44 Chapter 3: Methodology a variety of studies and surveys analyzing the correlation between education and health, crime, and income assistance at the national and state level. We spread the probabilities across the education ladder and multiply the marginal differences by the number of students who achieved CHEs at each step. The sum of these marginal differences counts as the upper bound measure of the number of students who, due to the education they received at the college, will not have poor health, commit crimes, or demand income assistance. We dampen these results by the ability bias adjustment discussed earlier in the student perspective section and in Appendix 7 to account for factors (besides education) that influence individual behavior. We then multiply the marginal effects of education times the associated costs of health, crime, and income assistance.44 Finally, we apply the same adjustments for attrition and alternative education to derive the net savings to the government. Total government savings appear in Figure 3.3 and sum to $959.6 thousand. Table 3.5 displays all benefits to taxpayers. The first row shows the added tax revenues created in the state, equal to $13.9 million, from students’ higher earnings and increases in non-labor income. The sum of the government savings and the added income in the state is $14.8 million, as shown in the bottom row of Table 3.5. These savings continue to accrue in the future as long as the FY 2021-22 Business program student population of SUNY WCC remains in the state workforce. 44 For a full list of the data sources used to calculate the social externalities, see the Resources and References section. See also Appendix 10 for a more in-depth description of the methodology. Figure 3.3: Present value of government savings Crime $411.3 thousand Income assistance $405.9 thousand Health $142.5 thousand Source: Lightcast impact model 16+3939+4545+U$959.6 thousand Total government savings Table 3.5: Present value of added tax revenue and government savings (thousands) Added tax revenue $13,852 Government savings Health-related savings $142 Crime-related savings $411 Income assistance savings $406 Total government savings $960 Total taxpayer benefits $14,811 Source: Lightcast impact model
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