Gateway has nearly $90 million impact on the region’s economy
Published on Feb 10, 2020
A new study by Emsi, a national provider of research to educational institutions, shows that Gateway Community & Technical College added $89.8 million to Northern Kentucky’s economy in 2018-19. This is equivalent to supporting 1,451 high wage jobs in our region.
Much of this impact is made by Gateway’s highly skilled alumni who fill a growing need for skilled trade and technical positions. Gateway’s graduates that are currently employed in the region’s workforce added $69.9 million in added income to our economy.
For every dollar Gateway’s alumni and current students invest in their education they gain a return $8.70, realized in increased lifetime earnings. St. Elizabeth Healthcare, Amazon, Citi, Kroger and Mubea are some of the top employers of Gateway alumni.
In the 2018-19 academic year, 1,580 graduates were awarded at least one credential aligned with one of Kentucky’s five high-demand industry sectors.
Kentucky Industry Sector Graduates
Advanced Manufacturing - 266
Business and IT - 362
Construction - 199
Healthcare - 451
Transportation and Logistics - 302
Emsi calculated that local taxpayers’ investment of $8.7 million in Gateway in 2018-19 academic year, secured 19 percent return on investment. Local taxpayers benefit from added tax revenue stemming from students’ higher lifetime earnings and increased business output, amounting to $64 million. A reduced demand for government-funded services in Kentucky will add another $4.6 million in benefits to taxpayers. Overall, for every dollar of public money invested in Gateway, taxpayers will receive $7.90 in return.
“The numbers are astonishing,” said Dr. Fernando Figueroa, Gateway President. “At Gateway we have always known our work was greatly impacting our community; this study validates our work throughout our region.”
The results of the study reflect outcomes for fiscal year 2018-19. The study demonstrates that Gateway creates value and benefits the region’s economy by:
- increasing consumer spending in the state and supplying a steady flow of qualified, educated talent pipeline into the workforce;
- bettering the lives of students by raising their lifetime earnings and helping them achieve their individual potential;
- benefitting state taxpayers through increased tax receipts across the state and a reduced demand for government-supported social services;
- benefitting society as a whole in the region by creating a more prosperous economy; and
- generating a variety of savings through the improved lifestyles of students.
About the study
Data and assumptions used in the study are based on external data inputs which reflect the most current economic activity and data. These data include (but are not limited to): the taxpayer discount rate; the student discount rate; the consumer savings rate; the consumer price index; national health expenditures; state and local industry earnings as a percent of total industry earnings; income tax brackets and sales tax by state; and unemployment, migration, and life tables. All data sets are maintained quarterly, although most updates occur only once a year. For a full description of the data and approach used in the study, visit the Better Lives for a Better Kentucky website for a copy of the main report.
Emsi, a CareerBuilder company, is a leading provider of economic impact studies and labor market data to educational institutions, workforce planners, and regional developers in the U.S. and internationally. Since 2000, Emsi has completed over 2,000 economic impact studies for educational institutions in three countries. Visit www.economicmodeling.com for more information about Emsi’s products and services.