Study shows school’s
benefits

A report maps out advantages
of an education at Hawaii
Community College

A study on the benefits of attending Hawaii Community College on the Big Island suggests that students and taxpayers receive an attractive return on the investment in higher education.

The study by CC Benefits Inc., a company that specializes in generating economic projections for community colleges, estimated that for every dollar spent in tuition, a student will get back an annual return of about 23 percent in higher wages.

For every credit completed, the study found that on average students will earn $124 more per year. For every year of college completed, a student will earn an additional $3,679 a year.

By the time they retire, a student who completes two years of community college will earn about $295,109 more than someone without a high school diploma and $30,393 more than those who complete high school.

"Education has value whether or not you graduate," said Kjell Christophersen, co-president of CC Benefits Inc.

He said the study shows taxpayer dollars that go into community college education have a "very strong rate of return."

The study estimates that every dollar of tax money put into community college education eventually returns $2.25 to the treasury in higher tax revenue and savings and is paid back in 10.4 years.

The community college receives about $9.2 million in state funds each year and has an annual budget of about $17 million.

Hawaii CC pays $10.5 million in faculty and staff salaries and benefits, and accounts for an additional $104.5 million in earnings off campus, according to CC Benefits.

But the benefit to taxpayers is not just in higher earnings from those who attend. Christophersen said education is linked to improved health habits and reduced crime and incarceration.

"It means fewer people on welfare and unemployment," he said.

John Carroll, Hawaii CC's dean of student services, said the college paid $6,000 for the study, which was completed last January.

Because the school was in the middle of a search for a new chancellor last year, the study did not receive much attention.

But Carroll said now that the school has a new leader, the study will be presented to local business and community leaders to help generate support for Hawaii CC.