6/22/2004 3:27:28 PM
June 22, 2004 – Business sales in Newfoundland and Labrador are $1.4 billion greater, and labour income is $668.4 million greater due to the past and present operations of College of the North Atlantic. That’s according to a recently completed socio-economic impact study carried out on the college and its activities.
But there’s more. According to the study, conducted by CCBenefits Inc., a US-based company that specializes in assessing the economic impacts of educational institutions, investing tax dollars in the college system pays huge dividends to the provincial government.
“The results (of the study) indicated strong and positive returns: a rate of return of 13.1%, a benefit/cost ratio of 2.2 (every dollar of provincial tax money invested in CNA today returns $2.24), and a short payback period of only 9.5 years,” says the study.
In the Executive Summary, economists M. Henry Robison and Kjell A. Christophersen, the study’s authors, concluded the college is also a sound investment for students.
“The college enriches the lives of students and increases their lifetime incomes,” says the study. “For every full-time year they attend they will earn an additional $1,934 per year.”
From an investment standpoint, the study indicates CNA students will enjoy a 9.7% rate of return on their investment. The corresponding benefit/cost ratio is 2.3 (for every $1 the student invests in a CNA education, he or she will receive a cumulative of $2.29 in higher future earnings over the next 30 or so years). The payback period (the time needed to recover all costs) is 13.4 years.
College President Pamela Walsh was enthusiastic about the results of the study.
“We have always known that the college was a good investment for the province and our students,” she says. “This study shows strong evidence of that.
“Even though we are publicly funded, we are not a burden to provincial taxpayers. In fact, the opposite is true and the activities undertaken by the college return money to provincial coffers.”
“A strong public education system is essential in providing a range of learning opportunities to ensure an educated population,” says Minister Ottenheimer.
“These opportunities ultimately provide significant social and economic contributions toward the prosperity of our province. The Government of Newfoundland and Labrador will continue to work with and support the excellent work of College of the North Atlantic.”
For more information on the social and economic benefits generated by College of the North Atlantic, visit their website at www.cna.nl.ca, or contact Stephen Lee, Communications Manager, at (709) 643-7929.
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For more information contact:
Stephen Lee
Communications Manager
College of the North Atlantic
(709) 643-7929
Please read the below documents for further information on the ROI Study:
- Executive Summary -- ROI Study(PDF)
- Fact Sheet -- ROI Study(PDF)