Raritan Valley Community College and its students contributed $410 million to the economies of Somerset and Hunterdon counties in fiscal year 2023-24, supporting 4,204 regional jobs, according to a new economic impact study announced by RVCC on Mar. 19.
The study highlights the role of RVCC in promoting economic development, enhancing student careers, and improving quality of life for local residents. The findings are part of a broader statewide analysis conducted through Lightcast by the New Jersey Council of County Colleges.
RVCC President Michael J. McDonough said, “The economic impact study confirms we already knew about Raritan Valley Community College: An investment in RVCC benefits all stakeholders—students, taxpayers, local businesses, and society as a whole.” He added that the college prepares students for the workforce, supports local business through increased consumer spending, improves student earnings potential, and generates savings for society through healthier lifestyles among graduates. “RVCC truly enriches the quality of life for everyone in Somerset and Hunterdon County,” McDonough said.
Key findings from the report show that one out of every 88 jobs in Somerset and Hunterdon counties is supported by RVCC or its students. The college’s operations spending alone added $44.2 million to the regional economy during FY 2023-24. Taxpayers provided $35.6 million in funding to RVCC during this period but benefited from $93 million in returns through higher lifetime earnings for graduates and increased business activity. For every dollar invested by taxpayers in educating RVCC students, there is a return of $3.20 over their working lives—an annual rate of return of 8.8%. Alumni currently employed locally generated $360.8 million in added income last year.
For students specifically, each dollar invested resulted in an average income increase of $3.90; associate degree holders from RVCC earn on average $11,400 more per year than those with only a high school diploma or equivalent working in New Jersey. Students also experience an average annual return on investment of 14.9%. Healthier lifestyles among graduates led to an estimated $20.7 million savings for state and local taxpayers due to reduced reliance on government support services.
The data used in “The Economic Value of Raritan Valley Community” report came from academic and financial reports from FY 2023-24 at RVCC as well as labor market data from federal sources such as the U.S. Bureau of Labor Statistics and Census Bureau.
This study was part of a larger statewide review released last month showing that New Jersey’s community colleges collectively add $12.8 billion to the state economy—about 1.6% of total gross state product—and support more than 135,000 jobs across New Jersey.
The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association representing employers across various sectors according to the official website. The association advances competitive excellence and financial success for its members while delivering essential information and services according to the official website. Michele Siekerka serves as president and chief executive officer according to the official website. The association serves private-sector employers throughout New Jersey according to the official website, facilitates partnerships among businesses, government entities, and academic institutions according to the official website, and offers advocacy along with practical information and cost-saving benefits according to the official website.