OACTS is partnering with the University of Cincinnati’s Economics Center to conduct a statewide economic analysis of career technical education in Ohio. By clearly illustrating the range of benefits the State of Ohio derives from the operations expenditures of OACTS member career technical centers and adult graduates of the various workforce development and certificate programs included in this analysis, OACTS will be better equipped to build support from key stakeholders, and the community-at-large for OTCs and Career Centers. Ohio Technical Center IPEDS data will also be used to inform the analysis.
The research team at the Economics Center will undertake this comprehensive analysis of the economic benefits of career technical programs provided through OACTS’s member institutions by examining the following key areas:
- Earnings profile for adult graduates (of included programs).
Using data provided by OACTS and its members, the students enrolled in OTCs, of the respective programs included in this analysis, of the past five years will be assessed and segmented based upon occupational skills developed at OACTS member institutions, and the earnings potential as a result of this training. The programs identified are available for both secondary and adult students.
- Return on Investment (ROI) for a degree or certificate (of included programs) through OACTS’s member institutions.
The Economics Center will analyze the costs of the included programs at OACTS members OTCs in order to calculate a return on investment. In addition to the costs of tuition, books, and fees, the Economics Center will incorporate the opportunity costs of pursuing training from the included programs (that is, the number of earnings that OTC program graduates gave up in order to pursue the education). By combining the benefits and cost findings, the Economics Center will produce an ROI over 5-, 10-, and 20-year time periods.
- Economic impact of operations and capital expenditures of all OACTS members.
The Economics Center will calculate the economic impacts using an input-output model for the State of Ohio. Calculations will include the direct and indirect spending generated by expenditures and employment during the year. To capture the spin-off effects of capital improvements, researchers will apply the same methodology to construction costs and labor attributed to the past five years of OACTS members’ capital expenditures
- Fiscal impacts generated for the State of Ohio of OACTS’s member institutions’ employee wages and earnings of graduates.
Fiscal impacts will be estimated for the State of Ohio in terms of earnings and sales tax revenue generated resulting from OATC member institutions’ operations and capital expenditures. Additionally, the changes in wages due to career-technical programs will then be calculated along with the associated changes in fiscal benefits accruing to the appropriate governmental entity