California, August 24, 2025
News Summary
A recent report from Lightcast reveals that California community colleges contribute over $173 billion to the state’s economy annually. This economic impact includes student spending, alumni productivity, and job support, demonstrating the significant role these institutions play in workforce development and economic stability. With around 2.1 million students served each year, community colleges are vital to the education system and the broader economy. The report highlights the impressive return on investment for students and taxpayers alike.
California community colleges are making significant contributions to the state’s economy, generating over $173 billion annually, according to a recent economic impact report conducted by Lightcast, a labor market research firm. This study reviewed data for the 2023-24 fiscal year, focusing on various aspects like operations, construction, student spending, and the productivity of alumni.
The economic activities associated with California’s 116 community colleges account for roughly 5% of the state’s gross product. These institutions pay about $8.9 billion in payroll and benefits for 83,000 employees and spend approximately $7.8 billion on goods and services, resulting in an additional $7.3 billion in income and supporting over 53,000 jobs.
Construction projects at community colleges contribute another $1.1 billion to California’s economy, which translates to around 11,000 jobs. Student spending also plays a vital role, adding an estimated $8 billion to the economy and helping to support over 93,000 jobs. In total, California community colleges serve approximately 2.1 million students each year.
Broader Economic Impact
The largest portion of the economic impact stems from alumni currently employed in California, whose enhanced productivity generates around $156.6 billion in income and supports approximately 1.5 million jobs. The report outlines a compelling return on investment: for each $1 invested in community colleges, students benefit with over $13 in earnings, taxpayers gain nearly $2 in added tax revenue, and society sees a return of $14 in increased income and social savings.
Strategic Importance and Workforce Development
This report aligns with the California Community Colleges’ Vision 2030 strategic plan, which emphasizes improving access and engagement, incorporating generative artificial intelligence in educational approaches, and fostering a green economy. California’s community colleges play a crucial role in workforce development by addressing industry demands and bridging existing skill gaps through practical training.
Specialized career education programs targeting critical sectors such as healthcare, information technology, advanced manufacturing, and wildfire management are being developed to enhance job readiness. Collaborations with industries, like the Tesla START Program and the Blue Economy and Climate Action Pathways certification program, further support economic growth and prepare students for the job market.
California’s community colleges are indispensable to the state’s economic landscape, generating approximately $128 billion in economic impact annually while enabling diverse populations to pursue career mobility opportunities.
Key Insights from the Report
- Total Economic Contribution: $173 billion annually.
- Operations Impact: $8.9 billion in payroll, $7.8 billion in goods and services.
- Job Support: Over 146,000 jobs supported through operations, construction, and student spending.
- Student Population: Approximately 2.1 million students served each year.
- Return on Investment: For every $1 invested, $13 in earnings for students, nearly $2 for taxpayers, and $14 in societal benefits.
- Alumni Contribution: $156.6 billion in income generated by graduates working in California.
Frequently Asked Questions
What is the total economic contribution of California community colleges?
How many students are served by California community colleges each year?
What is the return on investment for community college funding?
Key Features Overview
| Feature | Value |
|---|---|
| Total Economic Contribution | $173 billion annually |
| Job Support | Over 146,000 jobs |
| Student Population Served | 2.1 million annually |
| Construction Contribution | $1.1 billion |
| Return on Investment | $1 invested yields $13 for students |
Deeper Dive: News & Info About This Topic
- The Business Journal: Economic Report on California Community Colleges
- Sierra Sun Times: Impact of California Community Colleges
- The Conversation: Economic Impact of International Students
- California Chamber of Commerce: Workforce Development through Community Colleges
- Wikipedia: Community College
- Google Search: California Community Colleges Economic Impact
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
