Economic Impact of Virginia Beach City Public Schools

The Virginia Beach, Va., school district asked a university economist to calculate just what it brings both to the city and the Hampton Roads region in southeastern Virginia.

Here is the Executive Summary of that report with slight edits:

The Virginia Beach City Public School System (VBCPS) has large and significant economic impacts on the economy of the Virginia Beach-Norfolk-Newport News Metropolitan Area. Every $1.00 spent and retained in the regional economy from the VBCPS operating budget results in total regional spending of $1.53, and every one direct VBCPS job is associated with another 0.64 jobs in the regional economy. Also, every $1.00 spent and retained from the VBCPS capital budget results in total regional spending of $1.55, and every $1 million of VBCPS capital spending is associated with 12.6 jobs in the region.

More important are the three major outputs of VBCPS: the economic value of degrees awarded, the future reduction in public costs associated with individuals attaining a high school degree, and the impact on local property values and revenues from the academic performance of VBCPS students.

The economic value of degrees awarded by VBCPS is measured as the expected increase in lifetime earnings of high school graduates compared to high school dropouts. For each of the recent five VBCPS graduating classes, this value is calculated as between $800 million and $900 million (in current 2011 dollars). Also, as a result of recent improved academic performance of VBCPS graduates, their increased likelihood of graduating from college is valued at $22 million for the last five graduating classes.

Considerable research has found that individuals graduating from high school are less likely to engage in criminal behavior and are more likely to lead healthy lifestyles compared to high school dropouts. This means highs school graduates reduce future public crime costs and public health costs. For each of the recent VBCPS graduating classes, the reduction in these costs is estimated at between $260 million and $280 million (in current 2011 dollars).

Lastly, VBCPS can impact local wealth – specifically real property values – in two ways. One is through the additional spending that high school graduates create compared to high school dropouts. This impact was estimated to be $60 million in additional regional real property values and $0.5 million in higher regional real property tax revenues for each recent class of VBCPS graduates.

The second and more significant local wealth impact comes from the positive response of residential property values to improved academic performance of VBCPS students. All standard measures of academic performance of VBCPS seniors show improving trends in recent years. Research shows that improved academic performance of public school students has significant positive impacts on local residential property values. Using the results of this research, it is found that VBCPS’ recent improved academic results has cushioned the adverse impacts of the recession on the local residential real estate market. It is calculated that the improved VBCPS test scores between 2007 and 2010 have resulted in City of Virginia residential property values that are between $2.8 billion and $9.5 billion higher compared to the levels without the improvement in academic performance.


The economic impact of VBCPS is summarized as follows:

Inputs
 Every $1 spent and retained in the Virginia Beach-Norfolk-Newport News
Metropolitan Area by the VBCPS operating budget results in $1.53 of regional
spending
 Every direct VBCPS job is associated with another 0.64 regional jobs
 Every $1 spent and retained in the region by the VBCPS capital budget results in
$1.55 of regional spending
 Every $1 million spent by the VBCPS capital budget results in 12.6 regional jobs

Outputs
 Each recent VBCPS graduating class generated between $800 million and $900
million in additional lifetime income (2011 $)
 As a result of improved academic performance of recent VBCPS graduates, their
increased likelihood of completing college is valued at $22 million for the last five
graduating classes
 Each recent VBCPS graduating class is associated with a lifetime reduction in public
crime costs and public health care costs of between $260 million and $280 million
(2011 $)
 The additional spending of each VBCPS graduating class adds $60 million to regional
property values
 The recent improvement in VBCPS academic performance is estimated to have
resulted in City of Virginia Beach residential property values that are between $2.8
billion and $9.5 billion higher compared to levels without the improvement in
academic performance.

Ω

You have read this article with the title Economic Impact of Virginia Beach City Public Schools. You can bookmark this page URL http://universosportinguista.blogspot.com/2011/12/economic-impact-of-virginia-beach-city.html. Thanks!