Alabama’s community colleges contribute $8.1 billion to state’s economy

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February 12, 2025

(Alabama Community College System/Facebook, YHN)

According to a recent report published by the labor market analytics company, Lightcast, students and alumni of the Alabama Community College System (ACCS) generated $8.1 billion for the state’s economy in Fiscal Year 2023-24. The sum equates to approximately 3% of Alabama’s total gross state product.

“The ACCS enriches the lives of students by raising their lifetime earnings and helping them achieve their individual potential,” the report stated. “The colleges benefit state and local taxpayers through increased tax receipts and a reduced demand for government-supported social services.”

ACCS Chancellor Jimmy H. Baker emphasized the importance of the system for Alabama’s businesses and workforce.

“Our students and graduates are working, earning, and reinvesting in Alabama’s communities,” said Baker. “Businesses across the state rely on them to keep operations strong. No other entity has a greater reach in education and workforce training, and we are committed to ensuring every student leaves our colleges prepared to contribute to their communities, their industries, and Alabama’s economic growth.”

Per the ACCS, for every dollar a student invests in their education in the system, they can expect to gain $5.60 in lifetime earnings. Alabama’s 2-year college system generates more tax dollars than it takes. State taxpayers will see $1.20 in added tax revenue and public sector savings for every dollar invested into the system. Society will also benefit from $6.50 in added income and social savings for every dollar.

The Alabama Community College System (ACCS) contributed $8.1 billion to the state’s economy and its graduates supported more than 114,000 jobs in FY 2023-24, according to a recent study by Lightcast released today! pic.twitter.com/Bk7pStSlg1

— Alabama Community College System (ACCS) (@ACCS_Education) February 12, 2025

Additionally, the report showed that Alabama’s community colleges support 114,043 jobs in Alabama, which is equivalent to one in every 26 jobs. Students, who might have otherwise left Alabama for higher education, chose to stay because of the opportunities available at the state’s community colleges. In the 2023-24 school year, 3% of ACCS students were from out of state, with some relocating to Alabama specifically to attend a community college.

While the ACCS plays a role in attracting and retaining talent, its greatest impact comes from its graduates. In FY 2023-24 alone, ACCS alumni generated $6.9 billion in added income, supporting the equivalent of 96,200 jobs in Alabama.

Austen Shipley is the News Director for Yellowhammer News. You can follow him on X @ShipleyAusten

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