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Southwestern Michigan College shared a comprehensive study today that confirms the college is a major economic engine for Cass County. With 331 employees and an annual expenditure for goods and services of $19.8 million, SMC generates significant positive impact for taxpayers.

SMC’s clout in Cass County alone is estimated at $58.4 million per year, or enough to support 1,017 jobs. That includes $40.2 million in alumni impact, $17.7 million spent on current operations and student spending of $519,600.

An independent study conducted during the summer of 2024 by industry leader Lightcast analyzed data from the 2022-23 fiscal year. It found the college benefits regional businesses by increasing consumer spending while feeding a steady flow of qualified, trained workers into the labor force, increasing the productivity of the firms who hire them.

“We know the hard work of our faculty and staff has helped so many students chart their course to better lives,” said President Joe Odenwald. “What we do is so much more than just workforce training, and it’s important to quantify just how big of an economic engine Southwestern Michigan College is for Cass County and the region.”

Lightcast’s two-pronged analysis combines economic and investment impacts. SMC, which celebrated its 60^th anniversary in 2024, enriches students’ lives by lifting their lifetime earnings and helping them realize their individual potential by learning skills, networking with professionals, building self-confidence and landing higher-paying jobs.

The study shows that students in the 2022-23 cohort will see a return of $5.28 for every dollar they invest in their education at SMC and will earn $65.3 million more in earnings over their working lives.

That translates to an annual return on their SMC investment of 18.11 percent, quite favorable when compared to the stock market’s 30-year average annual return of 10.1 percent.

Going beyond just its taxing district, the college also benefits state taxpayers through increased revenues coupled with a reduced demand for government-supported social services.

For the full seven-county service area of Cass, Berrien, Van Buren, Kalamazoo and St. Joseph counties in Michigan and St. Joseph and Elkhart counties in Indiana, SMC’s annual impact swells to over $224.1 million, enough to support 2,955 jobs, as alumni are more likely to reside in that larger region, bringing their higher incomes and business productivity to businesses there, the study shows.   

Overall, Cass County taxpayers furnished SMC with $15.0 million in 2022-23. They benefit in the amount of $22.0 million through added tax revenue and public-sector savings. A reduced demand for government services translates into another $2.2 million benefiting taxpayers.

For every dollar of public money invested in SMC, taxpayers receive $1.61 in return over the course of students’ working lives.

State support of SMC amounted to $32.2 million. Michigan’s economy is projected to grow by $267.4 million during students’ working lives, with society benefiting from another $7.01 million of public and private-sector savings. For every dollar invested in SMC, the state reaps $8.53.

Those interested in reviewing the study’s full results can visit Economic Impact.