In a recent regional labor market study commissioned by the Orange County Regional Consortium in collaboration with Lightcast, an Economic Impact Study underscored Irvine Valley College (IVC) as a robust economic engine in Orange County. The study highlighted IVC’s substantial $738.4 million impact on the local economy in Fiscal Year 2023–24, representing approximately 0.2% of the county's total Gross Regional Product (GRP). This impact is enough to support 6,983 jobs, demonstrating IVC's role in fostering employment opportunities. Moreover, the study reflects that the college has played a key role in equipping its alumni with an education that paves the way for higher-paying careers, benefiting thousands of individuals and contributing significantly to the region's economic vitality.
The analysis shows that IVC plays a vital role in shaping students’ futures by providing education, training, and essential skills for successful and rewarding careers. The study confirms that IVC is a sound investment, generating strong returns for students, taxpayers, and society. On average, students see a lifetime return of $3.50 in higher future earnings for every dollar invested in their education. This translates to an average annual rate of return of 13.6%, higher than the 30-year U.S. stock market average of 10.1% and well above the 0.5% average interest earned on savings accounts.
According to the study, IVC also stimulates economic growth by attracting and retaining students who spend money locally on housing, food, transportation, and other living expenses. In FY 2023–24, about 25% of students came from outside Orange County, with many relocating to attend IVC. Together, relocated and retained students contributed $65.2 million to the county economy, supporting 904 jobs.
“The findings of this study highlight the essential role IVC plays in supporting both students and the economy,” said IVC President Dr. John Hernandez. “We provide pathways to transfer, degrees, and careers while connecting students to real-world opportunities that lead to good-paying jobs and strong futures. Together with business, government, and education partners, IVC helps shape a thriving region built on economic growth and social mobility.”
In FY 2023–24, taxpayers invested $146.9 million in IVC. In return, state and local governments will collect a present value of $160.1 million in added tax revenue over the working lives of IVC students, as graduates earn more and employers expand business activity. Taxpayers will also benefit from $18.9 million in savings tied to improved health, reduced reliance on income assistance, and lower justice system costs. Altogether, total taxpayer benefits equal $179 million, producing a benefit-cost ratio of 1.2 – meaning that for every public dollar invested, taxpayers will receive $1.20 in return. The average annual rate of return for taxpayers is 1.8%, which compares favorably to other long-term public sector investments.
From a broader perspective, California also benefits significantly from IVC. Over students’ working lives, the present value of social benefits amounts to $2.1 billion, including $1.2 billion in added student income, $553 million in added business income, $323.9 million in income from college activities, and $27.3 million in social savings related to health care, the justice system, and income assistance. With a total investment of $259 million in FY 2023–24, this yields a benefit-cost ratio of 8.3 —meaning every dollar invested in IVC generates $8.30 in benefits to California society.
Impacts created by IVC in Fiscal Year 2023–24:
- Operations spending impact: $120.8 million
- Construction spending impact: $5.7 million
- Student spending impact: $65.2 million
- Alumni impact: $546.7 million
Total economic impact: $738.4 million, (.02% of country GRP), or 6,983 jobs supported.
The Economic Value of IVC to Orange County: Main Report »