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Economic Impact of The New Mexico Junior College & College of the Southwest on
Lea County, New Mexico
Client: New Mexico Junior College and College of the Southwest
Lea County Improvement Corporation engaged Gruen Gruen + Associates (GG+A) to estimate the economic impacts of New Mexico Junior College (NMJC) and College of the Southwest (CSW) generate for the entire Lea County economy. The colleges play a vital role in the local economy serving as a large employer and attracting many out-of-county individuals who would otherwise be unlikely to spend their money in Lea County. The colleges are currently in the process of building new student dormitories to accommodate their growing student population. Measurements of economic impact were taken with IMPLAN, an input-output (I-O) model taking into account inter-industry relationships within the county. The IMPLAN I-O model estimated the magnitude of the multiplier effect on income, employment and output demand through direct, indirect and induced effects. Annual economic impact estimates were made based on current and future expenditures of the colleges’ operations and payroll employees of the colleges, students, and visitors to the colleges. Sources and assumptions about estimates spending of NMJC and CSW employees, students and visitors were reviewed. Sources of revenue for each college from local and non-local sources were identified. The direct construction costs estimated to be required for completing the expansion programs as well as estimates of expenditures on operations and payrolls were analyzed. Collectively NMJC and CSW generate $36.4 million of output, 900 jobs and $27 million in personal income.