Economic Impact Data

Odessa College Drives $395 Million Economic Impact in the Permian Basin

Odessa College is powering the regional economy and delivering an exceptional return on investment for students, taxpayers, and the community, according to a new economic impact report conducted by Lightcast and released in April 2025.

The report finds that Odessa College contributed $395 million in added income to the Odessa College Service Area during the 2022–23 fiscal year—equivalent to supporting 4,684 jobs, or about 1 in every 38 jobs in the region. This represents approximately 1.6% of the total gross regional product (GRP)—a contribution on par with major regional industries such as healthcare.

OC’s economic impact spans multiple dimensions:

• $8.5 million is added to the local economy due to the impact of Odessa College operations
• Student spending added $24.1 million to the local economy.
• Alumni working in the region generated $356.6 million in added income.

Graduates with an associate degree earn an average of $9,400 more per year than individuals with only a high school diploma. That added income doesn't just benefit students—it circulates back into the regional economy through spending, taxes, and business growth.

For every dollar students invest in their OC education, they receive $5.20 in lifetime earnings, yielding an 18.6% annual return. Taxpayers see an equally impressive return: $2.60 for every dollar spent, with total public benefits reaching $120.3 million in increased tax revenue and social savings.

Learn more:

• Infographic
• Fact Sheet
• Executive Summary
• Full Report

How We Measure the College’s Economic Impact

We ask a simple question: What would happen to our local economy if the college and its alumni didn’t exist?

To answer this, we look at:

1. Labor and Non-Labor Impact: The increase in wage income earned by the workforce (earnings) and the change in business profits
2. Sales Impact: The change in business sales revenue in the economy as a result of increased economic activity
3. Jobs: a measure of the number of full-time and part-time jobs that would be required to support the change in income

We break this into three main areas:

1. College Operations, Construction and Student Spending

• We count employee pay and college spending in the local economy
• We include student spending – but only from those who came from outside the region or stayed because of the college
• We subtract any spending that would’ve happened anyway if the college didn’t exist

2. Alumni Impact

• We count the extra earnings alumni bring to the region as a result of their training and education at Odessa College
• We remove alumni who no longer live or work in the area
• We subtract what would’ve been earned anyway
• We also include alumni contribution to businesses through their skills and spending

3. Investment Analysis

We look at the return on investment from three perspectives:

• Students: The impact on students earning potential over the course of their working life
• Taxpayers: The impact on the tax base due to more productive workers entering the workforce
• Society: Societal benefits such as reduced social costs (health care and crime) through increased income and better job opportunties

Have more questions? See full methodology