Economic Impact of Foothill College

The Economic Value of Foothill College

July 2026

Foothill College creates a significant positive impact on the business community and generates a strong return on investment to its major stakeholder groups—students, taxpayers, and society.

Not only does the College help students build the skills, confidence, and connections they need to achieve their goals and thrive in fulfilling careers, but it also prepares them for a changing workforce while supporting their overall well-being.

Foothill's impact extends across Santa Clara County and beyond, supporting local businesses and industries, keeping talent and opportunity in the region, and contributing to a stronger economy and a more vibrant, prosperous community.

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Using a two-pronged approach that involves an economic impact analysis and an investment analysis, this study calculates the benefits received by each of these groups. Results of the analysis reflect fiscal year (FY) 2024-25.

Economic Impact Analysis

In FY 2024–25, Foothill College made a meaningful contribution to the local economy, generating $644.5 million in added income and supporting 4,800 jobs across the Foothill College Service Area*.

The $644.5 million total impact supported 4,800 county jobs.

Operations Spending Impact

Foothill College contributes to Santa Clara County as a major local employer and purchaser of goods and services, employing 883 full-time and part-time faculty and staff in FY 2024-25. Payroll amounted to $82.6 million, much of which was spent in the region on groceries, mortgage and rent payments, dining out, and other household expenses. The college also spent another $53.9 million on facilities, supplies, and professional services (excluding construction).

The net impact of the college’s operations spending added $87.8 million in income to the regional economy in FY 2024-25.

Construction Spending Impact

Foothill College invests in capital projects each year to maintain its facilities, create additional capacities, and meet its growing educational demands, generating a short-term infusion of spending and jobs in the regional economy. The net impact of Foothill’s construction spending in FY 2024-25 was $3.7 million in added income for the Foothill College Service Area.

Student Spending Impact

Foothill College contributes to the local economy by retaining students who might otherwise leave the Service Area for educational opportunities elsewhere. These “retained students” spend money locally on housing, groceries, dining, and other living expenses, generating additional economic activity throughout the region.

The expenditures of retained students in FY 2024-25 added $7.2 million in income to the Foothill College Service Area economy.

Alumni Impact

Over the years, students have studied at Foothill and entered or re-entered the workforce with newly acquired knowledge and skills. Today, many of these former students are employed throughout the Foothill College Service Area. As a result of their Foothill education, they earn higher incomes and increase the productivity of the businesses that employ them.

The net impact of Foothill College's former students currently employed in the regional workforce amounted to $545.8 million in added income in FY 2024-25.

Total Impact In FY 2024-25, Foothill added $644.5 million in income to the Santa Clara County economy. Expressed in terms of jobs, Foothill College's impact supported 4,800 jobs.

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Investment Analysis

Foothill College's FY 2024-25 students paid a present value of $30.2 million to cover the cost of tuition, fees, supplies, and principal and interest on student loans. They also forwent a value of $67.5 million in time and money had they been working instead of attending college.

In return for their investment, students will receive a cumulative present value of $642.4 million in increased earnings over their working lives. This translates to a return of $6.60 in higher future earnings for every dollar students invest in their education. Students’ average annual rate of return is 19.7%.

Student Perspective

Foothill College’s FY 2024-25 students paid a present value of $30.2 million to cover the cost of tuition, fees, supplies, and interest on student loans. They also forwent a value of $67.5 million in time and money had they been working instead of attending college.

In return for their investment, Foothill students will receive a stream of higher future earnings that will continue to grow throughout their working lives. The present value of the cumulative higher earnings that Foothill's FY 2024-25 students will receive over their working careers is $642.4 million.

Students see a strong return on their investment in a Foothill College education. For every $1 students invest in their education, they gain an estimated $6.60 in higher future earnings. Their investment also represents an average annual return of 19.7%. 

 

The average associate degree graduate from Foothill will see an increase in earnings of $14,500 each year compared to a person with a high school diploma or equivalent working in California.

Taxpayer Perspective

Taxpayers provided Foothill College with $92.6 million of funding in FY 2024-25. In return, they will benefit from added tax revenue, stemming from students’ higher lifetime earnings and increased business output, amounting to $264.5 million. A reduced demand for government funded services in California will add another $19.5 million in benefits to taxpayers.

Total taxpayer benefits amount to $284.1 million, the present value sum of the added tax revenue and public sector savings. For every dollar of public money invested in Foothill College, taxpayers will receive $3.10 in return over the course of students’ working lives. The average annual rate of return for taxpayers is 7.5%.

For every dollar of public money invested in Foothill College, taxpayers will receive a cumulative value of $3.10 over the course of the students’ working lives.

Social Perspective

In FY 2024-25, California invested $227.5 million to support Foothill College. In turn, the California economy will grow by $3.2 billion over the course of students’ working lives. Society will also benefit from $28.8 million of public and private sector savings.

For every dollar invested in Foothill College in FY 2024-25, people in California will receive $14.10 in return, for as long as Foothill’s FY 2024-25 students remain active in the state workforce.

Summary of Investment Analysis Results

The results of the analysis demonstrate that Foothill College is a strong investment for all three major stakeholder groups—students, taxpayers, and society. As shown, students receive a great return for their investments in an education from Foothill College. At the same time, taxpayers’ investment in Foothill returns more to government budgets than it costs and creates a wide range of social benefits throughout California.

* The rate of return is not reported for the social perspective because the beneficiaries are not necessarily the same as the original investors.

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Conclusion

Foothill College benefits businesses in the county by increasing consumer spending in the county and supplying a steady flow of qualified, trained workers to the workforce. Foothill enriches the lives of students by raising their lifetime earnings and helping them achieve their individual potential. The college benefits state and local taxpayers through increased tax receipts and a reduced demand for government-supported social services. Finally, Foothill College benefits society as a whole in California by creating a more prosperous economy and generating a variety of savings through the improved lifestyles of students.

About the Study Data and assumptions used in the study are based on several sources, including the FY 2024-25 academic and financial reports from FHDA, industry and employment data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, outputs of Lightcast’s Multi-Regional Social Accounting Matrix model, and a variety of studies and surveys relating education to social behavior. The study applies a conservative methodology and follows standard practice using only the most recognized indicators of economic impact and investment effectiveness.  Read the Full Report (PDF)