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ROI

Return on Investment for WVUteach
WVUteach is a unique university-based secondary STEM (Science, Technology, Engineering, and Math) teacher preparation program that answers the critical need for qualified STEM teachers in West Virginia and across the country. One of 44 currently active UTeach program replication sites at 44 universities in 21 states and the District of Columbia, WVUteach is part of a national effort, with a total enrollment of more than 6,200, with the UTeach program graduates projecting to teach more than 4 million secondary STEM students by 2022. At a current cost of $0.5M per year, WVUteach is an excellent investment for West Virginia.

For instance, consider the following data:

  • Average STEM career salary in WV 1: $62,940
  • Average non-STEM career salary in WV 1: $32,281
  • Increase in salary for a STEM worker in WV: $30,658
  • Average WV state taxes as % of salary 2:  8.8%
  • Increase in state revenue for STEM worker:  $ 2,698
  • Number of students who will be taught by each WVUteach graduate 3: 750
  • Number of WVUteach graduates/year 4: 41
  • Cost per WVUteach graduate produced (total cost to program): $25,901
  • Cost per WVUteach graduate produced (cost to University) 5: $10,626
  • Percent of students who change occupations from non-STEM to STEM because they had a WVUteach teacher 6: 0.67%
  • Number of additional jobs created/year 7: 205
  • Increased government revenue/year 7 : $553,070
  • Years to break even on State investment after program reaches steady state 8 = .79
  • Additional State Income Tax Revenue over these 205 STEM workers’ 20-year career = $11,061,406
  • Return on Investment 9: 2539%

Why Invest in WVUteach?

1. Change the Equation Vital Sign s, http://vitalsigns.changetheequation.org/state/west-virginia/demand#fields-growing
2. Institute on Taxation and Economic Policy, https://itep.org/whopays, average for pay range
3. Based on 90% entry into teaching and 80% retention. Assumes 150 students taught per year per teacher for 5 years.
4. Projected graduates per year are calculated based on the average number of graduates produced (point in time) for UTeach Cohort 1 partner programs.          WVUteach will begin producing graduates in 2018.
5. Does not take into account for University revenues associated from student tuition. Students in the WVUteach program receive both a STEM major        bachelor’s degree AND a teaching certificate upon graduation for the cost of their tuition.
6. 1 student out of 150 (each WVU teacher makes the difference in the life of at least 1 student per year – in cases where they teach subjects that would not      otherwise be taught, like physics, we expect to see effects 20 times larger).
7. Number of additional jobs and increased revenue beginning 10 years from start of program (steady state of program (WVUteach started in fall 2015)).
8. Years to break even = ((Number of WVUteach graduates/year*Cost per WVUteach graduate produced (cost to University))/Increased government     revenue/year)
9. Return on Investment for each year State funding of WVUteach = Increased government revenue per year/(Number of WVUteach graduate per year*cost to     University per graduate)