A study was conducted to assess the economic impact of Pueblo Community College (PCC) upon its three-county service area for the 1985-86 academic year. The study sought to demonstrate that state funding for PCC yields high economic dividends for Colorado, and that public higher education institutions can be accountable in terms of measurable economic outcomes. The study utilized a basic economic impact model which measures direct expenditures including the college budget (less wages and financial aid), faculty and staff wages (less benefits and withholding taxes), student financial aid awarded, and spending by college visitors. Indirect expenditures included the average wages from jobs in new verified small businesses assisted by the college, and the actual wages from jobs created by six new industries to which PCC contributed. The results of the study indicated: (1) PCC made a 333% direct return on the total state general fund and student financial aid investment; (2) PCC made a 1,552% return on the total state investment when indirect economic impact is included; (3) the direct economic impact of PCC was $13,259,036; and (4) the indirect impact of the college was $48,426,158. (LAL)