Cost Benefit Analysis of Placing Moderately and Severely Handicapped Individuals into Competitive Employment

Abstract

This paper presents an analysis of costs incurred and tax monies saved, over an approximately 4-year period, through the successful implementation of an ongoing job training and placement program. The focus of the analysis is on the amount of money saved rather than on the wages earned by moderately and severely handicapped workers. Factors in the cost analysis include number of months the client had been working, amount of staff hours expended on the client at the job site, amount of funds expended proportionately on each client, Supplemental Social Security Income saved, estimated cost of day programming for the client if no job placement had been made, Targeted Job Tax Credit Program costs, and amount of state and federal taxes withheld. After almost 4 years, the public's cumulative savings totaled $620,576, while expenditures totaled $530,300. Thus, the total direct financial benefit to taxpayers is $90,376. Since initiation of the program, the clients' cumulative earnings are over $500,000.