JWOD NDEAM MATERIALS

Introduction
What is JWOD?

History of the JWOD Program

JWOD Program Partners
Planning Federal JWOD Celebration Activities
Key Messages
JWOD Program Facts & Figures
Economic Benefits Studies Summaries
Sample Secretary's Announcement
Sample Memorandum of Support
Memorandums of Support from Federal Agencies
FAQs from the Federal Perspective
JWOD Participating Nonprofit Agencies
JWOD NDEAM Poster
JWOD Logos
Information for JWOD Participating Agencies

2003 Economics Benefits Studies Summary

Introduction

Providing employment opportunities to more than 45,000 people, the Javits-Wagner-O'Day (JWOD) Program is the largest single source of employment for people who are blind or have other severe disabilities in the United States. More than 600 nonprofit organizations employ these individuals while delivering a wide array of quality products and services to the Federal Government.

The JWOD Program is a cost-effective way to help people who are blind or have other severe disabilities to achieve greater independence, as it enables many individuals to reduce dependence on Government support and join the ranks of taxpayers. This is exemplified by the report below, which presents the results of studies that evaluate how employment in JWOD commissary services, food service programs and Public Building Service (PBS) custodial projects affects workers' use of Government entitlements. These studies were conducted by Mathew Greenwald & Associates, Inc. on behalf of NISH.

Commissary

Employing individuals with disabilities in JWOD commissary programs saves Federal and state Governments an estimated $2.75 million through the reduction of entitlements paid to these individuals. These workers also increase their payments to the Government through income and payroll taxes, which amount to an estimated $3.9 million. In all, by employing 2,134 workers with disabilities, these JWOD commissary contracts have a net impact on Government balance sheets of $6.65 million. This is an annual savings of $3,138 per worker.

The reduction (savings to the Government) in Government expenditures for entitlements found is due to the discontinuation of entitlements for some workers and a reduction in the amount of benefits received by others.

Among those who received welfare prior to their employment in the JWOD Program, more than nine out of ten (92 percent) eliminated their dependence on this entitlement entirely. A similarly large proportion of food stamp beneficiaries (88 percent) no longer participate in that entitlement program. Three-quarters of SSI recipients report discontinued or reduced benefits (74 percent). While 17 percent show a reduction in this benefit, the majority (57 percent) eliminated the use totally. Social Security Disability Insurance (SSDI) was likewise reduced or discontinued by 60 percent of the employees receiving it prior to their jobs on the JWOD project. Reliance on public housing, Medicaid and Medicare also dropped significantly.

Food Service

Employing individuals with disabilities in JWOD food service programs saves Federal and state Governments an estimated $3.7 million through the reduction of entitlements paid to these individuals. These workers also increase their payments to the Government through income and payroll taxes, which amount to an estimated $4.9 million. In all, by employing 2,809 workers with disabilities, these JWOD food service contracts have a net impact on Government balance sheets of $8.6 million. This is an annual savings of $3,053 per worker.

Similar to what was found for commissary workers, the reduction (savings to the Government) in Government expenditures for entitlements found for food service workers is due to the discontinuation of entitlements for some workers and a reduction in the amount of benefits received by others.

Nearly all workers who received food stamps just before working for a JWOD food service program reduced or discontinued this benefit after working for JWOD (96 percent). A similar proportion either reduced or discontinued their welfare benefit (92 percent). About three out of four workers reduced or discontinued their Supplemental Security Insurance (SSI) benefit through their JWOD employment (78 percent). Further, at least half of workers who received Social Security Disability Insurance (SSDI) either receive less or have stopped receiving this benefit since working for a JWOD food service program (57 percent). Reliance on public housing, Medicaid and Medicare also dropped significantly.

Custodial

Employing individuals with disabilities in JWOD PBS custodial programs saves Federal and state Governments an estimated $15.7 million through the reduction of entitlements paid to these individuals. In addition, JWOD employment increases the payments these workers make to the Government through income and payroll taxes, totaling an additional $15.8 million. Thus, by employing 5,176 workers with disabilities, these JWOD custodial contracts have a net impact on Government balance sheets of $31.5 million. This is an annual savings of $6,084 per worker.

Similar to what was found for the commissary and food service workers above, the reduction (savings to the Government) in Government expenditures for entitlements found for custodial workers is due to the discontinuation of entitlements for some workers and a reduction in the amount of benefits received by others.

Nearly all workers who received welfare just before joining the JWOD Program reduced or discontinued this benefit after JWOD employment (97 percent). A similarly high proportion either reduced or discontinued their food stamp benefit subsequent to JWOD employment (92 percent). At least three out of four workers reduced or discontinued their Supplemental Security Insurance (77 percent) or public housing benefit (76 percent) through their JWOD employment, and two out of three reduced or eliminated the amount of their Social Security Disability Insurance benefit (69 percent). Reliance on Medicaid and Medicare also dropped significantly. .