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New Study Shows Human Services Impact May Be $430 Million

Thursday, July 10, 2008 General News J E 4
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BOSTON, July 10 A collaborative of Massachusetts' leadinghuman services associations today lauded a study conducted by the Universityof Massachusetts' Donahue Institute that revealed the tax contribution of thestate's human services industry could be as high as $437 million, twice aslarge as reported late last year.

While an Executive Office of Health and Human Services report releasedlast November estimated human service provider spending yielded about $220million in state fees and tax payments, the study, 'The Fiscal and EconomicContributions of Human Service Providers in Massachusetts,' indicate thatfigure may have doubled. Additionally, a 2006 EOHHS report estimated theimpact to be only $112 million.

"We already knew how important the 185,000 human service workers are tothe economy of the Commonwealth, but we were surprised to learn their economicimpact is so much greater than we thought just seven months ago," the Campaignto Strengthen Human Services said in a statement. The Campaign is acollaboration of the Association of Developmental Disabilities Providers, theMassachusetts Council of Human Service Providers and the Mental Health andSubstance Abuse Corporations of Massachusetts.

The report said the lower estimates in prior years underestimated the fulltax impacts because it did not consider the effects of the non-payrollspending of providers and the effect of the spending on businesses across thestate that sell goods and services to them. Because of this, every three jobsin the human services sector support an additional private sector job.

"In addition to the critically important social and humanitarian role theyplay in our community, Massachusetts human services providers and theiremployees make highly significant contributions to both the state economy andstate and local tax revenues," the study concluded.

SOURCE The Campaign to Strengthen Human Services
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