Integrated Employment: The Return on Investment, Cost-Effectiveness, and Fiscal

Impact on Workers with Disabilities

Robert Evert Cimera, Ph.D.Kent State University

rcimera@kent.edu

Disclaimer I am by no means suggesting that money

is the bottom line for any policy decisions.

Disclaimer I am by no means suggesting that money is the

bottom line for any policy decisions.However…

“Economics is the language of politicians and policymakers….”

Question #1: “Should People Go Into Supported Employment?”

Question #1: “Should People Go Into Supported Employment?”

Benefits: Wages Earned in the Community

Costs: Forgone Wages from a Workshop Taxes Paid Lost Governmental Subsidies

Question #1: “Should People Go Into Supported Employment?”

Individuals with Intellectual Disabilities (n=64,692) Benefit-Cost Ratio = 4.20

Source: Cimera (2010b)

Question #1: “Should People Go Into Supported Employment?”

Individuals with Intellectual Disabilities (n=64,692) Benefit-Cost Ratio = 4.20

Individuals with Autism Spectrum Disorder (n=19,436) Benefit-Cost Ratio = 5.28

Source: Cimera & Burgess (2011)

Question #1: “Should People Go Into Supported Employment?”

Supported Employment was cost-efficient from the worker’s perspective All disabilities, Secondary conditions, and All States.

Source: Cimera (in press)

Question #1: “Should People Go Into Supported Employment?”

Yes….

Question #2: “Which is More Cost-Effective: SE or SW?”

Supported v. Sheltered Employment

Cumulative Costs SE: $18,813SW: $46,855

Source: Cimera (2011b)

Supported v. Sheltered Employment

Cumulative Costs SE: $18,813SW: $46,855

Cost per Hr. Worked SE: $11.88

SW: $17.12

Source: Cimera (2011b)

Supported v. Sheltered Employment

Cumulative Costs SE: $18,813SW: $46,855

Cost per Hr. Worked SE: $11.88

SW: $17.12

Cost per Dollar Earned SE: $2.02SW: $9.39

Source: Cimera (2011b)

Percent of Total Program CostsSupported Employees

0%

2%

4%

6%

8%

10%

12%

14%

1 2 3 4 5 6 7 8 9 10 11 12

Fiscal Quarters

SupportedEmployees

Source: Cimera (2008)

Percent of Total Program Costs

0%

2%

4%

6%

8%

10%

12%

14%

1 2 3 4 5 6 7 8 9 10 11 12

Fiscal Quarters

ShelteredEmployees

SupportedEmployees

Source: Cimera (2008)

Question #2: “Which is More Cost-Effective: SE or SW?”

It appears, SE is more cost-effective.

Source: Cimera (in press)

Question #3: “Is SE a Good Investment for Taxpayers?”

Question #3: “Is SE a Good Investment for Taxpayers?”

Benefits (per month): $795.65 Alternative Program Savings………

$731.64 Taxes Paid………………………….. $

70.84 Reduction in Subsidies…………….($ 6.83)

Costs (per month): $544.31 Cost of SE Services………………..

$394.31 Tax Credits to Employers………….

$150.00

231,204 Supported Employees (2002-2007) Source: Cimera (2010a)

Question #3: “Is SE a Good Investment for Taxpayers?”

Benefit-Cost Ratio = 1.46 Mental Illnesses = 1.68 Physical Disabilities = 1.66 Autism Spectrum Disorder = 1.62 Sensory Impairments = 1.35 Intellectual Disabilities = 1.20 Traumatic Brain Injuries = 1.17

Source: Cimera (2009)

Question #3: “Is SE a Good Investment for Taxpayers?”

Yes…regardless of disability or number of disabilities (but not in all States).

Source: Cimera (2009)

Question #4: “How Do We Make SE More Effective and Efficient?”

The Utilization of “Natural Supports”SE with “Natural Supports”

Average Cost = $5,063Employment Cycle = 6.04 fiscal quartersCost per Quarter = $838

SE StatewideAverage Cost = $8,212Employment Cycle = 3.36 fiscal quartersCost per Quarter = $2,444

Source: Cimera (2007)

The Utilization of “Natural Supports”SE with “Natural Supports”

Reduced costs by 57.6% (from 2001 to 2005)

Nearly an 80% increase in length of employment.

Source: Cimera (2007)

Community-Based Transition Services

In-SchoolCost of Services = $1,551

Months Employed = 4.70

Community-BasedCost of Services = $1,020

Months Employed = 8.10

Source: Cimera (2010c)

Sheltered Workshops Prior to SENo Sheltered Workshop

Wkly Earnings: $137.20

Cost (sample): $4,543*

Cost (employed): $5,399*

Yes Sheltered Workshop

Wkly Earnings: $118.55

Cost (sample): $7,895

Cost (employed): $8,659

9,808 Individuals with Intellectual Impairments Source: Cimera (2011a)

Thank You!

Robert Evert Cimera, Ph.D.Kent State University, USA

RCIMERA@KENT.EDU

ReferencesCimera, R.E. (2007). Utilizing natural supports to reduce the costs of supported employment. Research and Practice for Persons with Severe Disabilities, 32(3), 1-6.

Cimera, R.E. (2008). The cost-trends of supported versus sheltered employment. Journal of Vocational Rehabilitation, 28, 15-20.

Cimera, R.E. (2009). Supported employment’s cost-efficiency to taxpayers: 2002 to 2007. Research and Practice for Persons with Severe Disabilities, 34, 13-20.

Cimera, R.E. (2010a). The national cost-efficiency of supported employees with intellectual disabilities: 2002 to 2007. American Journal on Intellectual and Developmental Disabilities, 115, 19-29.

Cimera, R.E. (2010b). The national cost-efficiency of supported employees with intellectual disabilities: The worker’s perspective. Journal of Vocational Rehabilitation, 33, 123-131.

Cimera, R.E. (2010c). Can community-based high school transition programs improve the cost-efficiency of supported employment? Career Development for Exceptional Individuals, 33(1) 4-12.

Cimera, R.E. (2011a). Does being in sheltered workshops improve the employment outcomes of supported employees with intellectual disabilities? Journal of Vocational Rehabilitation, 35, 21-28. Cimera, R. E. (2011b). Supported versus sheltered employment: Cumulative costs, hours worked, and wages earned. Journal of Vocational Rehabilitation, 35, 85-92.

Cimera, R.E. (in press). The Economics of Supported Employment: What New Data Tell Us. Journal of Vocational Rehabilitation.

Cimera, R.E. & Burgess, S. (2011). Do adults with autism benefit monetarily from working in their communities? Journal of Vocational Rehabilitation, 34, 173-180