Economic Benefits of Rehabilitation

CALIFORNIA STATE DEPARTMENT OF REHABILITATION
Fiscal Year 1969-70
Field Support Services 70-9-11
Revised October 14, 1970

Over 100% return on an investment in three years time!

In 1969-70, 14, 358 clients were rehabilitated. In three years these clients will return an estimated 132 percent of the total cost of the program to the government. This amounts to a total of over 45 million dollars. No attempt has been made to place a monetary value on the benefits resulting from the rehabilitation of clients who are able to return to jobs as homemakers or unpaid family workers.

  • • Average annual earnings of the rehabilitated clients who have earnings
  •     $ 5,415
  • • Cost
  •     [*] of vocational rehabilitation for disabled clients$34,528,544
  • Average cost per rehabilitated client
  •     $ 2,405
  • • Annual increase in earnings after rehabilitation:
  •     
    • Annual earnings at time of rehabilitation
    •     $71,060,028
    • Annual earnings at time of acceptance for service
    •     $13,867,516
      • Increase in earnings
      •     $57,192,512
      • Discount 10%
      •     $51,473,261
  • • Money saved or returned to the government:
  •     
    • 1. Estimated sales tax paid on discounted increased earnings
    •     $ 1,017,743
    • 2. Estimated State income tax paid on discounted increased earnings
    •     $ 571,703
    • 3. Estimated Federal income tax paid on discounted increased earnings
    •     $ 6,282,574
    • 4. Estimated annual savings on public assistance funds
    •     $ 2,570,549
    • 5. Estimated annual savings by elimination of institutional costs
    •     $ 1,764,168
    • 6. Estmated annual Medi-cal savings
    •     $ 1,427,268
    • 7. Estimated annual Social Security Benefit savings
    •     [**]$ 1,498,392
  • • Total Estimated money saved or returned to the government within one year as a result of the rehabilitation of clients
  •     $15,132,397
  • • Percent of fiscal year 1969-70's $34,528,544 costs
  •     [*] returned to the government:
    • In one year
    •     44%
    • In three years
    •     132%