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New Study Shows Human Services Impact May Be $430 Million

Donahue Institute Reports Economic Activity Twice as Large as Reported Last


BOSTON, July 10 /PRNewswire/ -- A collaborative of Massachusetts' leading human services associations today lauded a study conducted by the University of Massachusetts' Donahue Institute that revealed the tax contribution of the state's human services industry could be as high as $437 million, twice as large as reported late last year.

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

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

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

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

SOURCE The Campaign to Strengthen Human Services
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