PEOPLE WITH DISABILITIES WORK:
AMERICA BENEFITS

Economic Benefits Brief on Government Entitlements and Taxpayer Contributions through JWOD Program Custodial Projects in the Public Buildings Service

This brief presents the results of a study that evaluates how employment in Public Buildings Service (PBS) custodial contracts through the Javits-Wagner-O’Day (JWOD) Program reduces workers’ use of Government entitlements and increases taxpayer contributions. The JWOD Program is an employment and training program for people who are blind or have other severe disabilities. Originally created in 1938 to provide job opportunities for people who are blind, the Wagner-O’Day Act was expanded in 1971 to include people who have other severe disabilities and was renamed the Javits-Wagner-O’Day Act. These jobs involve the performance of services and the production of goods for the Federal Government. This brief focuses on employment in JWOD PBS custodial projects. As part of the same research, workers in food service and Defense Commissary Agency (DeCA) projects were also surveyed (these results are presented in separate reports). All studies were conducted by Mathew Greenwald & Associates, Inc. on behalf of NISH, one of two central nonprofit agencies that facilitate the JWOD Program.

Employing individuals with disabilities in PBS custodial projects saves the Federal and State Governments an estimated $15.7 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 $15.8 million. In all, by employing 5,176 workers with disabilities, these JWOD PBS custodial contracts have a net impact on Government balance sheets of $31.5 million. This is an annual savings of
$6,084 per worker.

Increase in Payments to Government—Total $15.8M*

Social Security/Medicare-Worker’s Share	$5.2M
Social Security/Medicare-Employer’s Share	$5.2M
Federal Income Tax	$3.1M
State Income Tax	$2.2M

 

Total Government Savings and Revenue—$31.5M*

*Numbers may not add up due to rounding.

Percentage Discontinuing or Reducing Government Entitlements
Percentages are based on the number receiving each particular entitlement just prior to JWOD employment.

	KEY
Discontinued			Reduced

Welfare	91% 6%	(97%)
Food Stamps	85% 7%	(92%)
SSI	54%  23%	(77%)
Public Housing	49% 27%	(76%)
SSDI	48% 21%	(69%)
Medicaid	50%
Medicare	35%

 The reduction in government expenditures for entitlements shown is due to two factors:
(1) the discontinuation of entitlements by some workers, and (2) 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%). A similarly high proportion either reduced or discontinued their food stamp benefit subsequent to JWOD employment (92%). At least three out of four workers reduced or discontinued their Supplemental Security Insurance (77%) or public housing benefit (76%) through their JWOD employment, and two out of three reduced or eliminated the amount of their Social Security Disability Insurance benefit (69%). Reliance on Medicaid and Medicare also dropped significantly.