From Kandy S. Baker, Louisiana Rehabilitation Services:
LA Rehab Services contracted with LA State University to conduct a Return on Investment analysis. I will attach the final report for your information. Our agency is interested to learn of the simplistic equations for ROI that you receive from other states. Would you share your findings?
Attached is the Louisiana Rehabilitation Services Return on Investment report completed by Louisiana State University through a contract.
LRS is interested to learn of the simplistic equations that States use to calculate ROI. Please share your findings if possible.
Attachments: 1
From Jennifer Geuther, SD Division of Rehabilitation Services:
We use a Benefit-Cost Analysis program to determine the client payback through taxes and also what they experience in increased wages for every $1 spent on services. The program is “Benefit-Cost Analysis: A Decision Tool for Vocational Rehabilitation” by Ranjit Majumder, Steven Fullmer, and Richard Walls. I’m interested to hear what others are doing as well, as this program is dated 1992 and I’m not sure how much longer we’ll be able to run it. The program uses the number of successful closures, the increase in wages from application to closure, the average number of remaining years of work, and the total VR expenditures. It uses a discount rate to calculate the future value of earnings but I’m not sure what the formula is for determining this.
From David Doukas, CT Dept. of Rehabilitation Services:
I just recently prepared ROI information for CT. The methodology I used was to multiply the overall estimated effective State and Federal Tax rates to the (using RSA-911 reporting data at closure) Consumer annualized earnings. I was able to arrive at this methodology after working with a Research Analyst at the CT Department of Revenue Services (DRS). CT Effective Tax rates by Decile is published in CT Household Tax Incidence reports by CT- DRS. For federal effective Taxes I researched the Tax Policy Center at the Brookings Institute website. (go to http://taxpolicycenter.org) In the end I will go to Capitol Hill next month with a statement that “FFY 2014 Jobseekers who were closed successfully generated an estimated $12.8M in Federal and State Taxes”.
From Ron Barcikowski, Oregon VR:
See the report that I have attached for the definition. It is our Return on Investment report that was done in conjunction with Portland State University. Our definition is probably different from that listed on the Survey Monkey survey.
Attachments: 1
From Jeff Haight, Iowa Vocational Rehabilitation Services:
The attached is what Iowa uses for ROI. Iowa uses the tab “ROI Cash Rec’d State Portion” with our legislators each year. We do not use the sheet “ROI Actual Expense Fed’l & State”. The tab “Entry Required” is the data needed for the formulas to work on the remaining sheets. Each row indicates in red where the information is retrieved. The tab “Discount Rates” has two sections which will need to be calculated according to each states tax rates. The 1st is “Taxes and Revenues (Federal and State) (15% + 6.12% = 21.12%) and the 2nd is “Taxes and Revenues (State of Iowa Only)(6.12%)”. There are notes regarding each of these to the right and which cell to modify the formula.
Iowa does not yet readily available access to wage information from our unemployment department to check each client for wages after closure.
Attachments: 1
Posted in: Return on Investment