1. Elliott D. Pollack & Company Goodwill Industries Operating in California Economic and Fiscal Impact 2012 Presented By: Elliott D. Pollack & company March 20 th, 2013 1

2. Elliott D. Pollack & Company (1) Impact of Jobs Placement (2) Impact of Operations (3) Impact of Capital Improvements Goodwill Model 2

3. Elliott D. Pollack & Company (1) ECONOMIC IMPACT (2) FISCAL IMPACT What is “impact analysis”? 3

4. Elliott D. Pollack & Company (1) Economic activity (output) = gross receipts for goods or services generated in the economy. (2) Employment = part time and full time jobs (3) Earnings (wages) = total wage & salary payments including benefits Economic Impacts Models produce values for three economic measures: 4

5. Elliott D. Pollack & Company (1) Direct (2) Indirect (3) Induced Multiplier Effects: 5

6. Elliott D. Pollack & Company DIRECT: Jobs held by employees of the industry 6

7. Elliott D. Pollack & Company Direct activity creates ripple effects 7

8. Elliott D. Pollack & Company INDIRECT: Jobs created in industries that provide goods & services to the industry. 8

9. Elliott D. Pollack & Company INDUCED: Jobs created by the spending of the wages of direct & indirect employees. 9

10. Elliott D. Pollack & Company Fiscal Impact Taxes derived from employees such as: Employee Sales Tax Income Taxes Unemployment Taxes Gas Taxes 10

11. Elliott D. Pollack & Company Community Placements Putting People to Work 11

12. Elliott D. Pollack & Company Community Placement Summary The 13 Goodwill Industries organizations operating in California placed a total of 14,215 job seekers into jobs in 2012. The average hourly wage per placement was $10.75, working an average of 33 hours per week for 4 months. The ripple effect of those jobs throughout the economy generated an additional 1,235 jobs for a total of 15,450 jobs with total wages of $154.3 million and a total economic impact of $401.4 million. The fiscal impact generated by the placements was $11.7 million for the State of California. 12

13. Elliott D. Pollack & Company Goodwill Industries Operating in California The 13 Goodwill organizations operating in California placed 14,215 people into jobs in 2012 (excluding placements within local Goodwills). For perspective, this figure represents 5.7% of California’s statewide 2012 job growth. Note: Estimated retention was at least 3 months. 13

14. Elliott D. Pollack & Company Top 10 Community Placement Inputs Goodwill Industries Operating in California IndustryJobs Hourly Rate Hours/ Week Months Employed Retail Trade3,026$9.10305 Administrative Support Services2,134$11.29334 Warehousing & Storage1,938$9.27153 Construction, Maintenance & Repair 858$13.15374 Waste Management and Remediation Services704$12.16274 Food Services & Drinking Places617$8.49315 Food, Beverage & Tobacco553$8.90323 Repair & Maintenance512$12.33353 Nursing & Residential Care430$11.07334 Personal & Laundry Services392$12.63333 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 14

15. Elliott D. Pollack & Company Community Placement Inputs Goodwill Industries Operating in California Organization Direct Jobs (Placements) Weighted Avg. Hourly Wage Weighted Avg. Hours per week Weighted Avg. Mos. Employed Goodwill Industries of Greater East Bay 856 $11.33327 Goodwill Industries of Orange County 1,119 $7.53318 Goodwill Industries of Redwood Empire 187 $11.10313 Goodwill Industries of Sacramento Valley 28 $10.86355 Goodwill Industries of San Diego County 2,955 $11.19343 Goodwill Industries of San Francisco, San Mateo & Marin counties 375 $12.99307 Goodwill Industries of San Joaquin Valley 123 $9.07287 Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo 889 $11.56334 Goodwill Industries of Silicon Valley 140 $12.16335 Goodwill Industries of South Central California 9 $14.37403 Goodwill Industries of Southern California 6,939 $10.71333 Goodwill Industries of Southern Los Angeles County 172 $16.124012 Goodwill Industries of Ventura & Santa Barbara Counties 423 $9.58405 Total14,215$10.75334 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 15

16. Elliott D. Pollack & Company Impact of Community Placements Goodwill Industries Operating in California Organization Direct Jobs (Placements)Total Jobs Total Wages Economic Output ($mil) Fiscal Impact ($mil) Goodwill Industries of Greater East Bay 856973$14.9$38.0$1.15 Goodwill Industries of Orange County 1,1191,233$14.6$38.0$1.33 Goodwill Industries of Redwood Empire 187198$1.5$3.7$0.12 Goodwill Industries of Sacramento Valley 2832$0.5$1.3$0.03 Goodwill Industries of San Diego County 2,9553,192$27.7$79.0$1.99 Goodwill Industries of San Francisco, San Mateo & Marin counties 375437$8.0$19.9$0.62 Goodwill Industries of San Joaquin Valley 123137$1.7$4.4$0.15 Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo 889993$12.5$34.2$0.91 Goodwill Industries of Silicon Valley 140154$1.8$4.6$0.14 Goodwill Industries of South Central California 99$0.1$0.0$0.01 Goodwill Industries of Southern California 6,9397,375$55.3$139.8$4.08 Goodwill Industries of Southern Los Angeles County 172243$9.5$21.9$0.75 Goodwill Industries of Ventura & Santa Barbara Counties 423474$6.2$16.6$0.46 Total14,21515,450$154.3$401.4$11.7 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 16

17. Elliott D. Pollack & Company Annual Direct Community Placements Goodwill Industries Operating in California Organization2009201020112012 Goodwill Industries of Greater East Bay 448565 801856 Goodwill Industries of Orange County 192211 2771,119 Goodwill Industries of Redwood Empire 284242 207187 Goodwill Industries of Sacramento Valley 52110 2528 Goodwill Industries of San Diego County 1,9702,066 2,6992,955 Goodwill Industries of San Francisco, San Mateo & Marin counties 557577 360375 Goodwill Industries of San Joaquin Valley 343178 92123 Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo 4711,349 1,071889 Goodwill Industries of Silicon Valley 12068 76140 Goodwill Industries of South Central California 2436 179 Goodwill Industries of Southern California 3,8827,163 9,0616,939 Goodwill Industries of Southern Los Angeles County 109185 241172 Goodwill Industries of Ventura & Santa Barbara Counties 159239 403423 Total8,61112,989 15,33014,215 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 17

18. Elliott D. Pollack & Company Community Placement Summary Goodwill Industries Operating in California 2009201020112012 Total placements8,61112,98915,33014,215 Total jobs9,22514,27217,65415,450 Total wages ($mil)$96.7$154.1$263.7$154.3 Economic output ($mil)$259.0$417.2$675.3$401.4 Fiscal impact ($mil)$6.9$12.2$18.8$11.7 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 18

19. Elliott D. Pollack & Company Economic Impact of Community Placements 2012 Impact TypeJobsWages ($mil) Economic Output ($mil) Direct14,215$87.3$202.1 Indirect509$29.8$89.4 Induced727$37.1$109.9 Total15,450$154.3$401.4 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 19

20. Elliott D. Pollack & Company Fiscal Impact of Community Placements 2012 Secondary Impact from Employees Impact Type Employees Sales Tax Income Tax Unemployment Insurance TaxGas Tax Total Revenues Direct Revenues$4,227,900$479,700$1,109,900$679,200$6,546,700 Indirect Revenues$841,000$1,328,000$121,500$71,400$2,371,900 Induced Revenues$1,101,900$1,427,200$174,400$104,400$2,807,900 Total Revenues$6,220,800$3,244,900$1,405,600$855,000$11,726,300 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 20

21. Elliott D. Pollack & Company Goodwill Operations 21

22. Elliott D. Pollack & Company Operations Impact Summary The Goodwill organizations operating in California employed 13,453 people in 2012. The ripple effect of those jobs throughout the economy generated an additional 2,590 jobs for a total of 16,043 jobs with total wages of $366.5 million and a total economic impact of $854.7 million. The fiscal impact generated by California Goodwill operations in 2012 was $30.5 million. 22

23. Elliott D. Pollack & Company Top 10 Community Operations Inputs Goodwill Industries Operating in California Operation IndustryJobsHourly RateHours/week Months Employed Used Clothing and Merchandise Store8,342$9.803310 Administrative, business, and management services2,525$16.24389 Supply Chain1,383$9.743211 Individual and Family Services686$11.642911 E-Commerce151$11.373412 Janitorial Services122$11.23308 Self Help Organisations83$17.513311 Security Services45$14.612911 Commercial Services- misc. manufacturing40$11.143512 Commercial Services- repair & maintenance38$14.533911 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 23

24. Elliott D. Pollack & Company Impact of Operations Goodwill Industries Operating in California OrganizationDirect JobsTotal Jobs Total Wages Economic Output ($mil) Fiscal Impact ($mil) Goodwill Industries of Greater East Bay 1,0771,244$24.5$57.3$2.01 Goodwill Industries of Orange County 1,0391,380$46.9$108.9$3.76 Goodwill Industries of Redwood Empire 365452$12.3$28.8$0.91 Goodwill Industries of Sacramento Valley 2,2302,575$49.4$114.6$4.82 Goodwill Industries of San Diego County 1,3791,577$29.1$68.9$2.59 Goodwill Industries of San Francisco, San Mateo & Marin counties 1,0131,340$44.4$103.8$3.47 Goodwill Industries of San Joaquin Valley 299381$12.0$28.8$1.00 Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo 587683$13.4$31.0$1.03 Goodwill Industries of Silicon Valley 624787$23.0$54.4$1.93 Goodwill Industries of South Central California 232276$6.4$15.2$0.55 Goodwill Industries of Southern California 3,8654,414$77.2$178.3$6.14 Goodwill Industries of Southern Los Angeles County 360458$14.2$32.9$1.21 Goodwill Industries of Ventura & Santa Barbara Counties 383479$14.1$32.7$1.10 Total13,45316,043$366.5$854.7$30.5 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 24

25. Elliott D. Pollack & Company Economic Impact of Operations 2012 Impact TypeJobs Wages ($mil) Economic Output ($mil) Direct13,453$224.7$454.7 Indirect860$53.5$138.7 Induced1,730$88.3$261.3 Total16,043$366.5$854.7 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 25

26. Elliott D. Pollack & Company Fiscal Impact of Operations 2012 Secondary Impact from Employees Impact Type Employees Spending Sales Tax Income Tax Unemployment Insurance TaxGas Tax Total Revenues Direct Revenues$10,479,100$3,928,100$2,667,800$1,614,200$19,532,100 Indirect Revenues $1,469,700$2,536,100$205,000$123,900$4,334,700 Induced Revenues $2,601,800$3,371,000$411,600$249,200$6,663,600 Total Revenues$14,550,600$9,835,200$3,283,900$1,987,300$30,500,400 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 26

27. Elliott D. Pollack & Company Operations Summary Goodwill Industries Operating in California 2009201020112012 Direct employees9,5398,8479,88013,453 Total jobs10,89410,95112,61016,043 Total wages ($mil)$233.7$292.1$313.9$366.5 Economic output ($mil)$582.7$664.5$781.5$854.7 Fiscal impact ($mil)$16.3$22.7$24.1$30.5 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 27

28. Elliott D. Pollack & Company Capital Improvements 28

29. Elliott D. Pollack & Company Capital Improvements by Goodwill Industries Operating in California The total dollar value of capital improvements made in California in 2012 was $18.7 million. The construction generated 154 direct jobs and 275 total jobs with wages of $17.1million in 2012. The total economic impact of construction in 2012 was $38.7 million. 29

30. Elliott D. Pollack & Company Impact of Construction Goodwill Industries Operating in California Organization Value of Construction Direct Jobs Total Jobs Total Wages Economic Output ($mil) Fiscal Impact ($mil) Goodwill Industries of Greater East Bay $1,084,651916$1.0$2.2$0.16 Goodwill Industries of Redwood Empire $168,69512$0.2$0.3$.01 Goodwill Industries of Sacramento Valley $3,749,0483155$3.4$7.8$0.28 Goodwill Industries of San Diego County $6,684,9205598$6.1$13.8$0.5 Goodwill Industries of San Francisco, San Mateo & Marin counties $783,630612$0.7$1.6$0.12 Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo $3,275,1452748$3.0$6.8$0.24 Goodwill Industries of Silicon Valley $2,998,0002544$2.7$6.2$0.22 Total $18,744,089154275$17.1$38.7$1.4 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 30

31. Elliott D. Pollack & Company Economic Impact of Construction 2012 Impact TypeJobs Wages ($mil) Economic Output ($mil) Direct154$10.3$18.7 Indirect40$2.7$7.8 Induced81$4.1$12.2 Total275$17.1$38.7 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 31

32. Elliott D. Pollack & Company Fiscal Impact of Construction 2012 Secondary Impact from Employees Impact Type Employees Spending Sales TaxIncome Tax Unemployment Insurance TaxGas Tax Total Revenues Direct Revenues$277,300$525,100$36,800$22,300$861,530 Indirect Revenues$71,800$135,300$9,600$5,800$222,520 Induced Revenues$121,400$157,300$19,200$11,600$309,513 Total Revenues$470,500$817,700$65,700$39,700$1,393,563 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 32

33. Elliott D. Pollack & Company Impact of Construction Goodwill Industries Operating in California 2011 - 2012 20112012 Direct Jobs31154 Total Jobs65275 Total Wages ($mil)$3.9$17.1 Economic Output ($mil)$10.3$38.7 Fiscal Impact ($mil)$0.4$1.4 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 33

34. Elliott D. Pollack & Company Total Impact Goodwill Industries Operating in California 2012 PlacementsOperations Construction TOTAL Direct Jobs14,21513,45315427,822 Total Jobs15,45016,04327531,768 Total Wages ($mil)$154.3$366.5$17.1$537.9 Economic Output ($mil)$401.4$854.7$38.7$1,294.8 Fiscal Impact ($mil)$11.7$30.5$1.4$43.8 NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 34

35. Elliott D. Pollack & Company Total Impact Goodwill Industries Operating in California 2009 - 2012 2009201020112012 Direct Jobs18,15022,15325,24127,822 Total Jobs20,11925,42430,31931,768 Total Wages ($mil)$330.4$429.5$580.5$537.9 Economic Output ($mil)$841.7$1,044.3$1,464.3$1,294.8 Fiscal Impact ($mil)$23.2$33.6$43.2$43.8 *2009 and 2010 do not include the impact from construction. In addition, in some cases, changes were made to overall methodology and standards in the 2012 model. NOTES 1 The total may not equal the sum of the impacts due to rounding. 2 All of the above figures are based on current tax rates. Source: Elliott D. Pollack & Company; IMPLAN 35

36. Elliott D. Pollack & Company ELLIOTT D. POLLACK & Company 7505 East Sixth Avenue, Suite 100 Scottsdale, Arizona 85251 480-423-9200 P 480-423-5942 F www.arizonaeconomy.com Economic and Real Estate Consulting WWW.ARIZONAECONOMY.COM INFO @ EDPCO.COM 36