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

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

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

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

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

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

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

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

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

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

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

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 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

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

Elliott D. Pollack & Company Top 10 Community Placement Inputs Goodwill Industries Operating in California IndustryJobs Hourly Rate Hours/ Week Months Employed Retail Trade3,026$ Administrative Support Services2,134$ Warehousing & Storage1,938$ Construction, Maintenance & Repair 858$ Waste Management and Remediation Services704$ Food Services & Drinking Places617$ Food, Beverage & Tobacco553$ Repair & Maintenance512$ Nursing & Residential Care430$ Personal & Laundry Services392$ 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

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 $ Goodwill Industries of Orange County 1,119 $ Goodwill Industries of Redwood Empire 187 $ Goodwill Industries of Sacramento Valley 28 $ Goodwill Industries of San Diego County 2,955 $ Goodwill Industries of San Francisco, San Mateo & Marin counties 375 $ Goodwill Industries of San Joaquin Valley 123 $ Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo 889 $ Goodwill Industries of Silicon Valley 140 $ Goodwill Industries of South Central California 9 $ Goodwill Industries of Southern California 6,939 $ Goodwill Industries of Southern Los Angeles County 172 $ Goodwill Industries of Ventura & Santa Barbara Counties 423 $ Total14,215$ 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 15

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 $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 $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 $8.0$19.9$0.62 Goodwill Industries of San Joaquin Valley $1.7$4.4$0.15 Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo $12.5$34.2$0.91 Goodwill Industries of Silicon Valley $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 $9.5$21.9$0.75 Goodwill Industries of Ventura & Santa Barbara Counties $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

Elliott D. Pollack & Company Annual Direct Community Placements Goodwill Industries Operating in California Organization Goodwill Industries of Greater East Bay Goodwill Industries of Orange County ,119 Goodwill Industries of Redwood Empire Goodwill Industries of Sacramento Valley Goodwill Industries of San Diego County 1,9702,066 2,6992,955 Goodwill Industries of San Francisco, San Mateo & Marin counties Goodwill Industries of San Joaquin Valley Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo 4711,349 1, Goodwill Industries of Silicon Valley Goodwill Industries of South Central California Goodwill Industries of Southern California 3,8827,163 9,0616,939 Goodwill Industries of Southern Los Angeles County Goodwill Industries of Ventura & Santa Barbara Counties 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

Elliott D. Pollack & Company Community Placement Summary Goodwill Industries Operating in California 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

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

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

Elliott D. Pollack & Company Goodwill Operations 21

Elliott D. Pollack & Company Operations Impact Summary The Goodwill organizations operating in California employed 13,453 people in 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

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$ Administrative, business, and management services2,525$ Supply Chain1,383$ Individual and Family Services686$ E-Commerce151$ Janitorial Services122$ Self Help Organisations83$ Security Services45$ Commercial Services- misc. manufacturing40$ Commercial Services- repair & maintenance38$ 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

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 $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 $12.0$28.8$1.00 Goodwill Industries of Santa Cruz, Monterey & San Luis Obispo $13.4$31.0$1.03 Goodwill Industries of Silicon Valley $23.0$54.4$1.93 Goodwill Industries of South Central California $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 $14.2$32.9$1.21 Goodwill Industries of Ventura & Santa Barbara Counties $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

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

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

Elliott D. Pollack & Company Operations Summary Goodwill Industries Operating in California 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

Elliott D. Pollack & Company Capital Improvements 28

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 The total economic impact of construction in 2012 was $38.7 million. 29

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, $3.4$7.8$0.28 Goodwill Industries of San Diego County $6,684, $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, $3.0$6.8$0.24 Goodwill Industries of Silicon Valley $2,998, $2.7$6.2$0.22 Total $18,744, $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

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

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

Elliott D. Pollack & Company Impact of Construction Goodwill Industries Operating in California 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

Elliott D. Pollack & Company Total Impact Goodwill Industries Operating in California 2012 PlacementsOperations Construction TOTAL Direct Jobs14,21513, ,822 Total Jobs15,45016, ,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

Elliott D. Pollack & Company Total Impact Goodwill Industries Operating in California 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

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