The Economic Impact of ACCSES NJ's Member Organizations

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June 2024

AUTHORS
Brian Backstrom
Patrick Schumacher

Overview

ACCSES New Jersey (ACCSES NJ) is the assigned statewide nonprofit agency responsible for administering the Rehabilitation Facilities Set-Aside Act, otherwise known by the New Jersey Department of Human Services the State Use Law for Rehabilitation Facilities. Through this law, the organization supports the employment of individuals with disabilities by offering and administering what is commonly referred to as “state set-aside” contracts for commodities and services. ACCSES NJ collaborates with member organizations that qualify as service providers under the program, secures state set-aside contracts, and works with its member organizations to create employment opportunities for individuals with disabilities.

The Rockefeller Institute of Government was asked by ACCSES NJ to analyze the economic landscape surrounding service providers employing individuals with disabilities and to measure the overall economic impact of ACCSES NJ and its member organizations’ activities. Using data for 2022, we looked at overall and industry-specific direct employment across all member organizations, the jobs supported indirectly along ACCSES NJ’s supply chain, the impact of employees’ spending activities, and the resulting generation of tax revenues.

Key findings of the analysis of state set-aside contract activity include:

  • ACCSES NJ’s 38 member organizations directly employed 1,587 individuals and indirectly supported an additional 173 jobs through the activities of member agencies and employees.
  • The organizations generated $82.1 million in economic output across New Jersey, encompassing revenue from sales and services produced by the program and indirect and induced ripple effects across the economy.
  • ACCSES NJ members directly generated $2.2 million in state and local tax revenue, plus an additional $4.4 million in federal tax revenue. The indirect effects of ACCSES NJ’s and its member organizations’ activities generated an additional $2.3 million in state and local tax revenue, and an additional $3.1 million in federal taxes.

The economic benefits don’t stop with state set-aside contract activity. While ACCSES NJ member organizations rely on these state contracts, they also employ more than 18,800 other individuals with economic activity that helps create nearly 5,000 more jobs along the organization’s supply chain. This activity by member organizations outside of the state set-aside contract results in direct wages and benefits of approximately $577 million that in turn generate $58.8 million in additional state and local tax revenue for New Jersey.