Investing in America: The Gateway to Independence
Public Vocational Rehabilitation – A Program that Works
A Publication of the Council of State Administrators of Vocational Rehabilitation 2005 – 2006
(CSAVR logo)
“People with disabilities want to be employed, educated, and participating
citizens living in the community. In today’s global new economy, America
must be able to draw on the talents and creativity of all its citizens.”
– President George W. Bush
“The facts show the VR Program not only benefits its participants. It also
is a cost-effective way to assure America retains a talented and expanding
labor pool that can contribute to all of society. Vocational rehabilitation
represents a critical part of what we pride ourselves on as a great nation:
opportunity for all.” – Robert Dole, ret. Senator, (R) Kansas
“Public VR improves the quality of life for every citizen, not just those
who have disabilities. It’s good fiscal policy for our government, it helps
lessen the stigma of disability in our society, and assists people with
disabilities in their pursuit of independence.” – Edward M. Kennedy,
Senator, (D) Massachusetts
(Horizontal arrow chart)
54 million Americans with disabilities (one out of five Americans) PLUS
Only 30.4% of people with disabilities are employed (compared with 73.5% of
non-disabled Americans who are employed*) PLUS
Public VR serves about one million consumers each year; 206,695 VR consumers
entered competitive employment in 2005 PLUS
Employed VR clients pay $930 million/year (estimated) in taxes PLUS
For very $1 invested in Public VR, $5 is returned to the government in taxes
paid EQUALS PUBLIC VR WORKS
(Arrow) Public VR under-funded and needs more resources to create more tax
payers
* Source: U.S. Census Bureau, 2003 & 2004 American Community Surveys (ACS)
The Public Vocational Rehabilitation Program – Helping People with
Disabilities Bridge the Gap to Financial Independence in the 21st Century
Economy
Since its creation in 1920, the Public Vocational Rehabilitation (VR)
Program has been in the vocational rehabilitation and employment business,
partnering with business to help more than 16 million people with
disabilities acquire and maintain gainful employment. Each year, nearly one
million persons with disabilities are served. In FY 2005, 206,695 of those
served were assisted in entering, maintain¬ing, advancing or returning to
employment. This would not be possible without the commitment of hundreds of
employers around the country who seek and rely on the highly qualified job
candidates the Public VR Program provides.
Funded under Title I of the Rehabilitation Act of 1973, as amended, the VR
Program is the primary Federal/State program assisting individuals with
disabilities, including individuals with significant disabilities, in
securing competitive employment. In order to achieve quality employment
outcomes for people with disabilities, VR works closely with business. The
Program employs qualified rehabilitation professionals to identify the
unique strengths, resources, priorities, concerns, abilities, capabilities,
interests and informed choices of eligible individuals so that
individualized service plans can be developed to ensure effective job
matching and ongoing job success, features that can positively influence the
bottom line for businesses.
The Program’s success is demonstrated in the numbers: Individuals who
completed their VR service plans in FY 2005 and went to work earned
approximately $3.5 billion in wages during their first year of work. During
that year, these new wage earners paid approximately $320 million in Federal
taxes; $94 million in State income taxes; and $518 million in Social
Security and Medicare taxes (self and employer). These individuals will be
able to pay back the cost of their rehabilitation services, through taxes,
in just two to four years. In addition, many of these individuals will
generate savings to the Federal Treasury and the Social Security Trust Fund
in an amount of $6 for every VR dollar spent, totaling approximately $480
million in future savings caused by SSI/SSDI beneficiaries who exited the VR
Program with jobs in Federal FY 2005.
Despite these facts, the employment rate for Americans with disabilities is
30.4% (compared with 73.5% employment rate of people who do not have a
disability) according to the U.S. Census Bureau, 2003 & 2004 American
Community Surveys (ACS). With increased funding for the Public VR Program,
more individuals with disabilities who want to and are able to work could be
employed.
Cost Benefit
Two studies, “Evaluation of Massachusetts’ Public Vocational Rehabilitation
Program”, conducted by the Commonwealth Corporation Center for Research and
Evaluation, October 2004, and “Economic Impact of the New Mexico Division of
Vocational Rehabilitation”, conducted by the University of New Mexico,
Bureau of Business and Economic Research, January 2004, not only show the
economic benefit of VR services to the individual, but the cost benefit that
accrues to the state and federal government as a result of the provision of
VR services.
The Massachusetts’ study concluded that, “The average projected increase in
lifetime earnings for consumers who received services is about $60,000 per
individual. The returns to society based on these projected increases in
lifetime earnings for consumers who received services range from $14 to $18
for each $1 invested in the MRC Public Vocational Rehabilitation Program.”
In the New Mexico study those consumers rehabilitated “increased their
weekly earnings by 251% when before and after rehabilitation services were
compared. Over their estimated work lives those net gains in weekly earnings
are expected to be maintained for those 1,539 clients. In present value the
total increase in future income is estimated at $185.3 million.”
Challenges Facing the Public VR Program
The Public VR Program works with several other federally funded programs.
When these programs experience budget cuts, compounded by an increased
demand for services, the VR Program is seen as an alternate source of
funding. These external challenges, combined with the minimal increases in
Federal funding over the last 20 years, impact the overall number of
individuals with disabilities who receive services and actually obtain
employment.
Special Education:
Between 1990 and 2004, the federal appropriation for special education
increased by approximately 333%. During the same time period, the federal
appropriation for the Public VR Program increased by only 22%. As a result
of these very significant increases in special education funding, an
ever-increasing number of special education students are exiting the
education system and seeking adult services, including Vocational
Rehabilitation, in order to participate in post secondary education, job
training, and/or to go to work.
Impact of the Workforce Investment Act of 1998 (WIA):
The Public VR Program is a mandatory partner in the WIA and, as such, is
expected to contribute significant resources to support the infrastructure
and other costs associated with the operation of the One-Stop Centers. While
VR’s involvement in State Workforce Investment Systems is critically
important, WIA is expected to place yet another financial burden on an
already strained program, further reducing the percentage of VR funds that
are available to provide services and supports to eligible individuals with
disabilities. In addition, the House bill to reauthorize the WIA, HR 27,
proposes to take significant resources from the Public VR Program far beyond
the resources contributed to the One-Stop Centers under current law. The
Senate bill, S 1021, also requires additional resources from VR to fund the
infrastructure costs and other common costs associated with the operation of
One-Stop Centers.
Cuts in Medicare and Medicaid
The President's budget, which proposes significant funding cuts in Medicare
and Medicaid will have a negative impact on the already strained resources
of the Public VR Program. Historically, VR has utilized these resources, as
appropriate, to assist with the cost of medical and support services for
some VR consumers. The proposed funding cuts, if enacted, will limit the
availability of these resources, thereby increasing VR's cost for the
provision of these services.
The Public VR Program is also impacted by ongoing advancements in assistive
technology that, while extremely beneficial to VR consumers, is often very
expensive and requires more resources. In addition, state VR agencies lack
the resources to meet the increased education requirements in each state for
rehabilitation counselors.
The Public VR Program Works
• A 10-year, multi-million dollar Longitudinal Study of the Public VR
Program, commissioned by the Rehabilitation Services Administration (RSA) /
Department of Education, provided evidenced based research that the VR
Program is effective in putting people with disabilities to work in good
jobs with opportunities for advancement.
• A FY 2006 Program Assessment Rating Tool (PART) Review, conducted by the
Office of Management and Budget (OMB) to rate program performance, rated the
VR Program favorably, and in general, successful in meeting its program
goal.
• A report by the Social Security Administration, released annually,
provides detailed information on the funds disbursed to State VR Agencies,
based on their success serving beneficiaries on Social Security Disability
Insurance (SSDI) and Supplemental Security Income (SSI). In FY 2005 SSA
projected a $480 million savings to the Trust Fund by the VR Program, and
established that every $1 that SSA spends on VR results in a $6 savings.
Appropriations Request for Programs Under the Rehabilitation Act
For FY 2007, the Council of State Administrators of Vocational
Rehabilitation (CSAVR), the only national organization whose sole purpose
and function is to advocate for the Public Vocational Rehabilitation
Program, recommends an increase in the Vocational Rehabilitation (VR)
appropriation of $258 million above the President’s budget request for FY
2007. The President’s budget proposes a 4.3% increase in funding for the
Public VR Program, which is the mandated CPI increase, called for in law.
However, the President’s budget request also eliminates funding for several
smaller programs with a total loss of funding of $51.7 million. With the
majority of State VR Agencies operating under an Order of Selection, a
system of prioritization whereby individuals with the most significant
disabilities are served first, it is unrealistic that the State VR Agencies
would be able to continue to provide services, under Title I of the
Rehabilitation Act, to all of the individuals previously served under the
programs that lost their funding.
The additional $206 million increase requested is specifically for the
purpose of implementing the new student transition requirements in the
Rehabilitation Act. Public VR will be able to serve 100,000 new transition
students in FY 2007 with the funding increase.
Based on the significant internal and external challenges facing the Public
VR Program, (i.e., staffing shortages, state budget shortfalls, increased
numbers of consumers seeking services, and increased service costs and
expectations) the CSAVR believes that an increased appropriation of $258
million above the President’s budget request for VR, for FY 2007, is an
appropriate recommendation.
In this era of significant federal and state budget deficits, and an
increase in the unemployment rate for individuals with disabilities, we urge
Congress to increase funding by an additional $258 million above the
President’s budget request for the Public VR Program. The Public VR program
is an historically successful and proven resource that provides $5 for each
$1 return on investment by creating tax paying citizens, many of whom no
longer receive public assistance.
National VR - Business Network
To add value to the Public VR Program and increase its effectiveness, CSAVR
is working with the 80 VR state agencies and major businesses across the
country to develop a comprehensive customer-driven National VR - Business
Network. This nationwide Network will serve as a hub for connecting
business, vocational rehabilitation specialists and VR consumers.
This pioneering resource will be unlike any other employment model currently
available: employers are providing detailed information about the types of
employment opportunities they have available or may have in the future,
their corporate culture, and desired candidate skills and capabilities which
will allow VR services to tailor training methods and services for a
client’s desired career choice. The driving force is the overwhelming
commitment of the business community who currently have a proud history
employing people with disabilities and want to increase their opportunities
to work with qualified candidates.
The long-term benefits of this Network to business are extensive:
- the program is flexible, allowing for customization of VR services to meet
employer needs
- businesses can take advantage of educational resources offered by regional
VR offices to help staff break down any attitudinal barriers to working with
people with disabilities
- businesses learn how to view the Americans with Disabilities Act as a
positive strategy rather than a hindrance
- retention of employees will increase due to more formalized and committed
relationship with the Network and VR offices
VR clients seeking employment will have access to specific jobs available
throughout the country. These jobs will be at all career levels across
broad-based industries, including traditional employer work that can be
conducted from home and opportunities for self-employment or home-based
businesses. The true value of the network comes with the fact that
prospective job candidates will know in advance what jobs are available from
which employers, and tailor their VR services and training to achieve that
specific career goal.
“Whenever there’s been a special need by our company, VR has responded. As
this network grows, it would be great for company HR representatives in
other states to go directly to a VR rep in that state. This is a far more
successful way to be responsive and a much better plan.”
Recreational Equipment Incorporated (REI)
“VR has been there from the very beginning, not just in a hire, but for all
services we’ve needed. Companies don’t always have that with other vendors.
VR has helped us reach out beyond our state to VR contacts in other states
where our company is located and the response by VR locally has been equally
as valuable.”
Wachovia Bank
“This network is the right thing to do because of VR’s role in putting
people to work. It’s cost effective to have a network like this because
these services to business are already funded and available in many
locations.”
The Southern Company
"We have a really good working relationship with VR in our state. Safeway
would definitely be interested in the formalization of a statewide and
nationwide network...it would be very helpful to both parties."
Safeway, Inc.
The Value of Public VR to Consumers
Jamie C. Ray, Esq., Attorney
Jamie Ray of Lancaster County, PA, knew she wanted to be a lawyer since she
was 11. The fact she had been born with cerebral palsy, a developmental
disability that impairs her walking and balance, was inconsequential. Even
when as a teenager a doctor told her that wanting to be an attorney was “a
lofty goal”, Jamie didn’t care what the doctor had to say about her career
ambition and enrolled in the undergraduate program at York College in York,
PA.
Jamie’s first VR counselor, Dale Dissinger, helped her to receive financial
support so she could focus on her studies without having to worry about
holding down a job. This support progressed all the way through college. But
the greatest value of working with OVR, Jamie says, was knowing that there
was someone who believed in what she wanted to do.
“With the help of OVR, I was on the same playing field with the other
students in my class. This made an enormous difference because they were
behind me from day one,” she says.
The counseling and guidance Jamie receive while a student at York College,
and then as a law student at Temple University’s James E. Beasley School of
Law in Philadelphia, was essential to her success. OVR helped Jamie to
choose the right prep course for the bar exam in 1999.
Finding a job, to her surprise, was easier than she thought. The summer
between her first and second years at Temple, she went to a career fair
where she met Steve Pennington, executive director of the PA Client
Assistance Program (CAP). He hired her to be a summer law clerk two years in
a row, and then hired her as an attorney after she passed the bar.
“I’ve got the best of both worlds - a law degree and a job I love working
directly with people with disabilities, Jamie says. “My experience with OVR
has come full circle. First I was a VR client, and now I get to assist other
VR clients who might hit a bump in the road, have a question or concern, or
just want to talk with someone who has dealt with these challenges before.”
When she’s not fulfilling the dream she had at age 11, Jamie has a different
kind of fun as part of a comedy improve group called “Too Many Lawyers” that
rehearses weekly and performs about once a month.
Keith Sargent, DO, Doctor of Osteopathy
Dr. Keith Sargent can empathize with his patients better than most. The 35
year old Delaware native says he experiences fear and pain and frustration
daily as a man who was born with cerebral palsy – a disability that impacts
body movement and muscle coordination – that affects his lower extremities.
Keith says he couldn’t walk until he was seven.
The Delaware VR Office started working with Keith in 1992 and “were very
helpful during that whole time” he was working on his undergraduate degree.
But with no identifiable job goals and difficulty finding work, Keith needed
VR again to help him realize his new dream of becoming a doctor. This, he
says with a laugh, made his the “longest case in the history of VR.”
Since he had been exposed to the field of osteopathic medicine through a
friend as an undergrad, Keith decided to apply to the Philadelphia College
of Osteopathic Medicine where he was accepted and attended for four years.
Osteopathic medicine uses a holistic approach to patient care that combines
traditional diagnostic and treatment measures with manipulative medicine
that helps to alleviate pain, restore motion and support the body’s natural
functions.
Keith graduated medical school in 2004 and completed his internship. He is
currently in the second year of a three year residency program in
osteopathic family medicine in Allentown, PA at Saint Luke’s Hospital.
There, he works in the osteopathic family medicine clinic and rotates
through different medical services.
“The biggest thing I got from VR, aside from financial assistance, was just
the idea that someone was going to talk to me about potential problems and
troubleshoot . James Carter my case manager, really seems to enjoy this. It
impresses me that he enjoys figuring out ways to do things,” he says. “You
get the sense that whatever you come up against, most likely is doable. I’m
just really glad to have VR in my corner.”
