About ACHIEVEability
Marcus' Corner

The Local Economic Impact of ACHIEVEability

According to a June 2011 Econsult report, ACHIEVEability’s impact is not only on individuals and families, but also on the City of Philadelphia (“the City”) and the Commonwealth of Pennsylvania (“the Commonwealth”) as a whole, and the impact is also economic in nature.

ACHIEVEability’s work generates a significant economic return to the families it serves, in the form of increased earnings amd decreased reliance on public subsidies. It also generates a significant economic return to the City and the Commonwealth as a whole, in the form of household wealth gains, jobs created, government, expenditures on public subsidies reduced, tax revenues generated, and retail corridors strengthened.

Construction Projects have a multiplier effect

Each dollar spent by ACHIEVEability on its construction projects has a multiplier effect, in the form of household wealth gains to individual property owners, property tax revenues for the City and the School District, and economic and fiscal impacts within the City and the Commonwealth.

Each $1 million invested in ACHIEVEability’s construction projects since 1984 has generated:

  • About $11 million in household wealth gains, and potentially upwards of about $300,000 in tax revenues for the City and School District.
  • About $2.5 million in total economic impact within the Commonwealth, supporting about 20 jobs, of which $1.5 million of that total economic impact and about 6 of those jobs are within the City.
  • About $15,000 in local tax revenues and about $55,000 in state tax revenues.

Operating Budget expenditures have a multiplier effect

Furthermore, each dollar spent by ACHIEVEability on its annual operating budget has a multiplier effect, in terms of economic and fiscal impacts within the City and the Commonwealth, as well as of increased earnings for ACHIEVEability families and increased net government contributions by ACHIEVEability families.

Each $1 million invested in ACHIEVEability’s operating budget each year generates:

  • About $2.2 million in total economic impact within which $1.6 million of that total economic impact and about 30 of those jobs are within the City.
  • About $100,000 in aggregate additional earnings each year in perpetuity for ACHIEVEability families, and about $45,000 in aggregate net government resources contributed in perpetuity by ACHIEVEability families. At an individual family level, this can be expressed as follows - over a 10-year period, each family earns $63,000 more, pays $10,000 more in taxes, and receives $17,000 less in public subsudies, for a net gain of $36,000 per year to the family. For each family, in various government jurisdictions pay out $17,000 less in public subsidies and receive $10,000 more in taxes, for a net gain of $27,000 to the governments.
  • About $85,000 in local tax revenues and about $50,000 in state tax revenues.

Property Value Impact

ACHIEVEability’s construction work replaces blighted structures and vacant lots with new homes, which has a dramatic effect on the stability and value of the neighborhoods in which this work takes place. This property value impact is estimated at $300 million more in household wealth, potentially representing $8 million more per year in property tax revenues to the City and for the School District of Philadelphia (“the School District”).

Construction Impact

ACHIEVEability’s construction work in local communities represents net new infusions of construction activity and related employment, which result in further local stimulus as additional materials are purchased and as wages are spent.

Over $27 million in construction projects is estimated to have generated about $40 million in total one‐time economic impact within the City, supporting about 170 jobs and generating about $400,000 in City taxes and about $67 million in total onetime economic impact within the Commonwealth, supporting about 580 jobs and generating about $1.5 million in Commonwealth taxes.

Operating Impact

ACHIEVEability’s annual operating expenditures also represent net new infusions of local spending, in the form of salaries paid and goods and services purchased for programmatic offerings, property management, and administrative oversight.

ACHIEVEability’s operating expenditures are estimated to generate about $4 million in total economic impact within the City per year, supporting about 80 jobs and about $130,000 in City taxes, and about $6 million in total economic impact within the Commonwealth per year, supporting about 100 jobs and generating about $220,000 in Commonwealth taxes.