51 Chapter 3: Investment analysis associated with smoking, alcohol dependence, obesity, depression, and drug abuse. In addition to avoided costs to the justice system, crime savings also consist of avoided victim costs and benefits stemming from the added productivity of individuals who otherwise would have been incarcerated. Income assistance savings are comprised of the avoided government costs due to the reduced number of welfare and unemployment insurance claims. Table 3.5 displays the results of the analysis. The first row shows the increased economic base in the state, equal to $910.6 million, from students’ higher earnings and their multiplier effects, increases in non-labor income, and spending impacts. Social savings appear next, beginning with a breakdown of savings related to health. These include savings due to a reduced demand for medical treatment and social services, improved worker productivity and reduced absenteeism, and a reduced number of vehicle crashes and fires induced by alcohol or smoking-related incidents. Although the prevalence of these health conditions generally declines as individuals attain higher levels of education, prevalence rates are sometimes higher for individuals with certain levels of education. For example, adults with college degrees may be more likely to spend more on alcohol and become dependent on alcohol. Thus, in some cases the social savings associated with a health factor can be negative. Nevertheless, the overall health savings for society are positive, amounting to $7 million. Crime savings amount to $5.2 million, including savings associated with a reduced number of crime victims, added worker productivity, and reduced expenditures for police and law enforcement, courts and administration of justice, and corrective services. Finally, Table 3.5: Present value of the future increased economic base and social savings in the state (thousands) Increased economic base $910,633 Social savings Health Smoking $10,957 Alcohol dependence -$3,214 Obesity $1,819 Depression -$2,632 Drug abuse $67 Total health savings* $6,997 Crime Criminal justice system savings $4,871 Crime victim savings $48 Added productivity $276 Total crime savings $5,195 Income assistance Welfare savings $4,854 Unemployment savings $1,667 Total income assistance savings $6,521 Total social savings $18,713 Total, increased economic base + social savings $929,346 * In some cases, health savings may be negative. This is due to increased prevalence rates at certain education levels. Source: Lightcast impact model.
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