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2.2.3 Estimation of Benefits A conservative approach was used to estimate benefits. For respondents who failed to provide sufficient information, the data used from the sample of respondents is unlikely to result in an overestimate of benefits. In keeping with this conservative approach, reduction in government support was not included in the calculation of overall benefits because the information provided by respondents on this topic was scant. Each of the remaining two benefits was calculated individually for each qualified case (survey respondent). The benefits were then summed across all qualified cases to calculate the total benefits. The general procedure for calculating each of the benefits (excluding the benefit from reduction in public support) from the sample of Santa Ana WORK Center clients is discussed below and the detailed calculation procedure is provided in Appendix D. Additional Tax Revenue from Santa Ana WORK Center Clients — This tax revenue comes from four sources: • Payroll Tax • Federal Income Tax • State Income Tax • Sales Tax The tax rate data provided in the Phase I and Phase II ROI studies was utilized here. Sales tax was applied to the fraction of the annual income estimated as spent on taxable goods and services. Additional tax revenue was calculated by subtracting the tax revenue from income from the previous job (zero for those respondents who were unemployed) from tax revenue from income from new job. Additional Tax Revenue from the Community — The change in the income of the community due to change in income of Santa Ana WORK Center clients was estimated using an income multiplier. The Phase I ROI study estimated the value of the income multiplier to lie between 1.6 and 2.0. For the Phase II RO1, the lower bound of 1.6 was used. This means that the change in the income of the community was 60% of the amount of change in Santa Ana WORK Center clients' incomes. Ilowever, since the U.S. economy has been in a severe economic recession since December 2007, many firms have laid off workers resulting in higher unemployment. In addition, there are significantly fewer jobs available. As a result, consumer spending has fallen significantly so that the income multipliers used in the previous ROI studies are no longer valid and would provide an overestimate of the income of the community. Consequently, for the Phase III ROI, the income multiplier was set to 1.3. The G •l NO-19.]