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HomeMy WebLinkAboutAGENDA REPORT 2025 0917 CC REG ITEM 09A POWERPOINTSeparating Myths from Realities Challenges Undocumented Immigrants Face and Their Economic Impact in Ventura County A Presentation For the Moorpark City Council Jamshid Damooei, Ph.D. Professor and Executive Director of Center for Economics of Social Issues (CESI) Demographic Profile and Economic Impact of Undocumented Immigrants in Ventura County Ideas to Focus On, Findings to Share, and Conclusions to Reach Demographic Profile of Undocumented Immigrants in Ventura County Economic Impacts Tax Contribution Interconnectedness Between Undocumented Immigrants and Every Person in Our County and Beyond Integration of Undocumented Immigrants Is the Way Forward Demographic Profile: Undocumented Immigrants and Their Families in Ventura County Takeaways Undocumented families count for over 10% of the total Population of Ventura County. 42% of undocumented families were born in the United States. We need to think about the tragedy of separating children from their parents and other members of their families. Separation of family members is the greatest disinvestment in the lives of other children. 49,097 36,200 85,297 Number of people US citizen child under 18 years old living with undocumented parents Size of Family undocumented and Citizen Size of Undocumented Immigrants' Family in Ventura County 10.1% 42.4% Proportion of Famlies Over County's Population Proportion of U.S.-Born Living With Their Undocumented Parents Proportion of Undocumented Families Over Total County's Population and Living With US-Born Children Demographic Profile: Age & Race/Ethnicity Takeaways Primarily Latinos A small proportion of young or old Mainly in the working age Helping the County with its emerging and soon fast escalation of the older age population Improving the County’s dependency ratio both economically and for the long-term care needs of the County 1,280 103 44,412 168 3,109 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 White Black Latino Mixed/other Asian American Race and Ethnicity of Undocumented Immigrants in Ventura County 2,551 5,644 13,165 16,149 8,677 2,771 115 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Less than 18 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 and over Age of Undocumented Immigrants in Ventura County Demographic Profile: Undocumented Immigrants & Their English Language Isolation and Length of US Residency Takeaways Some 33% of households have English Language Isolation. Spanish is the predominant language spoken in the households of undocumented immigrants. Only a small proportion have been living in the US for less than 10 years. 78.3% for more than 10 years 31% for more than 20 years, and even 9% for longer than 30 years 4,650 14,091 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Number of Households that are Linguisically Isolated by Status Total Number of Undocumented Population Households Linguistic Isolation of Undocumented Immigrants in 2021 40,700 2,050 883 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Spanish South or Central American Indian languages Filipino, Tagalog Languages Spoken in Undocumented Immigrants Households in Ventura County 21.7% 78.3% 30.6% 8.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% % of Residency 10 years or less % or Residency 11 years or More % of Residency 21 years or More % of Residency More than 30 Years Year of US Residency of Undocumented Immigrants in Ventura County Industries of Employment Within Ventura County Takeaways A significant proportion is working in Agriculture, Retail Trade, Manufacturing, and Construction. However, their participation is not limited to one or a few industries. They have an active presence in the service sector. 12,789 3,530 3,943 560 1,464 5,980 482 1,802 966 499 3,477 Agriculture and Mining Construction Manufacturing Transportation, Warehousing annd Utilities Wholesale Trade Retail Trade Finance, insurance and real estate Professional Services Education and Health Services Information Other Services (except public administration) Industries of Employment of Undocumented Population in Ventura County, 2021 39.1% 8.4% 6.0% 2.3% 7.3% 9.1% 1.0% 2.1% 0.7% 3.0% 10.2% 0.0%10.0%20.0%30.0%40.0%50.0% Agriculture and Mining Construction Manufacturing Transportation, Warehousing and Utilities Wholesale Trade Retail Trade Finance, insurance and real estate Professional Services Education and Health Services Information Other Services (except public administration) Industries of Employment as a Proportion of Labor force in the Industry in Ventura County Economic Challenges & Lack of Affordability that Undocumented Immigrants Face in Ventura County Takeaways Undocumented workers are paid the lowest wage within the County. The low pay contributes to a high proportion of lack of affordability for a dignified life in the County. 73% of renters are burdened. 39% of renters, among them are severely burdened, which means they pay more than 50% of their income towards rent. This leaves very little for other necessities of their lives. $27 $31 $20 $14 $19 $27 $- $5 $10 $15 $20 $25 $30 $35 All U.S.-born Immigrant Undocumented Immigrant Lawful Resident Naturalized U.S. citizen Median Hourly Wage By Workers Immigration Status in Ventura County in 2021 73% 39% 46% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% Burdened Renters Severely Burdened Renters Burdened Owners Severely Burdened Housing Owners Housing Burden of Undocumented Immigrants in Ventura County Economic Impacts Takeaways Undocumented immigrants in Ventura County contribute $3.3 billion directly towards the County’s GDP, which accounts for 8.1% of its direct GDP. Taking into account the indirect and induced contribution to its total value added (county GDP), the amount reaches $5.1 billion or 12.3% of its total GDP in 2022. The contribution of undocumented immigrants is invaluable and significant. Value Added from IMPLAN Model, Data Year 2022, Dollar Year 2022 Direct Indirect Induced Total Value Added $ 3,313,820,782 $ 841,806,331 $ 915,709,216 $ 5,071,336,329 8.1% 91.9% Impact of Direct Value Added of Undocumented Immigrants Work over Ventura County Gross Domestic Products (GDP) Value Added by Undocumented Migrants over GDP Value Added by Everyone Except Undocumented Migrants over GDP 12.3% 87.7% Impact of Total Value Added of Undocumented Immigrants Work over Ventura County Gross Domestic Products (GDP) Value Added by Undocumented Migrants over GDP Value Added by Everyone Except Undocumented Migrants over GDP Economic Impacts Takeaways The contribution of undocumented immigrants to agriculture is impressive, and it is hard to imagine the country can have a viable agriculture without the contribution of undocumented immigrants. Manufacturing, construction, wholesale Trade, and Retail trades are other critical sectors that, without the contribution of undocumented immigrants they will be paralyzed. $859,226,308 $346,168,142 $522,508,417 $32,914,824 $468,802,851 $532,604,885 $58,305,380 $202,872,358 $69,019,809 $29,230,833 $192,166,974 Agriculture Construction Manufacturing Transportation & Warehousing Wholesale Trade Retail Trade Finance, Insurance and Real Estate Professional Services Education & Health Services Information Other Services Value Added of Undocumented Immigrants Work by Industry (Total Value Added Around $3.3 Billion) 57% 13% 10% 3% 11% 13% 1% 5% 2% 2% 11% Agriculture Construction Manufacturing Transportation & Warehousing Wholesale Trade Retail Trade Finance, Insurance and Real Estate Professional Services Education & Health Services Information Other Services Impact of Value Added of Undocumented Immigrants Work over Ventura County Gross Domestic Products (GDP) by Industry Economic Impacts Takeaways It is essential to recognize that direct impacts are only one of three impacts. We also need to consider the effects through industry linkages and their ripple effects, and the impact of spending by households. They are called indirect and induced. Examining induced and indirect effects reveals another critical issue: the interdependence among all economic entities within an economy. Undocumented immigrants through immigration and the induced creation of jobs for others contribute to higher production within the economy. . 35,492 70%$2,111,375,249 66%$3,313,820,782 65% $5,698,018,313 66% 15,569 30%$1,066,125,564 34%$1,757,515,547 35% $2,907,973,982 34% 0% 20% 40% 60% 80% 100% 120% Employment Impact Labor Income Value Added Output Impacts IMPLAN Employment Impact, Labor Income, Value Added and Output Impacts of Direct vs. Total and Indirect + Induced Over Total in Ventura County Direct over Total Indirect + Induced over Total Economic Impacts Takeaways Continue……. These are presented in the chart, and let us go through it. •Undocumented immigrants create more than 15.5 thousand additional jobs for others. •Their work results in almost $1.1 billion of additional labor income for others in the county. •Their work in total creates around $5.1 billion towards the county’s GDP, out of which $3.3 billion is due to their direct contribution. •Value added is the outcome of the direct contribution of undocumented immigrants. However, their work creates a much higher level of economic activities, which is measured by total output, which in the case of Ventura County is around $5.7 billion directly and another $2.9 billion through indirect and induced production. •Output in IMPLAN model shows the total economic activities that an entity or an industry generate (total value of production that occurred during a year). Labor income includes two parts. First, employee compensation is the total payroll cost of wage and salary employees to the employer. This includes wages and salaries, all benefits (e.g., health, retirement), and payroll taxes (both sides of social security, Unemployment insurance taxes, etc.). It is also referred to as a fully loaded payroll. The second part consists of Proprietor Income (PI). PI consists of payments received by self-employed individuals and unincorporated business owners. It represents the current production income of sole proprietorships, partnerships, and tax-exempt cooperatives. It includes the capital consumption allowance and is recorded on Federal Tax Form 1040C. It excludes dividends, monetary interest received by nonfinancial businesses, and rental income received by persons not primarily engaged in the real estate business. A net loss to the proprietor can result from labor income. Economic Impacts $859,226,308 $346,168,142 $522,508,417 $32,914,824 $468,802,851 $532,604,885 $58,305,380 $202,872,358 $69,019,809 $29,230,833 $192,166,974 Agriculture Construction Manufacturing Transportation & Warehousing Wholesale Trade Retail Trade Finance, Insurance and Real Estate Professional Services Education & Health Services Information Other Services Value Added of Undocumented Immigrants Work by Industry (Total Value Added Around $3.3 Billion) 57% 13% 10% 3% 11% 13% 1% 5% 2% 2% 11% Agriculture Construction Manufacturing Transportation & Warehousing Wholesale Trade Retail Trade Finance, Insurance and Real Estate Professional Services Education & Health Services Information Other Services Impact of Value Added of Undocumented Immigrants Work over Ventura County Gross Domestics Products (GDP) by Industry Takeaways The most significant contribution of undocumented immigrants is towards agriculture, which accounts for 57% of the total value added in that industry. Undocumented immigrants' contribution towards Retail Trade and Construction is more than half a billion dollars each. Wholesale Trade and Manufacturing have a significant place when it comes to the contribution of undocumented immigrants in Ventura County. Undocumented immigrants provide around 10% of other services within the county. Economic Impacts Agriculture Construction Manufacturi ng Transportatio n & Warehousing Wholesale Trade Retail Trade Finance, Insurance and Real Estate Professional Services Education & Health Services Information Other Services Induced 2193 1023 1611 93 608 1206 160 654 226 108 595 Indirect 638 908 2264 108 831 987 232 494 123 288 218 Direct 12789 3530 3943 560 1464 5980 482 1802 966 499 3477 Undocumented Immigrants IMPLAN Employment Impact in Ventura County Direct Indirect Induced Economic Impacts Agriculture Construction Manufacturing Transportation & Warehousing Wholesale Trade Retail Trade Finance, Insurance and Real Estate Professional Services Education & Health Services Information Other Services Induced $148,235,519 $69,133,053 $108,870,027 $6,312,361 $41,110,132 $81,478,053 $10,833,723 $44,203,463 $15,278,331 $7,264,235 $40,235,626 Indirect $42,961,733 $61,155,144 $159,422,255 $6,980,822 $56,874,062 $66,535,333 $17,036,577 $39,016,590 $9,178,494 $18,305,447 $15,704,582 Direct $631,419,328 $251,872,397 $335,895,982 $21,816,387 $130,792,167 $305,068,396 $31,662,026 $161,770,451 $60,818,992 $14,918,134 $165,340,988 Undocumented Immigrant IMPLAN Labor Income in Ventura County Direct Indirect Induced Tax Contribution Takeaways Some $333,408,405 has been generated in social security by undocumented immigrants themselves and their employers, which they can never see a dime of because of their immigration status. In brief, undocumented immigrants collectively subsidize citizens through the tax system because they pay many of the same taxes but are not eligible for many benefits – including social security entitlement, refundable tax credits, Pell grants, student loans, and nutrition programs. $168,505,486 $150,309,905 $7,203,973 $7,389,040 $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 Employee Contribution ($175,709,460)Employer Contribution ($157,698,946) Social Security and Other Payments that Undocumented Immigrants Pay and Never Receive Back (Direct Impact Only) ($333,408,405) Federal Tax - Employee Compensation State Tax Tax Contribution Takeaways This chart provides more information about the details of taxes paid by undocumented immigrants through their economic impacts and purchasing power. Overall, some $808,802,097 has been generated in various forms of taxation. These taxes are paid to various governments, and like other structures of taxation in California, a higher share of them goes to the federal government. Undocumented immigrants contribute to the county and subcounty levels in Ventura County. There are far greater amounts of tax that are paid to the county because of the economic contribution of undocumented immigrants through the respective industries. . $168,505,486 $7,203,973 $150,309,905 $7,389,040 $346,707,892 $123,107,034 $3,312,644 $1,032,301 $304,264 $929,557 $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000 $400,000,000 Federal Tax ($665,523,284) State Tax ($141,012,692) County Tax Sub County (General)Sub County (Special Districts) Social Security and Personal Taxes Paid by Undocumented Immigrants by Tax Level (Direct Impact Only) ($808,802,097) Social Insurance Tax - Employee Contribution ($175,709,460) Social Insurance Tax - Employer Contribution ($157,698,946) Personal Tax: Income Tax ($469,814,926) Personal Tax: Other Tax Combined ($5,5578,765) Tax Contribution Takeaways Undocumented immigrants contribute through their direct contributions and other channels related to their work far more than what they pay directly. We estimated it to be slightly higher than $1.6 billion. The employer's contribution is based on employees' work and should be considered a genuine contribution by the employee in its real economic sense. Employers' contribution towards social security is paid directly by them and by their employees. Undocumented immigrants use various ways of filing or paying without filing taxes. It is worth noting that self-employed individuals are eligible for certain tax deductions related to social security payments, which may affect the estimated tax payment mentioned above. According to the Institute on Taxation and Economic Policy (ITEP), various studies have estimated that between 50 and 75 percent of undocumented immigrants currently pay personal income taxes using either false Social Security (SSN) or individual tax identification (ITIN) numbers. According to IRS data, from 2015, the agency received 4.4 million income tax returns from workers who don’t have Social Security numbers, including many undocumented immigrants. In that year, they paid $23.6 billion in income taxes. That doesn’t even include workers who paid taxes with fake Social Security numbers on their W-2 forms, which is also common. Giving citizenship to undocumented immigrants increases tax revenue through increased earnings and full compliance with the tax code. $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000 $400,000,000 Employee Compensation (Employee Contribution) Employee Compensation (Employer Contribution) Proprietor Income Tax on Production and Imports Households Corporations Undocumented Immigrants Tax Impact in Its Largest Extent in Ventura County Federal Taxes State Taxes County Taxes Subcounty (General)Subcounty (Special Districts) Tax Impact Through Various Industries Agriculture Construction Manufacturing Transportation & Warehousing Wholesale Trade Retail Trade Finance, Insurance and Real Estate Professional Services Education & Health Services Information Other Services Induced $35,888,803 $16,737,611 $26,358,019 $1,528,257 $9,952,971 $19,726,313 $2,622,938 $10,701,951 $3,698,958 $1,758,701 $9,741,406 Indirect $10,571,957 $15,143,239 $39,682,678 $1,728,607 $13,830,735 $16,118,721 $4,132,880 $9,403,397 $2,238,139 $4,483,203 $3,850,236 Direct $145,837,117 $57,809,314 $81,013,726 $5,231,034 $42,000,013 $75,607,479 $7,710,174 $36,682,734 $13,775,940 $3,925,678 $36,013,450 Undocumented Immigrants IMPLAN Federal Taxes in Ventura County Direct Indirect Induced Tax Impact Through Various Industries Agriculture Construction Manufacturing Transportation & Warehousing Wholesale Trade Retail Trade Finance, Insurance and Real Estate Professional Services Education & Health Services Information Other Services Induced $17,970,983 $8,380,358 $13,201,141 $765,413 $4,985,130 $9,879,039 $1,312,958 $5,358,896 $1,852,765 $881,006 $4,876,019 Indirect $5,375,756 $9,500,565 $22,702,546 $1,090,115 $6,565,570 $7,356,814 $1,975,205 $4,076,529 $1,056,750 $2,098,777 $1,976,294 Direct $45,243,701 $17,586,300 $36,796,135 $1,639,362 $127,938,199 $75,668,654 $4,186,335 $10,632,066 $3,274,123 $2,530,090 $19,284,628 Undocumented Immigrants IMPLAN State Taxes in Ventura County Direct Indirect Induced Tax Impact Through Various Industries Agriculture Construction Manufacturing Transportation & Warehousing Wholesale Trade Retail Trade Finance, Insurance and Real Estate Professional Services Education & Health Services Information Other Services Induced $4,459,488 $2,079,358 $3,276,542 $189,977 $1,237,392 $2,451,812 $325,690 $1,329,805 $459,906 $218,714 $1,209,481 Indirect $1,271,796 $2,805,676 $6,100,079 $319,455 $1,452,631 $1,532,852 $423,561 $805,344 $228,781 $455,635 $475,232 Direct $4,810,396 $1,551,897 $8,262,361 $144,677 $60,307,217 $29,579,043 $960,311 $1,069,938 $178,566 $740,549 $5,995,837 Undocumented Immigrants IMPLAN Local Taxes in Ventura County Direct Indirect Induced Tax Impact Through Various Industries Takeaways •Using IMPLAN helped us to go beyond basic tax data and measure the impact through the ripple effects of economic activities. This allowed us to measure the direct tax contributions by businesses and their employees, to the indirect tax revenue generated through the supply chain and household spending. •This includes taxes such as: •Taxes remitted by businesses, such as employer-paid payroll taxes, sales taxes, property taxes, excise taxes, severance taxes, corporate profits taxes, and more. •Taxes paid by households, such as employee-paid payroll taxes, personal income taxes, personal property taxes, and more. •By breaking down the different types of taxes and their sources, we can understand how economic events translate into public revenue. •As can be deduced from the previous set of data, undocumented immigrants, through their presence and work, contribute far more to the creation of taxes at every level of government. •The data show that the majority of tax revenue ends up in the hands of the federal government. •There are, however, tens of millions of dollars that end up going to the state, the county, and even local governments. Interconnectedness Between Undocumented Immigrants and Every Resident in Ventura County It is hard to imagine Ventura County and the well-being of its residents without its vibrant and resourceful immigrants. 42% of undocumented families in Ventura County were born in the United States. We need to think about the tragedy of separating children from their parents and other members of their families. Separation of family members is the greatest disinvestment in the lives of our children. 78.3% for more than 10 years 31% for more than 20 years, and even 9% for longer than 30 years Undocumented workers are paid the lowest wage within the County. The low pay contributes to a high proportion of lack of affordability for a dignified life in the County. Undocumented immigrants in Ventura County contribute $3.3 billion directly towards the County’s GDP, which accounts for 8.1% of its GDP. Interconnectedness Between Undocumented Immigrants and Every Resident in Ventura County Considering the indirect and induced contribution to its total value added (county GDP), the amount reaches $5.1 billion, or 12.3% of its total GDP, in 2022. Some $333,408,405 has been generated in social security by undocumented immigrants themselves and their employers, which they can never see a dime of because of their immigration status. Overall, some $808,802,097 has been generated in various forms of taxation. Undocumented immigrants contribute through their direct contributions and other channels related to their work far more than what they pay directly. We estimated it to be slightly higher than $1.6 billion. The employer's contribution is based on employees' work and should be considered a genuine contribution by the employee in its true economic sense. There is no doubt that undocumented immigrants are not a burden on the economy. On the contrary, they accept the lowest pay, the most challenging jobs (mostly), and pay far more tax than they ever utilize any services that the government provides. Tens of thousands of them in Ventura County lived here for one or more decades, and some even longer than three decades. How to Help Now and Bring Possible Integration of Undocumented Immigrants in California Providing training for businesses, groups, and individuals on how to utilize their legal protection in support of undocumented immigrants in facing ICE. Learn from the successful practices that are already in place in some jurisdictions. Directing efforts towards social and economic inclusion. Legal and financial support can be achieved by creating financial facilities, educational possibilities, overcoming language barriers, and other efforts to bring greater support. Work towards changing the most apparent and damaging distances created through an image of an undocumented immigrant in our communities. Learn the facts and separate them from fiction. Be mindful of the fact that immigration and undocumented immigrants serve as scapegoats, and it is rather unfortunate that undocumented immigrants are perceived as criminals and economic burdens on society. How to Bring Integration of Undocumented Immigrants in California As for the Near Future, Take the Following Steps We need to look into a model of Anti-Oppressive Practice in the work that needs to be done. The core of this approach is to break down and overcome the existing oppressive prevailing system that brings isolation and disenfranchises those impacted. Oppression is pervasive and, for many, hard to see or recognize It helps us to understand the root of racism, sexism, and all existing forms of phobias. This task should be a part of any DEIJ. Bring Anti-Oppressive Practice in all DEIJs and use such an office to bring attention to the plight of undocumented immigrants as an essential area of their focus. Set up and engage the entire community in organizing and facilitating community hearings. Involve law enforcement, relevant government offices, and non-profits in community conversations. Look for resources and promote studies and data gathering on undocumented immigrants and their social and economic impacts in every region and community. Bring a much greater level of information gathering and dissemination about relevant issues and their development within the states and its various geographic locations. Help secure undocumented immigrants so they can feel protected and come out and have a more significant presence in the life of their community. The End Thank You Questions and Answers