LIIF Estimates $1 Trillion in Benefits from Administration Budget
LIIF Analysis Demonstrates High Social Return on Administration’s Budget Proposal
A new analysis by the Low Income Investment Fund (LIIF) of the Obama Administration’s fiscal year (FY) 2017 budget estimates a yield of $860 billion in social benefits from the $150 billion investment the President proposes in new housing vouchers for homeless families, early childhood interventions and universal preschool over the next decade —a nearly six-fold return on investment.
“The Low Income Investment Fund is focused on investing in what works to improve the lives of children and families. LIIF leverages public investment in distressed neighborhoods with private sector resources to make every dollar go further. We developed the Social Impact Calculator as a way to monetize the impact of our own investments in sectors like affordable housing and early education,” said LIIF’s President and CEO, Nancy Andrews. “President Obama’s call for expanded spending on poor families and children is ambitious, but is based on investing in effective solutions that help people climb out of poverty. Our analysis using the Social Impact Calculator demonstrates that these are smart long-term investments that will create nearly $1 trillion in social value for our nation.”
LIIF’s Social Impact Calculator is an innovative, open-source online tool that uses an “impact by proxy” approach that leverages social science research to translate basic project data into forward projections of monetary social value. LIIF used its Social Impact Calculator to estimate the present-day value of social benefits from the President’s proposed increases in housing and childhood investments over the next 10 years—including greater household savings and food purchases, higher levels of educational attainment and long-term earnings, and reduced government expenditures on interventions related to criminal justice, health, and welfare.