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Posted: April 27, 2011

True or false: Undocumented workers drain state resources

Answer: They give as much as they get

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New research shows that undocumented immigrants in Colorado are a significant contributor to the state's economy and contribute as much in sales, property and income taxes as they cost in K-12 education and other mandated services.

The population of undocumented immigrants in Colorado has declined in recent years, tracking the downturn in the economy, but the debate over immigration has only grown more heated. Some of the heat generated in that debate comes from claims that undocumented immigrants take jobs and overburden state resources.

Research conducted by the Bell Policy Center and the Colorado Center on Law and Policy finds that:

• Undocumented immigrants account for 5 percent of the state's workforce and 3 percent of state personal income, and these workers produce 7 percent of Colorado's economic output, according to Undocumented immigrant workers in Colorado play an important role in the state's economy, by the Colorado Center on Law and Policy.

• Economic activity generated by undocumented immigrant households accounts for an additional 91,000 jobs statewide, $4.7 billion in personal income and $15 billion in industry output.

• Undocumented immigrants paid an estimated $167.5 million in income, property and sales taxes in 2010, which covered the cost of K-12 education, emergency medical care and jail and prison incarceration, according Colorado's undocumented workers: What they pay, what they cost in taxes, by the Bell Policy Center. The cost of those federally mandated services is $166.6 million.

The Bell Policy Center conducted similar research in 2006 and found undocumented immigrant households paid $159 million to $194 million in total taxes, while the cost for mandated services was about $225 million. Since 2006, the average income of undocumented households has risen, generating more tax dollars for the state. Also, the number of undocumented immigrants, especially the number of school-age children, has declined in the past five years.

"This analysis clearly shows that claims that undocumented immigrants are the cause of our budget problems are way off base," said Rich Jones, director of policy and research at the Bell Policy Center. "They are not eligible for and do not receive most government services. In fact, they pay enough in taxes to cover the costs of providing federally mandated services to them."

"Labor by undocumented immigrants ripples through all parts of Colorado's economy," said Alec Harris, a policy analyst for the Colorado Center on Law and Policy. "Like all groups of workers, undocumented immigrant workers spend their earnings, which supports local businesses, enabling those companies to hire more workers. It's a positive cycle that stimulates the state's economy."

Other findings:

• In Colorado, for every job held by an undocumented immigrant, 0.8 jobs are created.

• Undocumented immigrants work mostly in construction, services, leisure and hospitality and manufacturing.

• Colorado had an estimated 15,763 undocumented students between 5 and 17 years old; funding for them represents less than 2 percent of total state and local K-12 spending.

• Colorado spent $26.5 million to provide emergency medical care to non-citizens in 2010-11 (not all of whom were undocumented immigrants). That total represents just over 0.5 percent of the state budget for health care.

• The net cost of holding undocumented immigrants in jails and prisons in Colorado was $32.5 million in 2009, or about 4.2 percent of the state budget for prisons.

• Undocumented immigrants live in our communities, and like all Colorado consumers pay sales taxes on the goods they buy. In 2010, this amounted to $114.6 million.

• Undocumented immigrants also paid $30.9 million in property taxes, mostly as part of their rent payments.

• Undocumented immigrants have $30.9 million in income taxes withheld from paychecks.

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Readers Respond

Nathan, I agree that there are laws that need to be changed or repealed. However, I think we are creating a bad precedence by not enforcing immigration laws on those who are already in this country. It does not create much of a deterrent when the government decides to look the other way. With regards to good people, I have a hard time considering those who enter illegally or knowingly receive forged documents as being "Good People." I do feel sorry for their children, but the blame should still be cast on the parents. By John Gimple on 2011 05 02
John, I fully understand that undocumented immigrants came to this country illegally, but we are where we are, so we have 3 choices: 1) Spend immense resources trying to deport 12 million people. 2) Keep 12 million people working in the shadows (in the conditions you describe in your post), or 3) Changing the system as there so that if you are working and paying your taxes and staying out of trouble, there is a path to citizenship for you. I see the first two as net losses for America, and the third as a net gain, since immigrants as a whole are some of the most entrepreneurial, job-creating Americans. We have had MANY bad laws and policies in this country over the last 200+ years (not that I am old enough to remember all of them). Let's change bad laws before harming good people. By Nathan Stern on 2011 04 30
Nathan, The world is made up of countries with borders and laws. Illegal aliens are here in this country against the LAW. They are here because they either sneaked across the border or used visas that lied about their intent. Then they obtain jobs illegally by using forged documents or working for cash by equally sleazy companies. How fair are they to their own countrymen that following the proper process to enter the country and become U.S. Citizens? Are you old enough to remember when it was high school students and retirees that worked in the fast food industry? Have you looked at the unemployment figures for these groups? There is a right way and a wrong way to be in this country. They should spend their efforts on correcting what is wrong in their own country. By John Gimple on 2011 04 28
There's no such thing as an illegal human being, and sometimes it's the system that's wrong. Whether it's nonsensical quotas or other anacronisms, it's about time we rewarded people who work hard to contribute to this country. I think we have about 1,000,000 better things to do when we have a huge deficit than running around trying to deport people who are boosting our economy. Choose to live a life of love, and you too will be rewarded. By Nathan Stern on 2011 04 27
The same fake documents that get them employment also get them services that they supposedly aren't entitled to. This whole article is based on a lot of assumptions. If they are undocumented, where are the studies getting the data? Does the study take into account ESL teachers or printing documents and forms in both English and Spanish? By John Gimple on 2011 04 27
You fail to touch on expenses given to illegal immigrant households which take in welfair, food stamps, and other government subsidies (also known as freebies, or handouts.) While illegal immigrants themselves cannot qualify for these benefits, or should not be able to although I'm positive many do, the anchor babies they come to the US to deliver certainly make them qualifiable. What is the total expenses for government subsidies such as welfare and food stamps given to illegal immigrant households in the state of Colorado? many many tens of millions I presume By Nate on 2011 04 27
Contribution to the economy does not justify illegal actions no matter what angle you view it from. Sorry, not drinking the koolaid. Should we give identity thieves a pass because the money they steal pays sales tax when they spend it? By Sue Hintze on 2011 04 27
They are not "undocumented workers", they are illegal immigrants who came across out borders illegally and should be located and deported, the same as another country would do to you and me if we entered their country illegally. Face the facts for God's sake and get off your goody good liberal bandwagon. By Bill Kuhnlein on 2011 04 27

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