Study: Immigrants Add To State's Bottom Line
Arkansas Host to Fastest Hispanic Immigrant Growth in Nation
Last updated Wednesday, April 4, 2007 8:49 PM CDT in News
By Don Dailey
The Morning News
BENTONVILLE -- Immigrants in Benton and Washington counties contributed $6.1 million to the state budget's bottom line in 2004, a study released this week shows.
The study, commissioned by the Winthrop Rockefeller Foundation and conducted by the Urban Institute in Washington, D.C., also showed Arkansas had the fastest-growing Hispanic population between 2000 and 2005, and about 51 percent of immigrants in the state are undocumented.
The study is the first to take an in-depth look at the demographic characteristics and economic impact of immigration on Arkansas, a state that saw a 37 percent growth in immigrants during the first half of this decade to about 123,000.
Northwest Arkansas experienced even higher immigrant growth rates. Benton and Washington counties saw 106 percent and 57 percent growth to 20,296 and 18,414 respectively, the study found.
Bill Rahn, senior program manager with the Rockefeller Foundation, said the organization conducted the study to gather real numbers about a much-debated issue.
"We know there's this huge growth," Rahn said. "It's new to Arkansas and has a big impact."
He said the organization is not using the study to take a political position on immigration.
The study used data from the 2000 Census and surveys conducted in 2005 by the Census Bureau in addition to information from the Arkansas Department of Education. The study included the U.S. born children of immigrants as immigrants themselves, even though they are U.S. citizens.
Rahn and four of the study's authors presented the findings Wednesday at NorthWest Arkansas Community College to a large audience made up of mostly Hispanic community leaders from Benton and Washington counties.
Steven Camarota, director of research at the Center for Immigration Studies, a Washington, D.C., think tank that advocates immigration reform, said the Urban Institute generally takes a view sympathetic to immigrants and their employers.
The Rockefeller Foundation study says immigrants are replacing native workers at the lower wage levels as those better-educated native workers move into higher-paying jobs, but Camarota said studies by his organization show a different dynamic.
"What seems to be happening is natives in those skill categories are leaving the work force, so that seems to indicate they are being crowded out," Camarota said.
James Johnson Jr., a co-author of the Rockefeller study, admitted there seems to be a national preference by employers for immigrant labor, fueled by the immigrants' willingness to work long hours for lower pay and their tendency to stay longer in those jobs.
"Are they being exploited, yes, probably, but there's something about an immigrant where the glass is always half full," Johnson said.
Immigrants impact the state beyond the money they are paid and the cost of providing government services, the authors said.
"The reality is their presence indirectly creates tax revenues and jobs" among the native-born population, said Everett Henderson, one of the authors.
The study found immigrants' economic impact in the state was about $3 billion in 2004. The total includes a 20 percent reduction in immigrant buying power to account for wages sent out of the country. The economic impact is the total contributions from immigrants, including consumer spending and taxes, and costs, including education, health service delivery and imprisonment.
The difference between costs and contributions resulted in a $19 million -- $158 per immigrant -- addition to the state's budget, the study said.
In Washington and Benton counties, the economic impact was $749 million.
The study also looked at immigrant family life in Arkansas and found the state's immigrants are predominately from Mexico and Central America and the state had the fastest-growing Hispanic population in the nation between 2000 and 2005 at 48 percent.
More than half the immigrants in Arkansas are in the country illegally. Nationally, 3 in 10 immigrants are unauthorized with about half of those having overstayed a visa.
"In this part of the country it's more likely the larger share came across the (Mexican) border" without permission, said Randy Capps, one of the studies authors.
Capps said the high number of illegal immigrants can be attributed to the high level of recent immigration and the fact that most immigrants come from Mexico and Latin America.
Naturalized citizens, the only immigrants eligible to vote, make up 23 percent of the immigrant population, limiting their political clout.
"A big change from Congress making undocumented immigrants citizens will have to happen before immigrants get any political power," Capps said.
Highlights
Key findings of the Winthrop Rockefeller Foundation's profile of immigrants in Arkansas.
* Arkansas had the fourth-fastest-growing immigrant population nationwide between 1990 and 2000: 196 percent.
* About half of Arkansas immigrants, or 62,730, are in the state illegally; most come to the state for work.
* Four counties, Benton, Washington, Sebastian and Pulaski, are home to 63 percent of the state's immigrants.
* Children in immigrant families are more likely than those in native-born families to live with two parents.
* Students with limited English proficiency are concentrated in a handful of districts, mostly in western and Northwest Arkansas.
* The economic impact of immigrants on the Arkansas economy is about $3 billion.
* Immigrant purchasing power is only partially tapped in many localities.
Web Watch
The entire study can be seen at
www.wrfoundation.org/index.php?page=resources&sub=publications
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