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Illegal immigrants cost millions in N.J. tax dollars

By JOHN FROONJIAN Special Reports Unit, (609) 292-7206
Published: Sunday, January 28, 2007


Press photo by David Benson
Sandra, and her 3-year-old nephew, Daniel, took part a demonstration in Washington calling for more rights for undocumented workers.


The illicit nature of the underground economy makes it impossible to precisely document its size. But illegal immigration clearly costs New Jersey hundreds of millions of dollars a year.

One national group, the Federation for American Immigration Reform, claims all levels of government combined spend more $1.6 billion a year on illegal immigrants in New Jersey. That's a loose estimate based on studies done in other high-immigrant states.

Estimates from the state, other sources and Press of Atlantic City analysis suggest more than $750 million a year is spent on education, health care, food stamps and other programs.

New Jersey state and local governments spend more than $10,000 per pupil on education. About 40,000 children of illegal immigrants attend school here, according to state legislative estimates. So government spends at least $400 million educating those children. Press analysis of recent illegal immigrant numbers suggests that the student population is closer to 45,000, costing $450 million or more for their education.

The New Jersey Hospital Association estimates that member hospitals provide $257 million a year to treat in-patient illegal immigrants. The hospitals' estimate does not include patients treated in emergency rooms and released. So the price tag for medical treatment of illegal immigrants is higher.

Illegal immigrants do not qualify for welfare, but if they have children in this country, the children are citizens eligible for food stamps. The Center for Immigration Studies estimates that 12 percent of illegal immigrant households in New Jersey receive food stamps. Using an average U.S. household benefit of $213 a month, the annual cost in New Jersey would be around $50 million.

The state pays other expenses that are hard to quantify.
Critics claim there are huge outlays for imprisoning immigrants convicted of crimes. New Jersey pays about $55 million to imprison about 1,900 immigrants. But there is no way to know how many of those prisoners have papers. A state corrections spokesman said illegal immigrant criminals are generally deported.

Still, there are expenses. Some illegal immigrants do end up in state prisons, and others are housed in county jails. It costs tax dollars simply to arrest and process criminals.

Some illegal immigrants do pay taxes. Their Social Security numbers may be phony, but income taxes are deducted. However, many pay nothing. That's especially true of day laborers paid in cash. A 1997 State Commission of Investigation report said millions of tax dollars go uncollected. The shadowy nature of working off the books makes it tough to reasonably estimate lost taxes.

Other costs created by illegal immigrants include school lunches, translation services used by courts, government and medical services, bilingual education and covering accidents caused by uninsured motorists.

Then there is the impact to the overall economy of disappearing dollars.
Many immigrants send money to families back home. The Inter-American Development Bank estimated in October that nationwide, Latin American immigrants send $45 billion a year to their native countries. Immigrants send an average of $300 a month. Many send more.

The Press estimated that if 70 percent of illegal immigrants working in New Jersey send $300 a month home, about $59 million a month is being taken out of the state's economy. That would mean more than $705 million a year is taken out of circulation.

Rutgers economist Bill Rodgers said any money that leaves the country has an impact because it is not spent and reinvested in local businesses.