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News (Media Awareness Project) - US OK: Substance Abuse Costs State $76 Billion, Study Says
Title:US OK: Substance Abuse Costs State $76 Billion, Study Says
Published On:1998-04-01
Source:Oklahoman, The (OK)
Fetched On:2008-09-07 12:47:42
SUBSTANCE ABUSE COSTS STATE $7.6 BILLION, STUDY SAYS

Alcohol abuse and illegal drug use in Oklahoma have an annual negative
economic impact of $7.6 billion -- the equivalent of 13 percent of the
state's economy, state researchers said Tuesday.

''It costs every household in the state ... over $1,000 a year'' in
federal, state and local taxes, said Michael Lapolla, director of the
Center for Health Policy Research at Oklahoma State University.

Lapolla presented the study, ''Everyone Pays,'' to the Governor's Task
Force on Substance Abuse, which had requested the report.

Task force Chairman Bill Crowell said the panel plans to release its
recommendations in a couple weeks.

About $5.8 billion of the effect is in the ''lost productivity'' of illegal
drug users and alcohol abusers, the study says.

''Our estimate is that 61 percent of lost productivity is due to alcohol,
37 percent due to illegal drugs,'' Lapolla said.

The study says that when people become disabled and nonproductive, they
hurt the economy .

''We assumed that these costs are equally distributed in the population
rather than being concentrated at the lower income levels,'' the
researchers wrote.

''Therefore, we assumed lost wages to be the state median income rather
than the minimum wage.''

Federal taxpayers pay $860 million of the cost in Oklahoma, while state
taxes cover $330 million , and local taxes take care of $130 million , the
researchers say.

The state taxes attributable to alcohol and drug abuse accounted for more
than 7 percent of state taxes collected in 1996, the report said.

Lapolla said Oklahoma private businesses lose $547 million through security
costs, theft, vandalism and similar problems.

More than 7 percent of all hospital costs are attributable to alcohol and
illegal substances, researchers said.

''There are some who may argue that the use of drugs is a 'victimless'
crime. And that if others choose to use drugs it doesn't impact the rest of
society,'' the study's executive summary states.

''That would be true if family, friends, and taxpayers were not considered.''

The report says alcohol abusers and illegal drug users ''write 'checks' for
almost a third of a billion dollars against the Oklahoma treasury ... and
for much more against the federal government, private business and overall
economy.''

Of the costs estimated in the report, ''none calculate the adverse effects
upon individuals, family or friends,'' the study says.
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