LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 26, 2001
TO: Honorable Jim Solis, Chair, House Committee on Economic
Development
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2086 by Yarbrough (Relating to wages used to compute
unemployment compensation taxes.), Committee Report 1st
House, as amended
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2086, Committee Report 1st House, as amended: positive impact *
* of $0 through the biennium ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* Unemployment Compensation *
* Clearance Account *
* 0936 *
* 2002 $70,096,619 *
* 2003 112,495,126 *
* 2004 109,427,386 *
* 2005 109,427,386 *
* 2006 109,427,386 *
*****************************************************
Fiscal Analysis
The bill would amend Section 201.082 of the Labor Code to increase the
taxable wage base from $9,000 to $12,000 in increments of $1,000 per
year. The fiscal impact estimate from the Texas Workforce Commission now
reflects only the increase in unemployment insurance tax revenue from the
change in the taxable wage base. The prior estimate reflected the total
amount of tax revenue in the Unemployment Insurance Trust Fund.
If enacted, the bill would take effect September 1, 2001.
Methodology
An increase in the taxable wage base would result in an increase in
revenue to the Unemployment Insurance Trust Fund. The floor and ceiling
of the fund would also increase. A three percent growth rate in taxable
wages is assumed.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 320 Texas Workforce Commission
LBB Staff: JK, JO, RT, HL