LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 14, 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.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2086, As Introduced: 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 $965,957 * * 2003 1,078,452,438 * * 2004 1,186,505,803 * * 2005 1,290,848,770 * * 2006 1,393,074,173 * ***************************************************** Fiscal Analysis The bill would amend Section 201.082 of the Labor Code to increase the taxable wage base from $9,000 to $15,000 in increments of $1,000 per year. 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 was assumed. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, JO, HL, RT