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