LEGISLATIVE BUDGET BOARD
Austin, Texas
 
SUPPLEMENTAL INFORMATION REGARDING ECONOMIC EFFECTS OF TAX CHANGES
 
78TH LEGISLATURE 4TH CALLED SESSION - 2004
 
May 4, 2004

TO:
Honorable Tom Craddick, Speaker of the House, House of Representatives
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB1 by Grusendorf (Relating to public education, public school finance, and related matters, including certain new or modified taxes and fees, the authorization of a state video lottery system, and other state and local tax and revenue measures to provide sufficient funding for public education and to provide tax relief and protection for taxpayers; providing penalties.), Committee Report 1st House, Substituted

THE FOLLOWING NEW INFORMATION IS PROVIDED BY COMPTROLLER OF PUBLIC ACCOUNTS



The following new information was supplied by agency 304 COMPTROLLER OF PUB ACCTS:

Comptroller of Public Accounts

Dynamic Fiscal Note Analysis

 

 

 

For: CSHB1 by Grusendorf

Date: May 1, 2004

 

 

I. Revenue Impact Analysis, 2005-2009

 

 

Fiscal

Year

Gain/(Loss) to General

Revenue-Related Funds

 

Dynamic Feedback

Revenue Effect

Net Gain/(Loss) to General

Revenue-Related Funds

2005

$1,749,110,733

$40,606,000

$1,789,716,733

2006

5,133,268,702

309,836,000

5,443,104,702

2007

5,354,994,295

304,919,000

5,659,913,295

2008

5,501,133,200

321,751,000

5,822,884,200

2009

5,816,800,353

462,663,000

6,279,463,353

 

II. Economic Impact Analysis, 2005-2009

 

 

Fiscal

Year

Increase/(Decrease) in

Texas Personal Income

Increase/(Decrease) in

Texas Investment

Increase/(Decrease) in

Texas Employment

2005

$392,600,000

$3,220,618,000

$5,300

2006

6,978,000,000

16,082,424,000

161,300

2007

6,654,000,000

14,920,297,000

137,300

2008

6,100,000,000

13,528,427,000

114,100

2009

5,205,000,000

11,869,516,000

88,000

 

III. Economic Implications after 2009

After ten years, in 2014:

Personal Income

$1,773,000,000

Investment

$7,766,400,000

Employment

19,000

 

 

 

IV. Methodology

A Texas-specific general equilibrium model was employed in calculating the economic impacts. The model distributes the savings that would otherwise have been paid by businesses and consumers among the state's economic sectors. The revenue feedback calculation was based on the historical relationship between state tax revenues and associated economic factors.



Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
JK, SD, SJS