Fiscal Notes: July 2011

8/6/2019 Fiscal Notes: July 2011

1/11

JUNE REVENUE (iN millioNs): sAlEs TAX: $1,731.0 oil PRoDUCTioN: $155.3 NATURAl GAs: $71.2 moToR FUEls: $264.6 moToR VEHiClE sAlEs: $272.0 ToBACCo: $137.4

I n s I d e s t o r I e s

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A Review of the Texas Economy from the Ofce of Susan Combs, Texas Comptroller of Public AccountsJuly 201

An Interview with PunditGlenn ReynoldsSEE PAGE 10

BubbeABubbeiHigheEducai?


2/11

July 2011 F is ca l Not e s F is ca l Not e s July

Like the previous report, Gaining

Costs, Losing Time ocuses on the cost

o obesity to Texas employers. And theupdated data show that the crisis is

gaining momentum.

oBEsiTy CosTs

Obesity is a national crisis, o course.

U.S. health care costs related to

obesity have doubled in less than a

decade and account or 9.1 percent o

annual health costs, or $147 billion.

At Env ElopE.Its what high school seniorsacross Texas hope to nd in the mailbox rom their college

o choice. I its the dreaded thin envelope, a rejection, parents can

expect to spend the dinner hour trying to convince their son or

daughter that lies blessings sometimes come well-disguised.

But i its an acceptance, it may be the happy young person whos

trying to cheer up the parents, with assurances that he or she will

apply or every available grant and take a part-time job to help pitch

in on the tab or their education.

Because no matter how much money mom and dad set aside to

pay or college, these days it seems like its never enough.

Whether theyre staring at our years o tuition or just searching or

ways to pay monthly bills on one less paycheck, a lot o amilies havebeen having serious supper-table discussions about nances lately.

In the wake o the recent recession, citizens all over the state and

country are weighing their options, cutting back and making do.

And they expect their governments at all levels to be doing

the same. Theyre demanding a business-like, bottom-line ocus

that ensures maximum eciency and eectiveness. In short, they

want to know that their dollars are being spent with discipline

and orethought.

Thats the challenge acing Texas colleges and universities as well.

They must nd new and better ways to operate eciently and pro-

duce graduates ully prepared or the workplace o tomorrow.

In this issue oFiscal Notes, we speak with Glenn Reynolds,

distinguished educator and commentator, on the spiraling costs

o getting a college degree and some o the causes o this

daunting increase. We also look at some o the tools and resources

available to Texans o all ages who are

considering starting businesses o their own.

There will never be a shortage o dreamerswho want to test themselves in the market-

place o ideas or commerce. The decisions

were making today will help give the next

generation o Texas innovators and entrepre-

neurs the chance to live their dreams.

lEttEr rom tHE ComptrollEr

A Exxn mb has announcedplans or a new campus nearThe Woodlands. The 385-

acre site, which should be

completed by 2015, will eature

oce space, a laboratory,

conerence rooms, training

acilities, restaurants, a child-

care acility and an employee

wellness center.

Houston-based RedtneCpane will build a318,000-square-oot oce

acility as well as a liestyle

hotel, complete with spa and

tness acilities, in Houstons

Galleria area.

Texas HEB grocery chain isbuilding new stores in Pharr,

Granbury and Bryan. All are

expected to open in the latter

hal o 2011; total construction

costs or the three projects are

estimated at $34.4 million.

In the next ew years, SanAntonio IT hosting and storage

rm Racpace Htng inc.plans to triple its work orce in

Austin, rom about 300 to 900.

A c r o ss T e x A s

Obesity continues to cost Texasbillions o dollars annually, and the

tab is skyrocketing, according to arecent ollow-up to a landmark 2007

report rom the Comptrollers oce.

Gaining Costs, Losing Time: The

Obesity Crisis in Texas, issued in

February 2011, builds on the research

reported in Counting Costs and

Calories, which rst drew national

attention to the potentially crippling

economic eects o unchecked obesity.

Costs Growing Along with Waistlines

VtFiscalNotes.com

t get ea aert n

ur pubcatn and

up-t-the-nute ne n

the Texa ecn.

Continued on page 4

But Texas, unortunately, suers

disproportionately.

In 2009, more than two-thirds

(66.7 percent) o Texans were

overweight or clinically obese,

compared with 63.2 percent

nationally. About 29.5 percent o

Texans were clinically obese. And

the prevalence o obesity among Texas

adults more than doubled in the

last two decades, rom

12.3 percent in 1990.

The resulting costs

to Texas employers

reached $9.5 billion in

2009, due to direct

health insurance

expenditures as

well as absenteeism,

reduced productivity at

work and disability.

The next generation o

Texas workers will be

aected as well. Today,

20.4 percent o Texas

children aged 10 to 17 are

obese, 4 percent more than the

national average. I current trends

continue unchecked, by 2030 an

estimated 36.4 percent o Texans will

be overweight and 36.7 percent will

be clinically obese. The eects on

worker health could cost the states

businesses $32.5 billion annually.

Excessive weight also carries

signicant costs or the individual.

Children who stay obese through

adulthood can expect the condition

to cost them thousands over their lie-

times or obesity-related reasons such

Gaiig Css,lsig te

By Mark Wangrin

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3/11

E I I

urc : T m t r l l r f u l ic cc u nt .

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

$5

$10

$15

$20

$25

$30

$35

$9.5

$32.5

ToTAl Projected oBEsiTy CosTs To TEXAs BUsiNEssEs, 2009-2030 (iN BillioNs)

I obesity rates and the Texas work orce continue to increase as expected,

these direct costs could reach nearly $32.5 bllon in 2030.The total estimate includes

cost burdens beyond just direct health care costs.


disease, lower wages, diet plans

d the wage loss inherent in

orter liespans.

And an unt work orce ultimately

ay harm Texas reputation as a great

ace to do business, according to

mptroller Susan Combs.

Today, businesses want to come

Texas because were seen as a great

ace or them to operate and grow,

ntinued rom page 3

Source:U.S. Centersfor Disease Controland Prevention

1 99 0 1 99 1 1 99 2 1 99 3 1 99 4 1 99 5 1 99 6 1 99 7 1 99 8 1 99 9 2 00 0 2 00 1 2 00 2 2 00 3 2 0 04 2 0 05 2 0 06 2 0 07 2 00 8 2 00 9

Normal Weight

Overweight

Obese

10%

20%

30%

40%

50%

60%

42.0% decline innormal-weight people

21.6% increase inoverweight people

57.1%

30.6%

12.3%

37.2%

33.1%

29.5%

139.8% increasein obese people

THE CosT To A

oBEsiTy PREVAlENCEtrends iN TEXAs ADUlTs, 1990-2009

oVERwEiGHT nation

hile Gaining Costs, Losing Time details problems

and costs, it also oers a series o policy recom-

mendations as solutions, including:

unngphysical education as a high school gradua-

tion requirement and making it mandatory in all semesters o

o middle school;

addng nutrition courses to the public school curriculum;

lmngor eliminating the eligibility o sot drinks,

candy, cookies and ice cream rom the Supplemental Nutrition

Assistance Program (ormerly known as ood stamps);

ofng a $1,000 ederal tax credit to Americans who

pass an annual wellness exam and physical; and

nouagng restaurants to list nutrition inormation

on menus.

The report also includes sections on the demographics o

obesity in Texas, actors contributing to obesity and the value

o worksite wellness programs, which can reduce business heath

care expenditures and absenteeism costs by 25 to 30 percent.

sLiMMinG Do w N

W

in 2009,

(66.7 Percent)

o Tex a nS Were

o v e r w e i G h t

or CliniCally

o B e s e .

No Data


4/11


While the sums are huge, the

cash any child can take home rom a

stock show is capped. In Ho uston, the

grand champion steer cap is $85,000.

Although the sale price was more thanour times that amount, the amount

over the cap is shared with other par-

ticipants through a scholarship und

maintained by the Houston Livestock

Show and Rodeo. More than 300,000

Texas youths have received scholar-

ships through the und.

Somerville says that, as an execu-

tive committee member o the

Houston show, he knows exactly

where the money goes.

No overhead is taken out, it all

goes directly to education, he says.

As the auctioneer concluded, raucousapplause or KST Electric President

Kenneth Tumlinson echoed around the

marble oyer o the Bob Bullock TexasState History Museum in Austin,

signaling the end o Tanner Gerngrosss

2011 livestock show season.

The 14-year-old Wall FFA member

was just one place shy o the top spot

at the Star o Texas Fair and Rodeo

Junior Barrow Show. (A barrow, or

those o us who generally encounter

pork only at the supermarket, is a male

pig.) Gerngrosss Hampshire pig won

best o breed and took the Reserve

Grand Champion Barrow spot, second-

highest honor at the Star o Texas Fair

and Rodeo.

Gerngross was delighted with his

achievement.

I knew he was good good

enough to win his class, but not reserve

champion overall, Tanner says.

RAisE ANimAls, EARN A CollEGE FUND

Raising animals or show is a way o

connecting to Texas rural past, p ar-

ticularly the local shows that draw

hundreds o kids to compete against

their neighbors. Texas modern major

stock shows and rodeos, however,

have become massive enterprises that

allow wealthy Texans and companies

to share their good ortune with the

youths they see as the states uture.

The auction at the smallest major

Texas stock show, San Angelos,

generates almost hal a million dollars

annually. Austins Star o Texas Fair and

Rodeo, which expanded to become

a statewide show during the pastdecade, raised about $800,000 at the

2011 youth auction. Fort Worths stock

show raises about $2.8 million, and

San Antonios about $3.5 million.

The biggest money, though, is

at Houstons livestock show, which

in 2011 generated an estimated $4.5

million, reaching pre-recession levels

o success.

Its the ability to benet kids who

are working hard or their success that

spurs bidders to contribute so much at

junior livestock show auctions.

Former Houston Livestock Show

and Rodeo Chairman o the Board

Paul Somerville describes the

Houston Livestock Show as the Super

Bowl o such events. Each year, the

grand champion animals sell or

six-gure sums.

HoustonsGrand Champion Steer,

or instance, sold or $600,001 in 2002.

In 2011, a Charolais raised by 17-year-old Koby Long o Collingsworth

County commanded a $350,000

premium; it was bought by a partner-

ship o Somerville, chairman and CEO

oAssociated Pipeline Contractors,

and Tilman Fertitta, president, CEO

and principal shareholder oLandrys

Restaurants.

Every young person has some

kind o a dream to achieve a goal,

Somerville says. We help to set those

goals or young people in the ag

business. All these kids want to come

out and win the top prize.

For Somerville, the value osupporting youth through the stock

show is extremely personal. Five years

ago, while his late wie was under-

going treatment at MD Anderson

Cancer Center he learned rsthand

how huge an impact the stock show

could have.

A doctor came

up to me and

introduced

himsel. His name is Dr. Garth Beinart,

Somerville recalls. He said to me, 17

years ago, you took my mother and me

to dinner and gave me a Houston Live-

stock Show and Rodeo scholarship. And

now I am your doctor.

Somerville says the eect o thescholarship to Dr. Beinart goes ar

beyond just his amily.

Hell treat thousands o people,

Somerville adds.

The same goes or the hundreds

o other youths that earn scholarships

rom Houston every year.

The show helps kids at the ar

reaches o the state and sends them to

close to 100 colleges, he says.

Sck Shwsud uues

Running costs are covered by

ticket sales and 24,000 volunteers

provide most o the events labor.

It rewards kids who maybe dont

have the same opportunities [asthose raising animals]. The distri-

bution means all those kids get to

participate.

As ar as I am concerned,

every kid is a winner, Somer-

ville adds. Whatever the child

does, they take on a task that

means they have to get up in the

morning to work at it. Theyve

learned to set a goal and com-

plete a task.

By ge rard MaCCroSSan

Texas Kids Earn College Dollars by Raising Top Livestock

Continued on page 8

At Texas largest junior livestock shows, kids show animals to earn big prize money, typically or

scholarships. In 2011, top prizes ranged rom $2,200 to a whopping $350,000.

m A J o R l o o T Fo R GRA N D C H A m P io N s

in 2011

aT The hou

l iv eSTo C k S

and rode

The gra nd C ha

STeer So l d

$350,0The Winning ex

reC eiv e

$85,0The reMa in

$265,0iS Sha red a M

SC ho l a rShi

oTher you

More Tha

300,0Tex a S y o u Th

reC eiv ed SC ho l

Through a

Ma inTa ined

houSTon S

sTEERs BARRows GoATs lAmBs TURkEys BRoilERs RoAsTERs RABBiTs

san Ange $ 19, 600 $8 ,7 50 $1 5, 000 $12, 200

star f Texa 60,000 10,000 10,300 10,000 $3,500 $4,500 $4,500 $2,200

Frt wrth 185, 00 0 110 ,0 00 35, 000 100, 00 0

san Antn 85,250 48,100 50,000 39,500 16,300 17,100

Hutn 350,000 177,000 140,000 190,000 88,000 120,000

Sources: San Angelo Stock Show and Rodeo, Star of Texas Fair and Rodeo, Fort Worth Stock Show and Rodeo, San

Antonio Stock Show and Rodeo and Houston Livestock Show and Rodeo

2011 Star o Texas Fair and Rodeo Barrow Judge Keith Anderson watches as Tanner Gerngross shows his breed champ

The barrow earned Tanner the reserve grand champion buckle or overall second place among all swine breeds at the

Paul Somerville,

Former Houston

Livestock Show and

Rodeo Chairman o

the Board

p: Tanner Gerngross o Wall FFA in Tom Green County, right, displays his

erve Grand Champion Barrow and Champion Hampshire ba nners at

Star o Texas Fair and Rodeo during the Junior Livestock Auction in

bruary 2011. Bottom: Kenneth Tumlinson, president o KST Electric, let,

tured with the Gerngross amily ater paying $6,000 or Tanners barrow

he Star o Texas Fair and Rodeo auction.

Well,Kstcame tday t play!They just bught the Resere Grad

Champi Barrw r$6,000!

Sir, we cat appreciate yu beig

here eugh. Grad Champi Lamb.

Resere Grad Champi Lamb.

Grad Champi Barrw ad

Resere Grad Champi Barrw

t Kst eLectric.


5/11

Fiscal Notes July July 2011 F is ca l Not e s

HARD woRk PAys oFF

Tanner Gerngross path to Star o Texas

success began during the sweaty 100-

degree days o August outside San

Angelo, where his amily arms cotton,

milo and wheat on about 3,000 acres.

For the past seven years, show animals

have had a place on the arm, too

barrows the Gerngross children have

raised to show at local and statewide

junior livestock shows in Tom Green

County and across the state.

Feeding beore dawn, showman-

ship practice ater school and evenings

spent mucking out barns are everyday

lie or thousands o Texas kids.

The Hampshire showed promise

early on, winning his class at the county

show. The judges comments and the

pigs perormance there told Tanner

where he needed to sharpen up.

We work with the pigs at our

house a lot, Tanner says. When you

work with them more, they know what

the stick means and where to go.

Many o the kids dont live on arms

or ranches, but theyre still working

hard at raising goats or lambs, poultry

or cattle, swine or rabbits in their yards,

FFA barns or wherever they can. Their

parents invest in young animals and

eed so their kids can ocus on the

auction sales and scholarships that

will und uture college tuition, their

reward or raising top-quality animals.

Star o Texas Barrow Judge Brian

Anderson recognizes the discipline

and character learned through raising

animals. Just beore he announced the

2011 grand champion, he had a ew

words o praise or all participants.

The depth o quality o the animals

is up in 2010, but the quality o kidsnever changes, he says. The best

kids in the country are 4-H and FFA.

For most kids, a big payout is a

ew hundred dollars at their county

show. By the time they graduate high

school, they can build their savings up

to several thousand dollars. For the

most successul at one o the majors,

though, the check can reach tens o

thousands o dollars.

All across Texas, thousands o

kids save livestock auction proceeds,

most oten or college scholarships

or expenses.

My dad has a bank account or the

auction money, Tanner says. I have

three siblings and well split it up our

ways. I one does well, we all do well.

Marcus and Jennier Gerngross

ensure that each o their children

works with the pig herd and all share

in the amilys success. When the Gern-

gross amily started with 20 barrows

last August, it was impossible to know

whod end up as pick o the p en.

We never know whos going to

do best. Thats why we split it up,

Tanner says.

oN THE AUCTioN BloCk

At the Star o Texas Fair and Rodeo

youth auction on March 25, 384 kids,

including the top 20 placing in the

Western Art Show, saw their eorts

rewarded by buyers who combined to

spend $800,125, the second-highest

total in the events history. These youths

were the most successul o thousands

who came to the annual show during

the previous two weeks.

Walking to the auction podium

under the dome o the Bob Bullock

museum was the nal step in a seven-

month journey or Tanner Gerngross.

While his reserve grand champion

barrow snoozed in a pen outside,

Tanner nervously clutched his win-

ners banner and looked out across

the tables o buyers as the auctioneer

coaxed bids rom them.

And in a minute it was over, and

Tanner headed down to oer his thanks,

handing over a git basket his mom

Jennier brought or buyer Kenneth Tum-

linson, a Star o Texas board member.

The $6,000 premium bid by Tum-

linson on behal o his company, KST

Electric, will benet all our children in

the Gerngross amily.

Tumlinson knows what the auction

proceeds mean to Tanner and the

other kids whose animals KST bought.

I showed when I was growing up.

And my son [now 28] showed and won

champion with hogs and broilers, he

says. We think it is a very good cause

and we continue to support it.

He used the proceeds rom his

own stock show endeavors to attend

college beore he entered the con-

struction business.

I think that money helped to

position me to go into business or

mysel, he says.

Having a successul company means

Tumlinson can aord to support live-

stock shows in a very meaningul way.

Many major buyers spend a tre-

mendous amount o money every

year, he says. It is something they

like and something they

eel is a good cause

because it puts money in

the hands o kids.FN

txjn hw w hf 4H n FFa f n h , wh h n n h n

n hf h. th hw n f n hh. in h , jn

hw h hn $110 n f n.

millioNs FoR EDUCATioN

Continued rom page 7

EAsT About 24,000volunteers ensure that the Houston Lives-

tock Show and Rodeo, the states largest,

runs smoothly each year. For almost 80 years,

Houstons has been the pinnacle o junior

livestock shows, drawing more than 7,000

exhibitors. In all, 1,850 livestock entries

qualied or the 2011 livestock auction, which

raised $4.5 million.

wEsT The San Angelo Stock Show andRodeo brings together about 3,500 junior

entrants rom all around Texas to compete or

194 auction places. Its 2011 auction generated

record revenue o $453,000.

NoRTH Since its 1896 ounding, the FortWorth Stock Show and Rodeo has grown to in-

clude many events and thousands o livestock

entries. In 2004, its record year, livestock sales

totaled more than $4.3 million. In 2011, 1,827

livestock entries were auctioned, generating

more than $3.4 million in prize money or

Texas kids.

soUTH San Antonio has been holdingagricultural shows since 1854. The modern

San Antonio Stock Show and Rodeo began in

1950 and has grown to become a multi-week

event. The 2011 show saw 983 youth junior

livestock projects auctioned. Recent auctions

have raised about $3.5 million annually to

benet participating youths.

CENTRAl Although its roots date back to1938, Austins Star o Texas Fair and Rodeo

has the states newest junior livestock show,

welcoming kids rom across Texas since 2007.

The Star gets bigger each year. More than 400

youths earned a place in the 2011 auction,

which generated about $800,000.

JUNioR liVEsToCk: TEXAs ToP FiVE

The largest junior livestock showsdraw thousands o Texas FFA and 4-H

members rom points all over Texas

compass. Their aim is to raise top-quality

animals and help generous Texans invest

huge sums in the states uture.

a css T

tss

s s

ct

mst t

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scs

*

Sources:San Angelo Stock ShowandRodeo,Starof TexasFairandRodeo,FortWorth Stock Sh

San Antonio Stock Showand Rodeo andHouston Livestock Showand Rodeo

*Est

HoustoN

saN aNtoNio

Fort WortH

star oF texas

saN aNgelo

MONEY

FOR

SCHOLARSHIPS


6/11

July 2011 F is ca l Not e s0 F is ca l Not e s July

University o Tennessee College o Law. As Instapundit,

Reynolds is one o the nations most widely read and infu-

ential political bloggers, and a leading voice in the ongoing

debate over college costs.

Fn:evy ag ha h c cllg i aig,

bu i wha wul yu h p iua-

i a a bubbl?

Gl ryl:Denitions o bubbles vary, but this is

an economically unsustainable run-up in prices, ueled by

cheap credit. As economist Herb Stein once said, something

that cant go on orever, wont. What weve been seeing in

terms o costs and tuition cant go on orever, so it wont.

Fn:th a l p bmaig h ac kyck-

ig uii a , bu laivly lil ha amp

pipi why h c i iig a. Vaiu cau

hav b ci, uch a vambiiu builig p-

gam, amiiaiv bla a a mphai a

chla a ach pgam. Wha yu a hmaj ac ivig h hap ica i cllg c?

ryl: There are a lot o actors, but the biggest is that

there are no real constraints on running up costs. Most o

the people buying the service students arent paying

or it, at least not right away, and as a result theyre not very

sensitive to prices.

Fn:Bcau hy lyig amily uc a

u la, igh?

ryl: Right. And this means that theres not much

constraint on them. I students had to come up with cash to

enroll, tuition would be lower and colleges would be more

sensitive to costs, as they used to be.

Fn:Yuv wi abu h ap u la.

Wha a h likly c aig cllg b?

ryl: I or-prot corporations operated by getting

18-year-olds to sign on to ruinous debt loads based on

oten-raudulent promises o employment, theyd be treated

as virtual slavers, particularly i the debt was not discharge-

able in bankruptcy. Universities, however, get a pass on this.

The food o cheap credit has encouraged an explosion

in tuition. Meanwhile, the high debt loads acing graduating

students will make things worse or the economic recovery.Graduates with $50,000 to $150,000 in student loan debt are

in a poor position to buy houses, or example, because in

eect they already have a mortgage.

Fn:Giv h p cmy, yu hik ha u

la will ciu b availabl i ufci amu?

ryl: The loans are likely to be available, but theres

evidence that students are already growing more reluctant

to take them out. This will start to put pressure on colleges

and universities to lower prices.

Fn:A wha yu a h ucm i h

high- bubbl bu?

ryl: Well, when bubbles burst theres always pain.

People who have made nancial bets on the bubble con-

tinuing will lose money. Expectations are unsettled, and

theres disruption until a new equilibrium is reached.

I predict strong nancial pressure on colleges and uni-

versities that arent a good investment or students par-

ticularly lower-tier private schools that are nonetheless very

expensive. In addition, majors that dont promise reasonable

earnings will cease to attract students, except or those with

indulgent parents or trust unds.

Fn:Which ai h iu wha m call h valu

ppii h lai bw cllg c a

gaua aig. I cllg imply vpic?

ryl: Well, it depends on the major. College is not

a single product. A major in business or engineering is

probably a better value proposition than a major in

womens studies or anthropology, yet the tuition is thesame. Heres a thought experiment: what would happen i

student loan interest rates, or eligibility, were based on the

earnings prospects oered by the dierent majors?

Fn:A i h bubbl bu, wha abu h cllg

a uivii hmlv? Hw wul hy ac?

ryl: Some schools are already responding. The

University o the South at Sewanee has cut tuition by

10 percent. Several law schools have announced tuition

By Bru Ce WrighT

There was a time in our nations history when college wasreserved or a privileged and well-heeled ew. And today

many worry that those days may be returning, given the

spiraling cost o tuition.

According to the National Center or Public Policy and

Higher Education, average U.S. college tuition and ees rose

by an astonishing 439 percent between 1982 and 2007

more than our times as much as the infation rate or thatperiod (106 percent), and about three times the increase in

median amily income (147 percent).

Texas hasnt been immune. Between 1999 and 2010,

average tuition and ees at the states 10 largest public uni-

versities rose by about 120 percent, to nearly $8,000 annually.

Such increases are orcing recession-battered students

and their amilies to assume increasing amounts o long-

term debt. According to the Institute or College Access

and Success, 58 percent o Texas 2009 college graduates

were carrying student loan debt an average o $20,015

each. And debt can range much higher, o course, par-

ticularly or those attending private schools and pursuing

advanced degrees.

Such debt can be daunting or amilies and crippling or

young people just entering the job market, particularly one

as rocky as todays.

So where does it end? College costs cant continue

climbing indenitely, can they? And what happens i our

universities price themselves out o their market?

Such speculation has led many observers to begin

describing higher

education costs as a

classic bubble andone that may even-

tually give way, with

potentially disastrous

eects on our schools

and society at large.

One such

commentator is Glenn

Reynolds, Beauchamp

Brogan Distinguished

Proessor o Law at the

EVER UPwARD

reezes. And several states are loo king at closing marginal

public institutions or laying o aculty.

Fn: I h ayhig cllg ca kp hi c

w, a m cl v h ciuu

pic ica?

ryl: Well, theres some conspicuous waste. Today,

lots o colleges have expensive sustainability oces

clear evidence o an approach to spending that is in itsel

unsustainable.

But more seriously, many introductory courses could be

done online, and at least two-thirds o administrators [dont

aect] the students actual education at all.

Fn: H i ta, u gv ha call h cai

a $10,000 bachl g, pi ciabl

kpicim m acamia. I hi a uiul appach?

ryl: I think its entirely possible. It would require a

program that was ocused very narrowly on educational

value to the students, at the expense o other, more powerulstakeholders in the university. But it could certainly be done.

Fn:s, i gal, ca cllg cu hi c maig-

ully? A i ayhig likly c hm ?

ryl: Yes, they can. And economic pressures willorce

them to. The only question is how so on and how painul the

adjustment will be. FN

Texas parents saving or college should investigate the states

prepaid tuition plan, the Texas Tuition Promise Fund.

i ctstrong

c ss cs

sts tt t

stmt

stts.

g rs,

ust Tss

C lw

ABubbe iHighe Educai?

An Interview with Glenn Reynolds

W e a t H e r i N g t H e s t o r m :

a s e r i e s o F r e p o r t s

o N t H e t e x a s

e co N o m i c cl i m a t e

T s u nt ss thng th Stm tcs,

stwww.FiscalNotes.com.

BeTWeen

and 20

average tu

and Fe e

The STa

10 l a rg

u niv erS

ro se

120

th f n tx 10 n

h n n f 120 n n 1999.

iNsTATE TUiTio

(All Amounts in 20

2010

1999

$7,954

$4,569

$3,408$2,870

$3,928$4,155 $4,128

$3,822$4,020

$3,000

$2,310

$3,621

$7,496

$6,537

$5,699

$7,838

$8,387 $8,500$8,410

$9,418

$8,997

$8,260

THEUNIVERSITYOFTEXAS-PANAMERICAN

TEXASSTATEUNIVERSITY-SANMARCOS

TEXASA&M-COLLEGESTATION

THEUNIVERSITYOFTEXASATARLINGTON

THEUNIVERSITYOFTEXASATSANANTONIO

THEUNIVERSITYOFTEXASAT

UNIVERSITYOFHOUSTON

TEXASTECHUNIVERSITY

AVERAGE

THEUNIVERSITYOFTEXASATELPASO

UNIVERSITYOFNORTHTEXAS

Source:Texas Higher Education Coordinating Board,the College Boardand TheChronicle ofHigher Education


7/11


When the George W. Bush Presidential Library opensits doors in spring 2013, Texas will have a brand-new

bragging right. The state will be home to three o the

nations 13 presidential libraries the mo st o any state.

Under the Presidential Libraries Act o 1955, theNational Archives and Records Administration operates

all presidential libraries. The law codied a tradition that

began with President Franklin D. Roosevelt, who raised

private unds to build the rst presidential library and

then gave it to the U.S. government to op erate through

the National Archives.

Presidential libraries arent libraries in the traditional

sense theyre repositories or papers, records and

other artiacts that document the many events and

decisions o a presidential administration. The libraries

are treasure troves or researchers, history bus, political

junkies and educators.

The new Bush library, to be located on the Southern

Methodist University (SMU) campus in Dallas, joins the

Lyndon Baines Johnson Library and Museum in Austin

and the George Bush Presidential Library and Museumin College Station, giving our state a unique triecta in

American history.

Visitors will be able to see items such as the bullhorn

W used at the World Trade Center site on September

14, 2001; the parachute his ather used in his 85 th birthday

jump with the Golden Knights; and the love letters a

young Lyndon Johnson penned while courting Lady Bird.

There are people who collect trips to presidential

libraries like others collect stamps, says Mark Upde-

grove, LBJ Library director. They enjoy visiting them and

checking them o their list. Here in Texas, theyll have

an opportunity to experience more than 20 years o

American presidential history.

Today, about 150,000 people visit the Bush library

in College Station annually, while the Johnson library

attracts more than 250,000 visitors. Since Texas latest

presidential library will be located in a city three times

Austins size, and considerably more accessible than Col-

lege Station the largest U.S. city not served by a major

highway its a good bet the new library will meet or

exceed those attendance gures.

At present, the materials o the George W. Bush

library are being stored in Lewisville. Archivists and

library sta are poring

through and readying amammoth collection o

some 43,000 artiacts,

nearly 4 million photo-

graphs and 80 terabytes

o electronic inormation, including nearly 210 million

emails, according to Alan Lowe, director o the library. By

contrast, the rst administration o the Internet era, Presi-

dent Clintons, produced just our terabytes o electronic

data, says Lowe.

And just as the digital era has changed the type o

inormation presidents generate, so too has it altered

the expectations o museum visitors. The challenge or

presidential libraries is to make the experience un and

engaging to younger Americans raised on video games

and computer networks. People today are used to being

in control o their learning experiences, says Updegrove.

The elder George Bush's library recently revamped its

core collection, going rom just our interactive exhibits

to 99. At present, its most popular interactive exhibit is

the Situation Room, where touch screens allow visitors to

meet and learn about the various players in the Gul War.

But it doesnt stop there. Its a multi-layered

experience, reports Warren Finch, director o the George

Bush library. Visitors are conronted with various global

scenarios and can compare their responses to how Presi-

dent Bush handled the same situations. Library guests

also can access video news or every day o the war to

see how it was reported to the country and around the

world.

Similarly, the G eorge W. Bush library will eature a

Decision Theatre, which will challenge visitors to put

themselves in presidential shoes and consider various

options to the issues the president conronted. When

guests want a break rom the rigors o executive branch

decision-making, they can stop at a Texas Rose Garden, a

acsimile o the original at the White House.

The three library directors, all close riends rom years o

working in the presidential library system, are excited about

the possibilities o collaborative exhibits, lectures and edu-

cational programming. Finch notes that the George Bush

and Johnson libraries joined orces a ew years ago to mark

the 50th anniversary oNASA.

Education is an important mission or o all presidential

libraries, and the new library at SMU will be no exception.

Were spending a lot o time thinking about how to best

serve the community and the state, providing educators

with interesting lesson plans they can use and we plan to

oer an array o educational events at the museum, says

Lowe. President Bush and the First Lady have a long-term

vision and want the museum to be relevant or students and

teachers both today and 50 years rom now. FN

pst bs

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Director, George W. Bush

Presidential Library

A hepesidesmeiesFrom the Oval Ofce to Texas

By david BlooM

The megaphone (above) President George W. Bush used to

address New York City frefghters and rescue workers ater

the 9/11 attacks (below).

Above: The George Bush Presidential Library and

Museum in College Station.

Artists conception o the new George W. Bush Presidential Library planned or Dallas.

Photo courtesy ofthe George W.Bush PresidentialLibrary.

ArtworkcourtesyoftheGeorge

W.BushPresidentialLibrary.

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8/11

By ClinT Shie ldS


Entrepreneurship oten starts witha single moments inspiration. But

turning that moment into success in

business requires certain knowledge

and skills. And a 2010 study by Cam-

bridge, Mass.-based Monitor ound

that Texas lags behind other states in

entrepreneurial education.

Teaching these skills is the mission

o the Network or Teaching Entrepre-

neurship (NFTE). NFTEs Greater Dallas

chapter, the only one in Texas, partners

with the Dallas Independent School

District (DISD) to oer entrepreneur-

ship education to students at 27 middle

and high school campuses. Ninety-two

percent o the kids in the NFTE-Greater

Dallas program are rom low-income

amilies.

Going to work or a company or

the rest o your lie is pretty much not

a reality anymore, says Laura Maczka,

NFTE-Greater Dallas director. Our

entire purpose is to show kids the rel-

evance o graduating rom high school

and changing your living situation

through education and work.

In the NFTE-Greater Dallas cur-

riculum, every student must develop a

business idea and write and deend a

business plan. The organization

provides seed capital to some

participants and provides more unds

or selected student businesses at the

school years end.

In addition to the regular curric-

ulum, NFTE-Greater Dallas oers two-

week BizCamps crash courses

in entrepreneurialism to students

rom all school districts in the region.

Students who successully complete

the camp can enter business-plan com-

petitions in the ensuing school year.

NFTE-Greater Dallas trains DISD

teachers to oer the program, which

currently has about 2,000

participants. In addi-

tion to its educational

goals, Maczka says

NFTE-Greater

Dallas wants the

class oerings to

become part o the

student culture at

DISD campuses.

Were trying to

become that sought-ater class

that people know about, and create

a pathway or those kids, starting in

middle school, she says. Ultimately,

wed like to see these kids go on to col-

lege and complete this path o entre-

preneurial education. FN

percent owned by a minority member

or a woman, with their principal place

o business in Texas and at least one

owner residing in the state.

Texas statewide HUB Program is

intended to encourage HUB involve-

ment in the state procurement process

and to ensure that they receive a air

share o state business. Registered HUBs

also are urged to participate in the Cen-

tralized Master Bidders List (CMBL), a

list o pre-approved vendors that state

purchasers must consult beore con-

tracting or goods and services.

The Centralized Master Bid-

ders List is essentially a master list o

reliable vendors, says Rachel Snell,

marketing coordinator or the Comp-

trollers Statewide HUB Program.

Our goal is to create access, and give

registrants the ability to receive bids

based on products or services they

can provide the state. State purchasers

are required to go here rst to develop

a mailing list to send notications o

their needs.

In addition, contractors oten

use the states HUB Directory to

identiy HUBs or subcontracting

opportunities.

In scal 2010, certied HUBs

received more than $2.1 billion in

state spending, including more than

$987 million in subcontracts awarded

by other state contractors. While the

states total expenditures ell by more

than $260 million in scal 2010, its

spending with HUBs rose by more than

$148 million, a 7 percent increase. The

percentage o dollars spent with HUBs

rose rom 14.5 percent to 15.9 percent.

The CMBL and the HUB certica-

tion are two separate databases buttogether increase your exposure to

the state government, says Snell.

Networking is another important

step. You are the best voice or your

company.

HUB certication is ree o charge

and inclusion on the CMBL costs

$70 annually.

moRE oNliNE

To apply or HUB certication or to

register as a state vendor or the CMBL,

get started at www.window.state.

tx.us/procurement/registration.

The U.S. Small Business Adminis-

tration oers an online Small Business

Training Network a virtual class-

room that oers courses in nance and

accounting, business planning, and

marketing and advertising at no cost.

For more inormation, visit www.sba.

gov/category/navigation-structure/

counseling-training. FN

The states ocial website,

Texas.gov, oers a wealth o inor-

mation on unemployment insur-

ance, labor laws, available incentives

and other topics o interest. A

section called MyTexasBiz tells

prospective business owners the

permits and licenses they need

to get started in Texas.

The Comptrollers own Texas

Business Advisor also provides

helpul inormation, serving as a con-

venient one-stop shop or inorma-

tion on starting a business in Texas.

The Texas Governors Small

Business Advocacy group provides

numerous links to state and ederal

resources, inormation on exporting

and a detailed Guide to Starting a

Business that introduces beginning

entrepreneurs to the major mileposts

acing any new business, including:

dening a legal structure or the

new business and properly ling a

business name;

determining its potential ederal,

state and local tax responsibilities;

obtaining needed licenses, per-

mits, certications, registrations or

authorizations; and

understanding ederal and state

employer requirements.

The Comptrollers oce oers

assistance to the states historically

underutilized businesses (HUBs).

HUBs are businesses that are least 51

Rachel Snell

Marketing Coordinator

Comptrollers Statewide

HUB Program

a Bo u T

0 The

texas joBs

l o ST du ring The reC eSSio n

have already Been

recovered

45

in iSCal2010, CerTiied huBSreceived

Mo re Tha n

$2.1BiLLion

in STaTe Spending, inCluding

$987MiLLion

in Su BC o nTra C TS.

Starting a small business in a turbu-lent global economy can test even the

strongest o characters. But its this

spirit o determination and drive or

success that has made Texas a avored

destination or businesses looking

or a strong environment in which to

thrive and prosper.

Despite the bad news nationwide,

including an uncertain housing market

and fat employment data, theres

optimism in Texas, where the lack o

a state income tax, healthy export

volume and rapid population growth

has made the state a relatively sae

environment or starting and growing

a small business.

Texas economic data buttresses

that optimism. About our-ths o the

Texas jobs lost during the recession have

already been recovered. And at this

writing, the states unemployment num-

bers have remained below the national

average or 52 consecutive months.

GETTiNG oFF THE GRoUND

Our state oers a number o resources

or Texans hoping to turn their dreams

into a protable enterprise.

utmt,

w t s ts

t c c

ts t t

ct.

l Mcz

nTe-gt ds d

A EaySa EeeeusGetting Started in the Best State or Business

Eeeeuiais101By MiChae l CaST e llon
http://www.monitor.com/http://www.nfte.com/http://www.nfte.com/http://www.nfte.com/what/programs/greater-dallashttp://www.nfte.com/what/programs/greater-dallashttp://www.dallasisd.org/http://www.dallasisd.org/http://www.nfte.com/what/programs/greater-dallas/staff-and-boardhttp://www.nfte.com/what/bizcampshttp://www.nfte.com/what/bizcampshttp://www.nfte.com/what/programs/greater-dallas/staff-and-boardhttp://www.dallasisd.org/http://www.dallasisd.org/http://www.nfte.com/what/programs/greater-dallashttp://www.nfte.com/what/programs/greater-dallashttp://www.nfte.com/http://www.nfte.com/http://www.monitor.com/


9/11

JoB GRowTH iN TE XAs, mAy 2010 To mAy 2011

12-moNtH cH

raNk iNdustry Jobs (may 2011) Job couNt

1 mnn n ln 234,900 31,700

2 cn n 591,800 26,400

3 pfn & bn s 1,319,800 54,400

4 en & Hh s 1,430,700 43,500

5 t 1,659,900 36,800

6 oh s 370,600 8,200

7 l & H 1,045,500 19,800

8 mnfn 818,600 10,700

9 tnn, Whn, u 419,700 4,500

10 Fnn a 625,800 2,700

11 gnn 1,889,600 31,000

12 inf n 186,900 9,300

Source:Texas A&M University RealEstate Center


Bie ByesBy e diT orial ST a

Texas continues to generate jobsmore quickly than the nation as a

whole, with a 1.9 percent growth rate

between May 2010 and May 2011,

according to the Texas A&M Univer-

sity Real Estate Centers most recent

Monthly Review o the Texas Economy.

This growth represents about 198,400

jobs gained.

Over the same period, U.S. nonarm

employment rose by just 0.7 percent.

Employment in Texas mining and

logging industry mostly oil and

gas production rose most quickly

during the period, expanding by

15.6 percent or 31,700 jobs. Proes-

sional and business services added

The Texas Mortgage Credit Program(TMCP) helps low- and moderate-

income Texans especially rst-time

homebuyers purchase homes.

Program applicants recently received

a boost when the Texas Department

o Housing and Community Afairs

(TDHCA), which oversees the program,

released more than $45 million in

mortgage credit certicate authority

to assist homebuyers.

This credit authority, essentially a

tax credit, reduces a borrowers tax

liability. It applies to about $150 mil-

lion in mortgage loans and should

help more than a thousand eligible

Texas amilies buy homes, once theyhave completed a certied homebuyer

education class.

The Texas Mortgage Credit Pro-

gram is another helpul yet respon-

sible resource that TDHCA can oer

to qualiying Texas amilies who are

prepared to be homeowners, says

acting TDHCA Executive Director Tim

Gervin. This is a terric program, and

we are excited to make it available to

our ellow Texans.

A recent study rom online salary compar-ison site PayScale.com named Austin among

the top U.S. cities or inormation technology

(IT) jobs with startup companies. The study

dened startup IT companies as those

having ewer than 75 employees, and ranked

cities on the basis o median salaries and

a comparison o their ratio o IT workers at

startup IT rms to all workers versus the

national ratio.

Austin ranked No. 2 nationally in the IT

Startup Salary Hotspots Report, with

San Francisco claiming the top spot. And

while Austins median pay o $67,400 was

lower than those in cities such as Seattle,

Boston and New York City, the city oered the

nations second-highest IT employment ratio.(TraceyLamphere)

PRoGRAm HElPs TEXANs AFFoRD HomEs

TEXAs A&m GENERATEs$3.7 BillioN iN ECoNomiC

ACTiViTy

According to Texas A&Ms Divisiono Finance, the Texas A&M Univer-

sity System provided the state with a

record-setting $3.7 billion in economic

activity in 2010, $213.4 million more

than in 2009. A record high in all

enrollment, construction activity and

new-student conerences helped spur

the increase.

The study showed thatTexas A&M

and other components o the A&M

system in Bryan-College Station had a

direct impact o almost $1.5 billion on

the local economy, $85.3 million more

than in the previous year.

Student spending also contributed

to the increase in economic activity,

with a $38.6 million increase over

2009.

New-student conerences

mandatory two-day sessions held in

the summer signicantly added to

the number o visitors to the Bryan-

College Station area.

The systems construction costs or

calendar 2010 totaled almost $273.5

million, an increase o about $133 mil-

lion over 2009.

(TraceyLamphere)

AUsTiN AN iT HoT sPoT FoR EmPloymENT

U.S.JOB

GROWTH

0.7%

G

TEXAs JoB GRowTH oUTPACEs U.s.

Qualiying amilies can deduct

30 percent o their annual mortgage

interest, up to a maximum o $2,000

per year. The benet lasts or the

entire lie o the mortgage loan.

tMCP Is GeAred toWArd

texAs FAMILIes WHo:

are rst-time buyers or who have

not owned a home in the previous

three years;

will use the home they buy as their

primary residence; and

meet certain income and home

purchase requirements, as well asthe qualiying requirements o the

mortgage loan.

The $45 million was split into two

unds, targeted and non-targeted.

The targeted und is intended to help

buyers in areas o the state aected

by natural disasters, while the non-

targeted is available to the rest o

the state.

The targeted und expires

on Dec. 12, 2011, while the non-

targeted authority expires on

Dec. 31, 2011 or until are

unds are distributed.

Program details including

und availability, FAQs and

locations and providers o

homebuyer education and coun-

seling classes are available online

at www.myrsttexashome.com.

(ClintShields)

the highest number o jobs, gaining

54,400 additional positions.

Texas construction posted solid

gains as well, growing by 4.7 percent

or about 26,400 jobs. A 3.1 percent

increase or education and health ser-

vices translated into 43,500 additional

jobs, the second-highest numerical

gain among industry categories.

Texas jobs and employment data

are available at www.texas

ahead.org.

(ClintShields)
http://www.tdhca.state.tx.us/homeownership/fthb/mort_cred_certificate.htmhttp://www.tdhca.state.tx.us/index.htmhttp://www.tdhca.state.tx.us/index.htmhttp://www.payscale.com/http://www.payscale.com/about.asp?pg=news&sub=pr&pr=6462http://www.payscale.com/about.asp?pg=news&sub=pr&pr=6462http://www.tamus.edu/http://www.tamus.edu/http://www.tamu.edu/http://www.tamu.edu/http://newaggie.tamu.edu/http://www.myfirsttexashome.com/http://www.myfirsttexashome.com/http://newaggie.tamu.edu/http://www.tamu.edu/http://www.tamus.edu/http://www.tamus.edu/http://www.payscale.com/about.asp?pg=news&sub=pr&pr=6462http://www.payscale.com/about.asp?pg=news&sub=pr&pr=6462http://www.payscale.com/http://www.tdhca.state.tx.us/index.htmhttp://www.tdhca.state.tx.us/index.htmhttp://www.tdhca.state.tx.us/homeownership/fthb/mort_cred_certificate.htm


10/11

July 2011 Fiscal Notes8 Fiscal Notes July

texas by he nubes t sttstcs n th Ts cnmy, chck thCmts wbst t .TexaAhead.rg

tx pn n cnn in

Crude oPrductn

Natura GaPrductn

Actve o & GaDrng Rg

mtr Fue Taxedmedan sae Prce,

Extng sngefa HeA ut s a e C g ar et te T ax ed

daTe Value Value Units Gasoline Diesel Dollars Net Value Packages of 20

(MillionS) (MillionS) (MillionS o gallonS) (MillionS) (MillionS)

2009 $18,380.2 $10,021.3 5,178.0 993.0 289.7 $144,792 $34,792.6 949.9

2010 14,309.3 7,283.3 4,994.1 996.6 303.9 146,229 21,955.1 630.3

JUN-10 1,916.3 1,156.4 663 1,060.4 313.5 152,300 3,490.5 81.0

JUl-10 2,071.2 1,157.9 676 1,028.3 319.0 154,500 3,460.0 81.2

AUG-10 2,155.7 1,208.2 714 1,034.2 311.4 153,100 3,587.7 81.4

sEP-10 2,087.5 1,071.2 721 1,053.6 310.2 146,800 3,432.6 87.6

oCT-10 2,369.0 1,174.8 717 1,001.6 318.5 144,700 3,325.9 82.4

NoV-10 2,411.3 1,141.1 734 1,031.7 322.2 146,300 3,231.1 79.5

DEC-10 2,712.8 1,439.1 746 1,044.4 308.8 150,800 3,265.1 71.4

JAN-11 2,751.9 1,448.3 736 962.7 314.8 139,000 3,225.5 66.4

FEB-11 2,294.2 1,290.1 747 965.0 304.3 146,100 3,265.7 73.8

mAR-11 3,123.5 1,523.5 748 884.4 284.7 144,000 3,973.8 91.0

APR-11 3,384.4 1,538.3 789 1,039.3 336.7 145,400 3,422.1 85.2

mAy-11 3,257.2 822 1,006.6 321.3 149,300 3,152.2 85.0

JUN-11 839 155,400 88.7

ey Texas Economic Indicators - Texas total nonfarm employment increased by 32,000 jobs from May to June. Between June 2010 and June 2011, Texas gained 22,000 jobs.ver the past year, Texas added jobs in most sectors, including construction, manufacturing, mining and logging, leisure and hospitality, financial activities, professional and businesservices, educational and health services, and government.

INDEXES

EMPLOYMENT

REAL ESTATESALES TAX

Changefrompreviousyear:Texas-23.3% U.S.-29.0%Inthousands

Mortgage Foreclosures

6/10 6/11150

350

9.3

(Doubleaxisgraph-see Notesonpage15)

Texas U.S.

U.S.scale

Texasscale

7

20

222.7

0

3

Valueinbillions

TexasNon-ResidentialBuildingConstructionContracts

$1.61

Changefrompreviousyear:16.8%

6/10 6/11

0

30,000

6/10 6/11

21,594

Changefrompreviousyear:-1.7%Units

Existing Single-Family Home Sales

5/10 5/110

10,0005,712

1,531

Changefrompreviousyear:Single-0.2% Multi-0.1%Units

Housing Permits

Si ngle Mu lti

California

Texas

NewYork

Florida

Illinois

FiveMost PopulousStatesRankby population

0 3 6 9 12 15

Change in Nonfarm Employment

2.1%0.5%

1.1%

1.1%

0.7%

MillionsofJobs

5/105/11

6/10 6/11

Changefromprevious year:2.0%Inmillions

9.5

11.010.59

Nonfarm Employment

6/10 6/116

119.2%

8.2%

Changefrompreviousyear:Texas-0.1 U.S.-0.3Percent

Unemployment Rate

Texas U.S.

0

$1,200

Changefrompreviousyear:4.2%Inmillions

State Sales Tax Collections, Retail Establishments

6/10 6/11

$836.1

7/10 7/1125

100

59.5

WSC* U.S. 81.5

Changefrompreviousyear:WSCRegion*23.5% U.S.16.7%Index

Consumer Confidence Index

1985=100*IncludesTexas,Arkansas,Louisiana&Oklahoma(persourcesdatagroups)

2004=1001/10 1/11100

115 112.5

108.1

Changefrompreviousyear:Texas2.3% U.S.4.7%Index

Leading Economic Indicators Index

Texas U.S.

6/10 6/11180

250

204.9

225.7

Consumer Price Index

Texas U.S.

Changefrompreviousyear:Texas3.3% U.S.3.6%Index

1982-84average=100

6/10 2002=100 6/1180

120

93.1

Changefrompreviousyear:0.5%Index

Industrial Production Index

Jn ch cnn1

(Amounts in millions)GeneraRevenue

otherFund

TtaCah

BE Gi NN iN G B Al AN CE JU NE 1, 20 11 $ 5,5 95 .1 $ 25 ,53 9. 0 $ 31 ,13 4.1

r/ets

r 5,452.7 3,591.2 9,043.9

ets 6,873.2 2,900.0 9,773.2

nt icm t $-1,420.5 $691.2 $-729.3

nt it Tss istmt Tscts $1,991.2 $-2,127.6 $-136.4

Tt Tscts 570.7 -1,436.4 -865.7

END CAsH BAlANCE JUNE 30, 20112 $ 6, 16 5. 8 $ 24 ,1 02 .6 $ 30 ,2 68 .4

1 Cssttsmt Cmt sumSttwacctSstmuSaS w mtmtscttcsccts tTs otsds tCmt sfct tmcs.nt mtsswsss cstt tzt btstSttTs t csstuSaS.SssTst sc,smmt cmsttst scctb tsttbt tTs.Ttsm t t .

2 Tgrbccs$3.9 bmts cs mmt ts.

s rn/a Fn1

mnthRevenue

Fca yeartDateJune 2011

(Amounts in millions) June2011 Revenue % ChangeyTD/yTD

TAX CollECTioNs By mAJoR TAX

Ss T $1,731.0 $17,663.1 9.3%

o pct T 155.3 1,184.6 42.7

nt gs pct T 71.2 894.3 45.2

Mt Ts 264.6 2,580.3 2.6

Mt vc Ss T 272.0 2,418.5 13.7

cs T 19.4 3,753.4 1.5

Ctt & Tbcc Ts 137.4 1,245.2 8.7

acc Bs T 75.8 715.2 6.9

isc Cms T 18.8 823.3 1.8

utt Ts2 0.2 313.9 -4.5

itc T 0.0 0.7 491.2

ht/Mt T 33.7 303.0 14.1

ot Ts3 18.1 2,071.0 20.8

ToTAl TAX CollECTioNs $2,797.2 $33,966.6 10.0%

REVENUE By RECEiPT TyPE

T Ccts $2,797.2 $33,966.6 10.0%

icm 3,902.7 35,760.0 5.6

itst istmt icm 31.4 1,076.5 -5.9

lcss, s, mts, s, 628.9 6,607.4 16.6

Ctbts t em Bts 557.3 4,903.1 6.8

Ss gs Scs 41.9 213.9 -37.6

l icm 207.2 1,406.4 128.0

nt ltt pcs4 154.9 1,400.2 -0.3

ot r Scs 722.6 7,601.5 9.4

ToTAl NET REVENUE $9,044.0 $92,935.6 8.8%

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s exn/a Fn1

mnthExpendture

Fca yeartDJune 2011

(Amounts in millions)June2010

Expendture

% CyTD

By oBJECT

Ss Ws $886.4 $9,000.2

em Bts/Tc rtmt Ctbt 912.1 8,683.3

Ss Mts 100.3 828.0

ot ets 339.4 3,083.4

pbc assstc pmts 4,036.6 38,944.6

itmt pmts:

t S c p m g t s 1 ,4 26 .5 1 4, 39 7. 5

o t pb c ec t g ts 2, 20 8.5 6 ,69 5.0

gts t h ect 95.8 1,009.4

ot gts 296.0 2 ,659.0

T 13.4 124.9

pss S cs s 18 4.8 1,84 8.3

p m t i t s t/ dbt S c 9 9.7 921.5

h w C st ct M t c 3 50 .0 3 ,0 56 .5

Ct ot 57.9 451.4

rs Mtc 74.3 655.1 Cmmcts utts 41.1 419.6

rts lss 23.4 235.8

Cms Jmts 12.5 90.9

Cst gs S 38.1 408.0

pt rct 3.1 33.3

ToTAl NET EXPE NDiTUREs $9,773.3 $93,545.8

By FUNCTioN

g gmt

ect $733.2 $6,628.5

lst 12.2 116.1

Jc 17.1 220.8

Sbtt 762.5 6,965.5

ht hm Scs 3,945.7 37,60 0.2

pbc St Ccts 388.9 3,885.3

Tstt 626.4 5,412.5

n t r s c s /r c t S c s 1 44 .2 1 ,4 68 .4

ect 2,906.0 28,520.6

rt acs 31.0 283.4

em Bts 798.5 7,603.4

dbt Scitst 99.7 921.5

Ct ot 57.9 451.4

ltt Ws p2 12.3 433.7

ToTAl NET EXPE NDiTUREs $9,773.3 $93,545.8

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NoTEs:

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soURCEs:


11/11

Fiscal Notesis cyighed ad ay be educe

the texas Ce pubic Accus wud aeciacedi aeia used ad a cy he ei.

oie subsciis, eewas caceais

Fiscal Notesay be eeed afscaes.c

Sed quesis ces [email protected]

ax: (512) 463-4226 (800) 252-3620

o wie:

Fiscal Notes texas Ce pubic Accus

Daa Seices Diisi

111 E. 17h S., Suie 301, Ausi, tX 78774-0100

e iai, ca (800) 531-5441,

ex. 3-3116; 463-3116 i Ausi.

Widw Sae Gee is he Wd Wide Web www.widw.sae.x.us.

Fiscal Notesis e he ways he Ces fce sies assis axayes ad he ee texas. the ewsee is a by-d

he Ces csiuia essibiiies i he

saes ecy ad esiae sae gee eeues.

Fiscal Notes as ides a eidic suay he faciasaees he s ae texas.

Aices ad aaysis aeaig iFiscal Notes d ecessaieese he icy eds ee he texas Ce pubAccus. Sace is deed a wide a iey ics texas ie

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Age, Sa Ai, Shea, tye, vicia, Wac ad Wichiaas, as we as Chicag, ls Agees, new Yk ad tusa.

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Widw Sae Gee is he Wd Wide Web awww.widw.sae.x.us. oie subsciis, eewas

caceais Fiscal Notes ay be eeed awww.fscaes.c

Staff

Delane Caesar

DIRECToR of DATA SERvICES DIvISIon

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mymnt n th sn ny scs, gms ctts.

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(512) 463-4900 (800) 531-5441, t. 3-4900 (voiCe), (512) 463-4226 (ax),

st th lBJ Stt ofc Bung, 111 est 17th Stt, rm 311, austn, Ts.

Ts Cmt pubc accuntspubctn #96-369,

Juy 2011

a rw th Ts ecn my m th ofc Susn Cmbs, Ts Cmt pubc acc

sua Cmbst e x s c o m r o l l e r o f p u b l i a o u n s

Say Dy i atexas He

the nation is still hurting rom the real estate bust. In the rst quarter o 2011, more thana th o all U.S. homeowners were under water, according to the nancial and consumer

inormation rm CoreLogic, meaning that they owed more on their mortgages than their

homes are worth.

Texas homeowners have ared considerably better, however. Texas share o mortgages

under water was third-lowest among the 10 largest states and less than hal o the

national average.

Number oFNumber oF Negative-equity Negative-equity

state mortgages mortgages sHare

New York 1,857,196 114,899 6.2%

Pennsylvania 1,817,020 137,080 7.5

Texas 3,307,047 335,446 10.1

North Carolina 1,540,349 171,910 11.2

Illinois 2,231,895 483,517 21.7

Ohio 2,198,069 482,048 21.9

Us ToTal 48,012,368 10,905,978 22.7

Georgia 1,604,759 487,118 30.4

Caliornia 6,830,925 2,107,984 30.9

Michigan 1,378,669 496,403 36.0

Florida 4,387,148 2,021,868 46.1

Source: CoreLogic

Documents

Fiscal Notes: July 2011