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
obiy pll ubl bui 3
Livck hw u ki ucai 6
nw pii al muum ta 12
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?
8/6/2019 Fiscal Notes: July 2011
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
a bs
t w b w s
w bssss c
s cs m
ts t T
Cmt Ss
8/6/2019 Fiscal Notes: July 2011
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.
July 2011 F is ca l Not e s F is ca l Not e s July
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
8/6/2019 Fiscal Notes: July 2011
4/11
July 2011 F is ca l Not e s F is ca l Not e s July
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.
8/6/2019 Fiscal Notes: July 2011
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
c
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
8/6/2019 Fiscal Notes: July 2011
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
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stmt
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ust Tss
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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
8/6/2019 Fiscal Notes: July 2011
7/11
July 2011 F is ca l Not e s2 F is ca l Not e s July
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
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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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8/6/2019 Fiscal Notes: July 2011
8/11
By ClinT Shie ldS
July 2011 F is ca l Not e s4 F is ca l Not e s July
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/8/6/2019 Fiscal Notes: July 2011
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
July 2011 F is ca l Not e s6 F is ca l Not e s July
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.htm8/6/2019 Fiscal Notes: July 2011
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
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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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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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soURCEs:
8/6/2019 Fiscal Notes: July 2011
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DIRECToR of DATA SERvICES DIvISIon
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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.
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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