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Texas Needs the Workers! An Analysis of the Economic and Fiscal Impact of Undocumented Workers

The issues surrounding immigration are complicated (particularly in the case of the undocumented segment), but there is one incontrovertible fact: TEXAS NEEDS THE WORKERS! The estimated number of undocumented workers in Texas today is approximately twice as large as the total number of unemployed persons in the workforce. Even if all currently unemployed persons filled jobs now held by undocumented workers (which is impossible for myriad reasons), ...

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Catalyst! The Role of Dallas/Fort Worth International Airport in the North Central Texas Regional Economy

For more than 40 years, DFW Airport has been providing air passenger and cargo service to the vibrant economies of Dallas, Fort Worth, and the other cities in the North Central Texas Region. In addition to this essential role, the Airport is also an important source of jobs and economic activity for the area and beyond. The DFW Airport serves as a substantial source of business ...

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The Electronic Payments System is the Force Behind One in Five Jobs

“Electronic payments are highly efficient, offering advantages such as speed, reduced costs, and accuracy,” said Dr. Ray Perryman, President and CEO of The Perryman Group. “These enhancements have contributed significantly to the expansion of the US economy, increasing liquidity and stimulating personal consumption.” An easy to use, efficient method of purchasing goods and services is essential to a well-functioning economy. Payment methods have evolved throughout human ...

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…and Justice for All: The Potential Economic Benefits of Improving the Judicial Infrastructure in the Eastern District of Texas

No modern economy can prosper without a strong system of courts to protect public safety, secure property rights, enforce contracts, and resolve disputes. In fact, an effective judiciary lies at the heart of the very foundations of Western civilization. Even so, many states and locales face poorly funded courts, while the Federal courts have been hampered in recent years both by the inability of Congress ...

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Child Maltreatment is a Trillion-Dollar Drain on the Economy

In addition to the very real and often lifelong effects on the individuals involved, child maltreatment also imposes substantial economic costs which can be quantified in a comprehensive manner. When properly measured, child maltreatment drains literally trillions of dollars in long-term business activity. “As horrific and unimaginable as it sounds, child maltreatment is pervasive in the United States and ranks as one of the nation’s most ...

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Solving the Problem of Hunger Yields Huge Economic Benefits

Even beyond the obvious physical and mental costs of food insecurity and the incalculable toll on the stability and dignity of families across the United States, there is also a tremendous economic cost. Health care needs of people who are food insecure are higher due to increased incidence and severity of disease. Health outcomes are also worse, reducing productivity and lifetime earnings. In addition, education ...

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The Importance of 25 Years of Projects Facilitated by the Texas Sales Tax for Economic Development

Catalyst for Growth: The Importance of 25 Years of Projects Facilitated by the Texas Sales Tax for Economic Development

On the occasion of its 25th anniversary, The Perryman Group estimated the economic and fiscal benefits of the Texas sales tax for economic development and found that projects receiving location, expansion, or retention assistance from the sales tax for economic development generate an overall impact (including multiplier effects) of $98.2 billion in gross product each year and almost 971,900 permanent jobs in Texas. Although there are many considerations ...

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Recent Milestones:

City of Houston Grants Fairway Energy Partners Tax Abatement

The City of Houston recently granted Fairway Energy Partners a tax abatement on a crude oil storage facility. From the company’s perspective, the abatement was a crucial element in the project going forward, and even with the abatement the tax benefits for the City of Houston stand to be substantial. The abatement represents a “win” for both the company and the City, and The Perryman Group is pleased to have been a part of the process.

Any discussion of economic incentives hinges on analysis of the benefits of the proposed project or location including not only the direct economic stimulus associated with the project, but also the multiplier effects through the economy. Understanding the scope of benefits can help ensure incentives are structured in such a way as to encourage desirable economic development while still generating tax benefits over time. (Click to read more), (Less)

In August 2015, The Perryman Group (TPG) was asked by Fairway Energy Partners to examine the potential economic impacts and other benefits of the development of the Pierce Junction Crude Oil Storage Facility and associated pipeline; the purpose of the analysis was to assist in negotiations regarding the tax abatement. The facilities involve significant capital investments during the construction phase and an increase in permanent jobs, business activity, and tax revenue for local governmental entities on an ongoing basis. The addition to local storage capacity can also help ensure the adequacy of supplies to the nearby Gulf Coast refinery complex and enhance Houston’s emergence over time as a major point of exchange.Using The Perryman Group’s proprietary impact assessment system, TPG estimated the potential incremental economic activity for the Houston-The Woodlands-Sugar Land Metropolitan Statistical Area (MSA) and localized the effects for the City of Houston. The economic benefits of Fairway’s Pierce Junction crude oil storage facility (including multiplier effects) during the construction of both phases total $195.8 million in output (gross product) and 2,334 person-years of employment for the City of Houston. The increase in business activity in Houston (which begins with upon completion of the first phase of the project) includes $8.0 million in output (gross product) each year as well as 73 permanent jobs.

The Perryman Group also found that all local taxing entities would likely experience significant gains in tax receipts stemming from Fairway’s Pierce Junction project, even considering possible tax abatements. The project has the potential to generate notable tax receipts for the City of Houston stemming from

  • real property taxes on the facility value during the abatement period and 100% beyond that time,
  • personal property taxes paid on crude oil inventory, and
  • taxes stemming from increased business activity including incremental retail sales and overall increases in property tax values associated with economic expansion.

Dr. Perryman also met with City officials to discuss the project and its economic and fiscal benefits.

Fairway’s Pierce Junction crude oil storage facility has the potential to serve as a notable source of economic stimulus for the City of Houston and surrounding area. It can generate jobs, increase tax receipts, and enhance Houston’s emergence as a market center for crude oil. The economic and tax implications of the facility were an important consideration in the abatement process, and by granting an abatement, the City of Houston has enabled the project to move forward while simultaneously generating future economic and tax benefits for the City as well as other taxing entities in the area.

Cheniere Ships First Load from Sabine Pass LNG Facility

In late February 2016, Cheniere loaded the first cargo of liquefied natural gas (LNG) produced at its Sabine Pass liquefaction project in Cameron Parish, Louisiana (just across the state line from Beaumont, Texas). The LNG was shipped to Brazil, where it was regasified and used to supply the Brazilian market, including power plants. The US currently has an overabundant supply of natural gas, and access to international markets helps support the industry while providing clean-burning fuel to other countries.

According to the National Gas Act, the Federal Energy Regulatory Commission (FERC) must approve any application to build or operate LNG facilities. The FERC’s review involves a number of perspectives including, among others, environmental effects, cultural and geological resources, land use, engineering and safety adequacy. As part of Cheniere’s successful application process, The Perryman Group (TPG) provided analysis on another required component: the socioeconomic impact. (Click to read more), (Less):

The Perryman Group analyzed the economic and fiscal benefits of Cheniere’s Sabine Pass liquefied natural gas facilities and Creole Trail Pipeline using TPG’s proprietary US Multi-Regional Impact Assessment System. In addition to a sizable construction stimulus, the investment involves substantial long-term economic benefits (including job creation) as well as increased tax revenue at the federal, State, and local levels. As noted, by providing access to global markets for US-produced natural gas, the project also supports exploration and development activity.
The Cheniere facilities lead to a sizable stimulus in a variety of sectors, as well as generating spillover benefits for an even wider range of businesses. At the same time, consumers around the world have the potential to benefit from access to reasonably priced, clean-burning natural gas. The Perryman Group, which has performed similar analysis for several other proposed LNG facilities in the US and Canada, congratulates Cheniere on this significant milestone, and is honored to have been a part of the process.