Impact DataSource Mar 9 2011


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  • Bidding costs $0.60, can be purchased in bid packs Offers Buy It Now on every auction Full refund for unused funds in a bid pack
  • Impact DataSource Mar 9 2011

    1. 1. Texas Economics Association Welcome to the TEA! Please have a seat! Check in with our treasurer. You can get one serving, “second helpings” at the stroke of 6pm. The meeting will begin shortly.
    2. 2. Texas Economics Association General Meeting #6 Today’s speaker: Dr. Paul Sheuren Economist Established in 1993, Impact DataSource is an Austin, Texas based economic consulting, research and analysis firm. Impact DataSource provides high-quality economic research – specializing in economic and fiscal impact analysis. Their firm is highly focused on supporting economic development professionals and organizations.
    3. 3. So what is QuiBids? October 2009 iPad for 5¢ Pay-to-bid each time, 60¢ Increments of a penny Buy-It-Now too high? Refunds? Gambling suit 2010? Odds must be shown? News ?
    4. 4. April 1, 2011 Leave March 1, 2011 Dallas Federal Reserve Keep the day open if you signed up!
    5. 5. Sunday, March 27, 2011 Zilker Garden Festival Sign-ups after spring break
    6. 6. Professor Minigolf @ Peter Pan Thursday, April 14, 6pm Registration Celebration week TEA members come as you like
    7. 7. TEA Officer Elections Wednesday, April 27 Must have enough points Also will be group picture day!
    8. 8. And now… Dr. Paul Sheuren Economist
    9. 9. Economic & Fiscal Impact Analysis Paul Scheuren
    10. 10. Overview <ul><li>About Impact DataSource and My Background </li></ul><ul><li>Economic Development Industry </li></ul><ul><li>Economic and Fiscal Impact Analysis </li></ul><ul><ul><li>Iowa Office of Energy Independence </li></ul></ul><ul><li>Notes on Career Path </li></ul><ul><ul><li>Skills </li></ul></ul><ul><ul><li>My story </li></ul></ul>
    11. 11. About Impact DataSource <ul><li>Impact DataSource, a 17 year old Austin economic consulting, research and analysis firm </li></ul><ul><li>Paul Scheuren and Jerry Walker, economists </li></ul><ul><li>Specialize in economic and fiscal impact analysis and developing related computer models </li></ul><ul><li>Done work for over 200 Texas cities and conducted analyses in approximately 25 states </li></ul>
    12. 12. Background <ul><li>Undergrad in Actuarial Science </li></ul><ul><ul><li>Temple University </li></ul></ul><ul><li>Worked as a compensation analyst at the Texas Association of School Boards </li></ul><ul><li>Masters in Economics </li></ul><ul><ul><li>Clemson University </li></ul></ul><ul><li>Started with Impact DataSource in January 2009 </li></ul>
    13. 13. Projects and Clients <ul><li>Projects </li></ul><ul><ul><li>Impact Report for a firm </li></ul></ul><ul><ul><li>Impact Model </li></ul></ul><ul><ul><li>Impact of a specific industry </li></ul></ul><ul><li>Clients </li></ul><ul><ul><li>Economic Development Organizations </li></ul></ul><ul><ul><ul><li>Cities, Counties, Chambers </li></ul></ul></ul><ul><ul><li>Relocating or expanding businesses </li></ul></ul><ul><ul><li>Universities, airports, hospitals etc </li></ul></ul>
    14. 14. Economic Development (ED) <ul><li>Cities, Counties, Metro areas and States have economic development departments or organizations </li></ul><ul><li>Attract new businesses and assist in business retention and expansion </li></ul><ul><li>Publicly funded, sometimes public-private partnership </li></ul>
    15. 15. Texas Economic Development Corporations <ul><li>500+ cities have elected to impose the local ED sales tax </li></ul><ul><ul><li>8.25% total sales tax </li></ul></ul><ul><ul><ul><li>6.25% goes to State of Texas </li></ul></ul></ul><ul><ul><ul><li>2% is local option - could be directed to ED activities </li></ul></ul></ul><ul><li>Type A sales tax - Manufacturing and industrial development </li></ul><ul><li>Type B sales tax – Quality of life improvements </li></ul>
    16. 16. Tools of Economic Development <ul><li>Property tax abatement </li></ul><ul><li>Sales tax rebate </li></ul><ul><li>Small business loans </li></ul><ul><li>Grants </li></ul><ul><li>Incentives </li></ul>
    17. 17. Economic Development Programs <ul><li>Texas Enterprise Fund (TEF) </li></ul><ul><ul><li>Fund is used as a final incentive tool where a single Texas site is competing with another viable out-of-state option.  </li></ul></ul><ul><li>Texas Emerging Technology Fund (TETF) </li></ul><ul><ul><li>Grants to help advance research, development, and commercialization of emerging technologies. </li></ul></ul><ul><li>Local EDO’s offer various incentives as well </li></ul>
    18. 18. Economic Development Consulting <ul><li>Certified Economic Developer </li></ul><ul><li>Economic and demographic analysis </li></ul><ul><li>Strategic planning </li></ul><ul><li>Target industry analysis </li></ul><ul><li>Industry cluster analysis </li></ul><ul><li>Feasibility studies </li></ul><ul><li>Economic impact analysis </li></ul><ul><li>Site location services </li></ul>
    19. 19. Components of an Impact Analysis <ul><li>Calculation of the value of a firm or project to a community over a 10-year period </li></ul><ul><ul><li>Economic impacts </li></ul></ul><ul><ul><li>Fiscal impacts – costs and benefits for local taxing districts </li></ul></ul><ul><ul><li>Incentive Analysis </li></ul></ul>
    20. 20. Economic Impacts <ul><li>Direct and indirect increase in economic output </li></ul><ul><li>Direct and indirect jobs created </li></ul><ul><li>Direct and indirect salaries created </li></ul><ul><li>The firm’s property added to local tax rolls </li></ul><ul><li>New residential property added to local tax rolls </li></ul><ul><li>Retail sales at the facility </li></ul><ul><li>Worker spending </li></ul><ul><li>Out-of-town visitor spending </li></ul>
    21. 21. Direct, Indirect and Induced Economic Impacts <ul><li>Direct Impacts – economic activity (jobs and workers’ earnings) generated by a project </li></ul><ul><li>Indirect Impacts – economic activity occurring in other businesses that supply inputs to the direct firm </li></ul><ul><li>Induced Impacts – economic activity resulting from direct and indirect workers spending money at grocery stores, gas stations, restaurants, etc. </li></ul>
    22. 22. Indirect and Induced Economic Impacts <ul><li>Estimated using multipliers specific to the industry and region </li></ul><ul><ul><li>REMI </li></ul></ul><ul><ul><li>IMPLAN </li></ul></ul><ul><ul><li>RIMS II – Regional Input-Output Modeling System maintained by the US Department Commerce - Bureau of Economic Analysis </li></ul></ul>
    23. 23. Fiscal Impacts <ul><li>Economic impacts translate into fiscal impacts </li></ul><ul><ul><li>Additional Revenues </li></ul></ul><ul><ul><ul><li>Sales taxes </li></ul></ul></ul><ul><ul><ul><li>Property taxes </li></ul></ul></ul><ul><ul><ul><li>Hotel occupancy taxes </li></ul></ul></ul><ul><ul><ul><li>Utilities </li></ul></ul></ul><ul><ul><ul><li>Utility franchise fees </li></ul></ul></ul><ul><ul><ul><li>Other taxes and user fees </li></ul></ul></ul><ul><ul><li>Additional Costs </li></ul></ul><ul><ul><ul><li>Costs of providing municipal services to new residents </li></ul></ul></ul><ul><ul><ul><li>Costs of providing utilities </li></ul></ul></ul>
    24. 24. Why an Economic Impact Analysis is Important <ul><li>Calculates net benefits for the city over 10 years </li></ul><ul><li>Allows an ED organization to objectively fashion incentive packages for prospects based on these expected benefits to the city </li></ul><ul><li>Allows an objective allocation of economic development funds to those prospects that promise the greatest returns for a community </li></ul>
    25. 25. Incentives <ul><li>Incentives are a city/ED organization investment in a firm or project </li></ul><ul><li>The returns on that investment are the additional net benefits for the city over the first 10 years </li></ul><ul><li>A financial analysis of this city/EDO investment can be made with the economic impact model with two measures of the soundness of the investment </li></ul><ul><ul><li>An average annual rate of return on this investment can be calculated </li></ul></ul><ul><ul><li>The payback period of this investment can be calculated </li></ul></ul>
    26. 26. Iowa Power Fund Project <ul><li>Iowa Office of Energy Independence engaged Impact DataSource to estimate the economic impact of projects funded by the Iowa Power Fund </li></ul><ul><li>31 renewable energy projects focused on: </li></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Research </li></ul></ul><ul><ul><li>Commercialization </li></ul></ul>
    27. 27. Economic Impacts In Iowa Table ES2: Employment During the Term of the Projects Year Direct Indirect Induced Total 2007 6 6 4 16 2008 19 20 14 53 2009 120 107 83 310 2010 158 120 98 376 2011 190 130 112 432 2012 84 89 66 239 2013 37 39 29 105 2014 37 39 29 105 Average Annual Employment 81 69 54 204
    28. 28. Scenario Analysis <ul><li>Analyzed four goals of Iowa’s Office of Energy Independence </li></ul><ul><ul><li>Reduce energy consumption in Iowa by 30% </li></ul></ul><ul><ul><li>Reduce vehicle miles traveled by 10% in Iowa </li></ul></ul><ul><ul><li>Increase wind capacity in Iowa to 10,000 MW </li></ul></ul><ul><ul><li>Consume 50% of Iowa’s biofuels in Iowa </li></ul></ul>
    29. 29. Skills <ul><li>Strong math foundation is key </li></ul><ul><li>Programming experience helpful – Visual Basic for Applications (VBA) </li></ul><ul><li>Excel is our primary analysis tool </li></ul><ul><li>Access or other database software </li></ul><ul><li>Comfort working with large datasets </li></ul><ul><li>Experience with statistics programs like STATA, SAS, and R is helpful </li></ul>
    30. 30. Job Search <ul><li>Internships and experience </li></ul><ul><li>Researched and contacted firms that do the type of work you want to do </li></ul><ul><li>Lots of positions require mathematical and statistical analysis </li></ul>