Increase in County Govt Revenue
One of the major local impacts of the project I am modeling is from a huge increase in county revenue through property tax income and in lieu payments (i.e. community service fees and specialized payments) of about $9 million a year, from investors who reside outside the region. The county disperses $100k per year of this income to each of its cities. About a third of the remaining revenue is being used for long-term investments and the rest is spent on education, fire departments, etc.
Would it be appropriate to model the increase in county income of $9 million as a change in institutional spending patterns for the State/Local Govt Education, NonEducation, and Investment while ignoring the disbursements to cities? Or is there a better way to model this?
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IMPLAN SupportHi Sarah. Normally, you can model the new tax intake as a positive increase in general government activity. You will need to create your model with multipliers by navigating to Setup Activities>Activity Options>Import>Institution Spending Pattern and choose State/Local Govt NonEduction. The imported spending pattern will sum to $1. You would need to edit the Activity level by navigating to Setup Activity>Edit Activity to enter the portion of the total new budget to be spent on Non-education activity, then run the scenario to create impact results. For the education portion of the budget, you could go to Setup Activities>Activity Options>Import>Institution Spending Pattern and choose State/Local Govt Eduction. This spending pattern should also sum to $1. Again, you would need to edit the Activity level by navigating to Setup Activity>Edit Activity to enter the portion of the total new budget to be spent on education activity, then run the scenario to create impact results. We presume that you are making the assumption that the increased tax revenue is equal to the increased spending. Since all of the new revenue is coming from out of state investors, you don’t have to worry about modeling a corresponding negative loss of disposable household income by county residents. This approach would also assume that the cities would spend their share of the tax revenue is the same manner as the county. Thus, a county-wide analysis would be fine. Finally, if you know something about the nature of the long-term investments, you might consider importing a BEA investment spending pattern from the Utilities Section of your model that may better reflect their impact in the county.0
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