Better Jobs Act Report
November 3, 2008
The Honorable Rick Perry
The Honorable David Dewhurst
The Honorable Thomas R. Craddick
Members of the 81st Legislature
Ladies and Gentlemen:
The 77th Legislature (2001) adopted the Better Jobs Act (Act), which authorizes cities to establish municipal development corporations to provide additional educational and job training opportunities in their communities. The Act requires municipal development corporations to submit an annual report of their activities to the Comptroller. Our office is charged with compiling this information and providing it to the Legislature in a biennial report. This letter will serve to comply with that requirement.
The Legislature determined a skilled and educated work force would effectively reduce underemployment and unemployment in the state. As a result, the Act also enables municipalities in Texas to develop additional resources such as sales and use taxes to invest in economic development programs such as job training, early childhood development, after-school programs, higher education scholarships and literacy programs.
Municipalities may levy a sales and use tax for the benefit of the corporation if the tax is authorized by a majority of the voters of the municipality in an election called for that purpose. Since the Act’s approval, only the City of Coppell has adopted a sales and use tax for the benefit of a municipal development corporation. The sales tax was implemented in January 2002 and abolished in an election held in November 2007. The sales tax was terminated by the Comptroller on March 31, 2008. The city reported that the Coppell Education Development Corporations will continue funding its mission until funds are depleted. At that time, the corporation will be dissolved.
During fiscal 2006 and 2007, the Coppell Education Development Corporation received nearly $10.3 million in sales tax revenue and an additional $584,102 of interest earnings on a fiscal year end fund balance of nearly $8.8 million. The Corporation made grants totaling $5.4 million to four educational institutions that serve children in the city, including the Coppell, Carrollton-Farmers Branch and Lewisville independent school districts and the North Hills School, a charter school headquartered in Irving. Exhibit 1-1 shows the complete financial activity for the corporation for fiscal 2006 and 2007. Exhibit 1-2 details activity, including accumulated fund balances, since the corporation’s first report in fiscal 2002.
I hope you will find this report helpful.
Sincerely,
Susan Combs
Exhibit 1-1
Coppell Education Development Corporation
Municipal Development Corporation Report
Fiscal 2006 and 2007
| Revenue | 2006 | 2007 | Total |
|---|---|---|---|
| Sales tax revenue | $4,926,671 | $5,327,312 | $10,253,983 |
| State/federal grants and matching contributions | $0 | $0 | $0 |
| Rental/fees/user fees income | $0 | $0 | $0 |
| Bond proceeds/loans obtained | $0 | $0 | $0 |
| Other revenue | $203,485 | $380,617 | $584,102 |
| Total revenue | $5,130,156 | $5,707,929 | $10,838,085 |
| Expenditures | 2006 | 2007 | Total |
|---|---|---|---|
| Personnel | $0 | $0 | $0 |
| Administration | $0 | $0 | $0 |
| Marketing and promotion | $0 | $0 | $0 |
| Direct business incentives | $0 | $0 | $0 |
| Job training for corporation’s personnel | $0 | $0 | $0 |
| Debt service | $0 | $0 | $0 |
| Capital costs | $0 | $0 | $0 |
| Section 379A.051 Payments | $2,440,068 | $2,974,909 | $5,414,977 |
| Payments to taxing units | $0 | $0 | $0 |
| Total expenditures | $2,440,068 | $2,974,909 | $5,414,977 |
| Unallocated funds | $2,690,088 | $2,733,020 | $5,423,108 |
Note: Totals may not sum due to rounding.
Source: Texas Comptroller of Public Accounts
Exhibit 1-2
Coppell Education Development Corporation
Municipal Development Corporation Report
Fiscal 2002 to 2007
| Revenue | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | Total |
|---|---|---|---|---|---|---|---|
| Sales tax revenue | $1,170,732 | $2,061,104 | $2,606,636 | $3,419,893 | $4,926,671 | $5,327,312 | $19,512,348 |
| State/federal grants and matching contributions | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Rental/fees/user fees income | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Bond proceeds/loans obtained | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other revenue (Interest) | $2,079 | $11,051 | $20,086 | $69,431 | $203,485 | $380,617 | $686,749 |
| Total revenue | $1,172,811 | $2,072,155 | $2,626,722 | $3,489,324 | $3,489,324 | $5,707,929 | $20,199,097 |
| Expenditures | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | Total |
|---|---|---|---|---|---|---|---|
| Personnel | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Administration | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Marketing and promotion | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Direct business incentives | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Job training for corporation’s personnel | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Debt service | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Capital costs | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Section 379A.051 Payments | $345,000 | $1,219,502 | $1,948,386 | $2,508,674 | $2,440,068 | $2,974,909 | $11,436,539 |
| Payments to taxing units | |||||||
| Total expenditures | $345,000 | $1,219,502 | $1,948,386 | $2,508,674 | $2,440,068 | $2,974,909 | $11,436,539 |
| Unallocated Funds | $827,811 | $852,653 | $678,336 | $980,650 | $2,690,088 | $2,733,020 | $8,762,558 |
| Fund Balance | $827,811 | $1,680,464 | $2,358,800 | $3,339,450 | $6,029,540 | $8,762,559 | $8,762,559 |
Note: Totals may not sum due to rounding.
Source: Texas Comptroller of Public Accounts