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CAROLE KEETON STRAYHORN • Texas Comptroller of Public Accounts
R
eport
December 2006
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I. Introduction
Much has been written in recent months about the costsand economic benefits associated with the rising numberof undocumented immigrants in Texas and the U.S. as awhole. Most reports tie the costs of the undocumented population to education, medical expenses, incarcera-tion and the effects of low-paid workers on the salariesof legal residents. Revenue gains to governments result-ing from undocumented immigrants consist primarily of taxes that cannot be avoided, such as sales taxes, variousfees and user taxes on items such as gasoline and motor vehicle inspections.This financial report focuses on the costs to the state of Texas; that is, services paid for with state revenue, includ-ing education, healthcare and incarceration. What govern-ment-sponsored services are available to undocumentedimmigrants is often determined by federal restrictions onspending (
Exibit 1
). The report also identifies areas of costs to local governments and hospitals. Finally, it analyz-es the $7.7 billion impact on the state’s economy as wellas state revenues generated by undocumented immigrants.The Comptroller’s report estimates that undocumentedimmigrants in Texas generate more taxes and otherrevenue than the state spends on them. This finding iscontrary to two recent reports, FAIR’s, “The Cost of Ille-gal Immigration to Texans” and the Bell Policy Center’s“Costs of Federally Mandated Services to UndocumentedImmigrants in Colorado”, both of which identified costsexceeding revenue.
EXhIBIT 1
Major Government-Sponsored Programs andteir Availability to Undocumented Immigrants
UnavailableAvailable
MedicareK-2 EducationMedicaidEmergency Medical CareCash Assistance(TANF-Welfare)Children with SpecialHealth Care NeedsChildren’s Health InsuranceProgram (CHIP)Substance Abuse ServicesFood StampsMental Health ServicesSupplemental SecurityIncome (SSI)ImmunizationsPublic Housing AssistanceWomen and Children’sHealth Services Job Opportunities forLow Income IndividualsPublic HealthChild Care and DevelopmentEMS
Source: United States Department of Health and Human Services.
UNDOCUMENTED IMMIGRANTSIN TEXAS:
A Financial Analysis of te Impact to te State Budget and Economy
“This is the first time any state has done a comprehensive financial analysis of theimpact of undocumented immigrants on a state’s budget and economy, looking at gross state product, revenues generated, taxes paid and the cost of state services.“The absence of the estimated 1.4 million undocumented immigrants in Texas in fiscal 2005 would have been a loss to our gross state product of $17.7 billion. Undocumentedimmigrants produced $1.58 billion in state revenues, which exceeded the $1.16 billionin state services they received. However, local governments bore the burden of $1.44billion in uncompensated health care costs and local law enforcement costs not paid for by the state.”
— Carole Keeton Strayorn, Texas Comptroller