Fiscal Research Program¹
at the Andrew Young School of Policy Studies

The Fiscal Research Program (FRP) provides nonpartisan research, technical assistance and education in the evaluation and design of state and local fiscal and economic policy, including both tax and expenditure issues. The FRP mission is to promote the development of sound public policy and public understanding of issues concerning state and local governments. Established in 1995, the program helps provide information to state and local governments so they can make informed decisions about complex fiscal issues. The program has a full-time staff and affiliated faculty from throughout Georgia State and elsewhere who lead its research projects.

One of the objectives of the FRP is to help inform and stimulate debate on fiscal policy. The program publishes Policy Briefs, which are widely distributed summaries of longer reports, as well as essays on issues confronting the state. The program also organizes periodic Seminars, Workshops, Luncheons and Conferences during which fiscal policy makers, administrators, and faculty discuss fiscal policy issues.

The Fiscal Research Program is one of three units under the domestic policy programs of the AYSPS. The activity reports of the other two, the Office of Community Outreach and Partnerships and Research Atlanta, are described in the following sections. David L. Sjoquist is director of Domestic Programs and director of the Fiscal Research Program.

In This Page

• Research Agenda
• Reports
• Visitors and Other Activities
• Projects
• Technical Assistance

Research Agenda

The research agenda of the Fiscal Research Program is composed of three broad categories: Intergovernmental Issues, Tax Policy, and the Georgia Economy. Each category is comprised of a set of projects that are FRP focus areas for state policy. Lead researchers for each project are identified below.

Intergovernmental Issues:

Education Finance Project. Ross Rubenstein. Explores issues associated with education financing in Georgia.

Intergovernmental Fiscal Relations Project. Sally Wallace. Explores issues inherent in relationships between state and local governments.

Urban Policy Agenda Project. David Sjoquist. Involves the study of urban policy in Georgia.

Tax Policy:

Business Taxation Project. Martin Grace. Addresses the taxation of banking, insurance, and corporations in general.

Income Taxation Project. Sally Wallace. Studies effects and reform of state and local income taxation.

Property Tax Project. David Sjoquist. Focuses on the structure, administration, and effects of property taxation.

Sales and Excise Taxation Project. Roy Bahl. Studies the structure, administration, and effects of sales and excise taxation.

Tax Modeling Project. Kelly Edmiston. Involves the development of a sophisticated computer-based model for use in the analysis of tax policy proposals.

Telecommunication/Public Utilities Project. Bruce Seaman. Focuses on alternatives in the taxation of public utilities.

The Georgia Economy:

Economic Development Project. Jeanie Thomas. Addresses the many issues relevant to the State's economic development efforts.

Georgia Data Project. Julie Hotchkiss. Involves development of a database built on the Unemployment Insurance records from the Department of Labor, welfare records for the Department of Human Resources, and other agency databases.

Georgia Economy Project. David Sjoquist. Studies various sectors and aspects of the Georgia economy such as banking, changes in the distribution of income, and changes in the location of retail sales.

Workforce Development Project. Francis Rushing. Involves a review of workforce development programming in the nation and Georgia.

Reports

Recent Reports

Economic Development: Report of Statewide Results of Georgia Poll July 2000. Applied Research Center/Fiscal Research Program. Jeanie Thomas and William J. Smith.* This report presents results of an annual survey on economic development activities in the State.

State and Local Government Choices in Fiscal Redistribution. Roy Bahl, Jorge Martinez-Vazquez, and Sally Wallace. This report explores the factors that are associated with the level and nature of states' income redistribution programs.

A Decade of Budget Growth: Where Has the Money Gone? Alan Essig. This report presents an analysis of state budget growth between fiscal years 1991 and 2000. Specifically, policy decisions that drive the budget increases are highlighted.

An Analysis of Georgia's Economic Development Tax Credit Incentives. Dagney Faulk,** Keith R. Ihlanfeldt, David L. Sjoquist, William J. Smith,* Jeanie Thomas, and Kathleen Thomas.* This report presents an analysis of Georgia's economic development tax credit incentives, i.e., Georgia's BEST program.

Impact of the 1996 Summer Olympic Games on Employment and Wages in Georgia. Julie Hotchkiss, Robert E. Moore, and Stephanie M. Zobay.*

International Business and Foreign Investment in Georgia: The Impact of State Programs and Policies. Robert E. Moore. This report provides a review of the recent trends on international trade in Georgia and reviews Georgia's policy and programs related to international trade.

Handbook on Taxation, 6th Edition. Jack Morton and Richard Hawkins.** A quick overview of all state and local taxes in Georgia.

Provision of An Equitable Public School Finance Structure in Georgia. Ross H. Rubenstein. This report presents options for reducing inequities in the funding of Georgia's public school districts.

School Flexibility and Accountability. Ben Scafidi, Catherine Freman, and Stanley DeJarnett. This report presents a discussion and a menu of alternatives for school flexibility and accountability.

A Profile of Georgia's Economic Performance and Competitiveness. David L. Sjoquist, William J. Smith,* and Kathleen Thomas.* This report compares Georgia's recent economic performance and it's economic competitiveness relative to the U.S. and surrounding states.

State Tax Incentives in the Southeast. Jeanie Thomas. This report identifies basic features of state tax incentive programs in the southeastern states. Each state synopsis is followed by a brief summary of the 1999 statutory changes.

Profile of Georgia State Revenues 1974-1999. M. Kathleen Thomas.* This report provides detailed information on trends in Georgia's major revenue sources over the period 1974-1999.

Defining and Measuring High Technology in Georgia. Susan Walcott. This report defines and measures the high technology sector in Georgia.

Trends in Corporate Income Tax Receipts. Sally Wallace. This report analyzes trends in state corporate tax receipts and explanations for the decline in corporate tax revenue growth.

The Effect of the Growth in Elderly Population on State Tax Revenues. Laura Wheeler. This report explores the implications of an aging state population on income tax and sales tax revenues.

Forthcoming and In-Process Reports

A Single-Factor Sales Formula in the State of Georgia: Issues and Consequences. Kelly Edmiston.

Does Employment Growth in Small Urban Centers Benefit the Economies of Neighboring Counties. Benjamin Scafidi, William Joseph Smith,* and Mary Beth Walker.

Estimates of the Effects of Education and Training on Earnings. William J. Smith.*

The Georgia Sales Tax Revenue Impact from Electronic Commerce. Richard R. Hawkins.**

How Much Preference: Effective Personal Income Taxes for the Elderly. Sally Wallace and Barbara Edwards.*

Migration and Georgia's Labor Force. Amy Helling.

The Net Economic Impact of Large Firm Openings and Closures in the State of Georgia. Kelly Edmiston.

State Appropriation Flows to Local Government: The Case of Fulton County. Katherine G. Willoughby and John Matthews.

State Grants to Georgia Counties: A Comparative Report. Katherine G. Willoughby and John Matthews.

Visitors and Other Activities

The Fiscal Research Program was pleased to host visiting scholars during 2000. Visitors from Brigham Young University, University of West Florida and University of Prague traveled to Georgia State University to conduct research.

Gary Cornia (Professor, Romney Institute, Marriott School of Management, Brigham Young University) visited the Fiscal Research Program to participate in projects related to the taxation of electronic-commerce. Dr. Cornia provided valuable assistance in selected speakers related to the October panel discussion of Sales Taxation and E-Commerce.

Richard Hawkins** (Assistant Professor, Department of Marketing and Economics at the University of West Florida) visited during the year. He worked with the Fiscal Research Program on projects of fiscal importance and the Sixth Edition of "Georgia Taxes, A Handbook on Taxation."

Saloua Seheli** (Former Assistant Professor of Economics at the Center for Economic Research and Graduate Education and the Economics Institute of Charles University and the Czech Academy of Sciences, Prague, Czech Republic, currently working with The Centers for Disease Control, Atlanta) continued her work in residence with the Fiscal Research Program. During this time, she completed research on growth patterns in Georgia relative to patterns in neighboring states. She is also applying computable general equiliburim analysis to determine the incidence of tax exporting and importing in Georgia and its effects on public good demand, to study tax evasion in Georgia, and the equilibrium effects at the state level of instituting a flat tax at the federal level.

The FRP participated in several presentations made to international visitors to the Andrew Young School of Policy Studies. In April, the FRP participated in presentations sponsored by Research Atlanta and provided presentations to visitors from 18 countries about Privatization in the U.S. Economy. During the year additional international visitors learned about various economic development research conducted in the Andrew Young School of Policy Studies.

The FRP hosted seminars and visiting lecturers on the following subjects:

Sally Wallace (Georgia State University) spoke on What the Andrew Young School of Policy Studies did in Russia, February 2000.

Howard Chernick (CUNY) spoke on the Determinants of Sub-National Tax Progressivity in the U.S., March 2000.

Tim Bartik (Upjohn Institute) spoke on the Aggregate Effects in Local Labor Markets of Supply and Demand Shocks, April 2000.

Ben Scafidi (Georgia State University) spoke on Choice and Outcomes in Pre-K: The Case of Georgia, September 2000.

Len Burman (Office of Tax Analysis, U.S. Department of Treasury) spoke on Tax Policy as Social Policy, October 2000.

Jeff Grogger (University of California, Los Angeles) spoke on Time Limits and Welfare Use, November 2000.

In May, the Fiscal Research Program, the Applied Research Program, and the GSU College of Education sponsored a presentation by Dr. Henry Levin, the William Heard Kilpatrick Professor of Economics and Education and Director of the National Center for the Study of Privatization in Education at Teacher's College, Columbia University. Dr. Levin spoke on the "New Wave in Education Policy."

In October, the Fiscal Research Program presented a day-long program on the taxation of e-commerce. Academic visitors included: Gary Cornia (Brigham Young University), Bill Fox (University of Tennessee), Richard Hawkins (University of West Florida), and John Mikesell (University of Indiana). Participants in the program included appointed and elected state government officials, business leaders, lawyers, and faculty from the Andrew Young School of Policy Studies. Sally Wallace served as moderator.

Projects

Affordable Housing Needs Assessment and Strategies. David Sjoquist. This project, funded by the Georgia Institute of Technology, derived and analyzed empirical data on program performance, assessed organizational models, and presented findings to the Affordable Housing Advisory Committee. ($7,500)

Analysis of Effect of Training on Earnings. William Smith* and Lakshmi Pandey. This project, funded by the State of Georgia Office of Planning and Budget, provided analysis and developed estimates of the effects of different types of training on wages. ($5,700)

Analysis of Textile Workers. Julia Melkers, Lakshmi Pandey, Francis Rushing, David Sjoquist, and Jeanie Thomas. This project, funded by the State of Georgia Office of Planning and Budget, studied the cut and sew industry, focusing on policies to assist workers impacted by plant closings. ($26,202)

Economic Development Incentives for High Wage Jobs. David Sjoquist. This project, funded by the State of Georgia Office of Planning and Budget, evolved into an analysis for Georgia State Governor Roy Barnes of Georgia's economic development tax credit program. ($20,463)

Economic Development Issues. Kelly Edmiston, Amy Helling, Julia Melkers, Ben Scafidi, and Mary Beth Walker. This project, funded by the State of Georgia Office of Planning and Budget, will look at: Local Economic Development Incentives; Indigenous and In-Migrate Labor Force; Do Smaller Urban Centers Impact Their Regional Economies?; and Net Effect of New Jobs. ($131,802)

Georgia Administrative Data Project. Julie Hotchkiss. This grant, from the Atlanta Private Industry Council, supports research on the evaluation of the role of geography (space) in successful transition from welfare to work. ($54,006)

Georgia Administrative Data Project. Julie Hotchkiss. This grant, from the U.S. Department of Labor through the University of Baltimore, provides research on the evaluation of trends in transitions from welfare to work as part of a multi-state research project. ($46,035)

Georgia Administrative Data Project. Julie Hotchkiss and Lakshmi Pandey. This grant, also from the U.S. Department of Labor through the University of Baltimore, matches adult AFDC/TANF recipients with quarterly wage earning for 95.1 through 96.4. ($2,500)

Labor Market and the Supply of Teachers. Catherine Freeman, Ben Scafidi, and David Sjoquist. This project, funded by the Georgia Teaching Force Center, focuses on the relationship between broader labor market trends and the supply of teachers ($22,000).

Land Value Taxation Seminar. David Sjoquist. With funding from the Lincoln Institute on Land Policy, the Fiscal Research Program will present a conference on land value taxation. ($25,000)

Measuring the Size and Dimensions of the "High-Tech" Industry in Georgia. Jeanie Thomas and Susan Walcott. This project, funded by the State of Georgia Office of Planning and Budget, develops an appropriate definition of "high-tech," measures the size of the high-tech industry in Georgia and the different components of that industry, and creates a website which will communicate the information generated in the project. ($13,090)

Neighborhood Collaborative. David Sjoquist. This project provided a grant that will allow GSU to continue the community building efforts of The Atlanta Project. ($850,000)

Regional Development Plan Update. Thomas Weyandt. This project provided technical assistance to the Atlanta Regional Commission in the update of regional development policies and the integration of those policies into the Regional Transportation Plan (RTP). Principal outcomes included the land use elements of a proposed RTP in conformity with air quality requirements, the establishment of a new regional Land Use Coordinating Committee to advocate land use development alternatives and a major commitment of funds to a new Activity Center/Town Center Investment Policy Studies planning and implementation process. ($116,642)

Regional Leadership Foundation. Thomas Weyandt. This project continues to provide an update and documentation of regional benchmarks for per capita income, birth to teenaged mothers, child care, children in poverty, juvenile crime, school drop outs and commuting time. ($6,774)

Research and Analysis Assistance to the Georgia Department of Industry, Trade, and Tourism. David Sjoquist. This project provides ongoing research for the Department of Industry, Trade, and Tourism. ($35,000)

Roles and Authority of School Boards. Catherine Freeman. This project, funded by Georgia Power, investigated the roles and authority of local school boards across the country. ($5,000)

Welfare and Employment. Lakshmi Pandey. This project provided data on welfare and employment for Portland State University. ($1,645)

Workforce Development Strategy. Jeanie Thomas. This UGA/DOL Cooperative Services project is funded by the Georgia Department of Labor and the University of Georgia to provide research and consultation services to prepare for the design and implementation of a comprehensive and integrated workforce development strategy. ($25,300)

Workforce Development Strategy. David Sjoquist and Jeanie Thomas. This project, funded by the State of Georgia Office of Planning and Budget, provided a regional action plan for the 10 County (Region 3) area as defined by House Bill 1650. ($55,348)

Technical Assistance

Alan Essig provided research assistance to the Rural Research Consortium, an inter-university research group which includes Georgia State University, Georgia Institute of Technology, and the University of Georgia. He also participated in the work of the Technical Advisory Council (TAC) to the Georgia Rural Development Council. Alan continues to provide assistance to the State of Georgia Senate Research Office and Office of Planning and Budget which includes his membership and work with the Georgia Occupational Review Council.

Catherine Freeman and Ben Scafidi provided ongoing assistance to the Georgia Governor's Education Review Commission.

Martin Grace provided ongoing research assistance to the State of Georgia Senate and House Insurance Legislative Committees and to the House Insurance Premium Study Committee.

Julie Hotchkiss provided ongoing technical assistance to the Georgia Department of Human Resources.

Julie Hotchkiss and Lakshmi Pandey provided ongoing assistance to the Armstrong State University working with ES202 data from 1979 to 1997. They also work with the State of Georgia Budgetary Responsibility Oversight Committee on the TANF recipients project.

Bruce Seaman continued research support for the Joint Study Committee on Franchise Fees and Conditions, Rights of Way, and Tax Implications of Competitive Markets, and published the report, "An Analysis of Franchise Fees in Georgia" for the committee.

David Sjoquist, Jeanie Thomas, Lakshmi Pandey, William Smith,* and Kathleen Thomas* provided analysis of Georgia's Economic Development Tax Credit Incentives for the State of Georgia Governor, Roy Barnes.

Jeanie Thomas provided ongoing assistance to the State of Georgia Budgetary Responsibility Oversight Committee, Department of Community Affairs, Department of Industry, Trade and Tourism, the Office of Planning and Budget, and the Georgia Economic Developers Association. She also provided research assistance to the Rural Research Consortium, an inter-university research group which includes Georgia State University, Georgia Institute of Technology, and the University of Georgia, and participated in the work of the Technical Advisory Council (TAC) to the Georgia Rural Development Council. Jeanie was invited to serve a second term as chairperson of the Public Policy Research Committee of the Georgia Association of Economic Developers.

Sally Wallace and David Sjoquist provided ongoing assistance to the State of Georgia Department of Revenue and the Governor's Office and the State Legislature on Tax Proposals.