Transcript BEA Regional Personal Income

“Looking Ahead"
BEA Regional Data Developments
Going Forward
James M. Zavrel
Navigating the Nevada Economy
Reno, NV
September 29, 2009
www.bea.gov
Recent Improvements—New
Products
▪ Advance personal income for
metropolitan areas in August 2009
 Expanded data—Earnings by sector
▪ Disposable personal income for metros
 Data through 2007
 Working paper on BEA Website
▪ Regional Price Parities
 “Comparing Price Level Differences Across
Geographic Areas” Nov. 2008 Survey of
Current Business
www.bea.gov
2
Comprehensive Revision
▪ Changes in definitions, in sources and
methods, and in presentation
 Occur about every 5 years
 Provide opportunity to make accounts
reflect the changing economy
▪ National release on July 31st
▪ State to release October 16th
▪ 1st county release in December
(compensation)
www.bea.gov
3
Comprehensive Revision
Changes in definitions
 Treatment of disasters
 Value of damage to fixed assets will no longer be
recorded as consumption of fixed capital
 No current period measure of production or income
will be affected by disasters
 Disaster-related insurance payouts will be
treated as capital transfers
 March 2009 Survey of Current Business p. 11
www.bea.gov
4
Comprehensive Revision
▪ Statistical and methodological changes
May 2009 Survey of Current Business
 Wages and salaries
 Employee contributions to IRS section 125
(cafeteria) plans
 28 states currently don’t report as wages
 Nevada—no
 Idaho—no
 Montana—yes
 Oregon—no
 Washington—yes
 2-3 % of wages
www.bea.gov
5
FY 2008 Budget Impact
▪ FY 2008 budget reductions affected BEA
▪ County industry detail has been reduced
 From subsector to sector level for 2008
 First release impacted—August 2009
personal income for metropolitan areas
 Full description of budget impact on BEA
Web site
www.bea.gov
6
FY 2010 Budget Initiatives
▪ Restore the substate subsector earnings
and compensation
 Cut in FY2008
▪ Accelerate county personal income
release to 10 months after calendar year
▪ GDP by county
▪ Price-adjusted measures of income &
product
www.bea.gov
7
Future Research Interests
▪ Improve county suppression system
▪ Pension satellite account
 Retirement income distributions by state
 Working paper on BEA website– “Accrual
Measures of Pension-Related Compensation and Wealth of
State and Local Government Workers”, August 2009
▪ Development of product-side estimates
 Personal consumption expenditures
 State government receipts and expenditures
▪ Gross output and double deflation
www.bea.gov
8