in governmental services would have been just about funded 



2 

 directly through OCS activity. Taxes could have then been 



reduced or this amount could have been available to provide 



more services. 



The situation in Texas is similar, but not as severe due 

 to the relatively lower level of OCS operations in that state. 

 In 1974, an attempt was made by the State of Texas to estimate 

 the future impact of OCS production resulting from Federal 

 lease sales made and scheduled through 1975. The esti- 

 mated annual impact of OCS production in the Federal 

 area of jurisdiction on employment and government reve- 

 nues was tabulated (Table 4.5). 



The 1970 Census of Population indicates that in 1970 there 

 were 2.58 people for every person employed in Texas. There- 

 fore, the total population associated with the 69,034 employees 

 related to offshore production was estimated to be 177,961. 

 In fiscal year 1971-72, the cost of providing state and local 

 government services in Texas was $622 per capita. Thus, the 

 tt)ta'l expenditures by state and local governments to provide 

 ■necessary services to 177,961 people is approximately 

 $111 million per year. Since the annual revenues of state 

 and location governments is expected to be only $48.9 million, 

 offshore production in the Federal areas of jurisdiction is 

 projected to result in a net cost to state and local govern- 

 ments of $62 million per year (Grubb and McCray, 1974: 7-0). 



2 

 This does not include personal income taxes generated by 



OCS employment. 



137 



