to households.37 National defense and other federal government services (state aid, subsidies to business, flood control, and so on) are distributed equally across native and immigrant families.

Among immigrant-headed households, we again observe significant variation in each cohort's net fiscal contribution. ''Other" immigrants contribute to the federal treasury at about the same rate as native households, whereas Asian immigrants also make a significant positive contribution. Immigrant households from Europe/Canada and Latin America both receive a net fiscal transfer from the federal primary budget. Immigrant households from Europe/Canada are older and receive significant Social Security and Medicare benefits; Latin American immigrant households have lower incomes and more children and therefore qualify for more federal income assistance. Comparing the estimates here with the national fiscal year 1994 estimates presented in the dynamic analysis presented in Chapter 7 reveals a downward (toward negative) bias in the estimated federal burden in the California sample. The cause of the bias is the lower incomes of immigrants in California. Thus, the numbers here are not representative of the average immigrant household nationwide—the focus of Table 6.5.

The Total Net Fiscal Burden of Current Immigrants

The estimates of local and state fiscal balances from Tables 6.2 and 6.3 can be combined with the estimates of the federal government fiscal balances adjusted for defense spending in Table 6.4 to yield estimates of the net annual fiscal impact (NAFIN) of all current immigrant-headed households in New Jersey and California on the native residents of those states (see Table 6.5, panel A). Tables 6.2 and 6.3 provide direct estimates of the average fiscal balance (TMEM), the most important component of - ΔTN and NAFIN. For state and local budgets, we

37  

Programs included in "transfers to households" in Table 6.4 include the federal share of AFDC, Medi-Cal, and SSI, and direct federal transfers to residents through federal, military, and railroad retirement and disability payments, unemployment compensation, workers' compensation, veterans' benefits, Pell grants, housing benefits, food stamps, school lunches, energy assistance, and the earned income tax credit.

treasury. If the average fiscal balance < 0, then the average household in this category receives a net transfer from the state or local treasury. Since the overall state budget must be in balance and (by assumption) state and local business revenues are fully allocated to pay for state and local business services, the overall household sector (column "all") must have an average fiscal balance = 0; see text.

Source: Calculations based on Clune (1996: Tables 1, 2, 3a, 5a, 6a, and 7a). Clune's expenditure and revenue estimates for FY 1995 are adjusted upward to reflect December 1996 prices as measured by the CPI-U index.



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