Opinion: #DEXIT

Welcome to Friday Forum, a weekly segment where we explore diverse opinions on the topics shaping Texas politics and business. The views expressed here represent the perspectives of individual contributors and are not endorsements by TXLege News. Our aim is to encourage thoughtful discussion and present a range of viewpoints on issues that matter to Texans. Email info@uslege.ai for submitting opinion contributions.

For Texas, the hits keep coming. You’ve seen the news:  

• Chief Executive Magazine has named Texas the best place for business for 23 straight years
• We just took home a 12^th straight Governor’s Cup from Site Selection Magazine for the best state for business
• We are the Top Exporting state for 21 years in a row
• Home to the most Fortune 500 headquartered companies (55)
• And we’ve led the nation in population growth for the past 18 years

Oh, and Texas is the 8^th largest economy in the world.

This is not an overnight success story, and it’s not the so-called “Texas Miracle.”  It’s a story about the value of free enterprise, visionary entrepreneurs, innovation, and YES – limited government that allows these things to flourish.

It’s a success story built – purposely -- over the last 30 years. Let me explain.

Let’s talk about the future and how we got here.

The Texas entrepreneurial spirit – yes.  Vast natural resources – true. But it’s also about state government not overtaxing and overspending.

And not just staying out of the way but supporting public policy to allow business – particularly small business, which is 55% of net new jobs– to flourish.

And we’re not slowing down; Texas added 78,000 jobs in August, a 12^th straight month of growth, while most states are contracting. Texas led all states for jobs gained over the month and over the year and again set new records for total jobs, the number of Texans working, and the size of the Texas labor force.

In the mid-2010’s, an organization I co-founded (“Texas 2050”) with major Texas business and trade organizations began planning for a job-creating, strong Texas economy. Our core mission was to position Texas for economic growth over the long term. Today, we are seeing some of those objectives come to fruition.

In 2023, the 88^th Texas Legislature:

• Made big investments in infrastructure (roads, water, broadband, semiconductors, and space)
• Cut property taxes for homeowners and businesses by $ 18 Billion
• Made new investments in manufacturing by passing HB 4 to create Chapter 403
• Invested substantially in public and higher education, including community colleges
• And kept a sizable surplus for good measure

What’s the next world-class industry for Texas to lead?  In addition to space and semiconductors, it may very well be data centers. A recent hearing of the Texas Senate Business and Commerce Committee made clear: expansion of the Texas data center sector will be critical to meet the needs of our modern economy.

In the digital age, data is not just a byproduct of our activities; it is the core asset that fuels innovation, drives efficiency, and propels economic growth.

As organizations increasingly rely on data analytics, cloud computing, and advanced technologies to gain a competitive edge, the demand for robust data center infrastructure has never been higher. The industry is poised to invest $ 200 Billion a year – and almost $ 1 Trillion over the next five years – in data centers to process information in our modern world. That’s an incredible amount of capital investment and Texas should see a good chunk of it if we don’t regulate ourselves out of the conversation.

This makes Governor Abbott, Lt. Governor Patrick, and others’ call to double investment in the Texas Energy Fund a wise move, indeed.

That data flow will include Artificial Intelligence (AI), supportive of legislative information like the USLege platform, another obvious boom sector that Texas can and should understand, lead, and control.  Some consider it a national security issue.

Forward-thinking isn’t new to Texas. The oil and real estate crash in Texas in the mid-1980’s was a tough time for many. Amid the crash, the Texas Legislature had the foresight to establish the Economic Stabilization Fund (ESF), more commonly known as the “Rainy Day” Fund, to sock money away for the next tough time.

Today, the ESF is approaching $20 Billion dollars and helps Texas keep the highest credit rating on the market.

Has Texas benefited from bad decisions in other states?  Sure.  But we didn’t follow those states over the cliff.

While Texas has inherent advantages and a policy climate built for growth, tax incentives still help. A modernized incentive called the “Texas Jobs, Energy, Technology, and Innovation Act” (JETI Act) will encourage development of projects for things to add capacity to our power grid, such as a natural-gas-fueled generator or batteries, production of hydrogen fuel, a seawater desalination project, oil and gas facilities, fossil fuel power generators and semiconductor fabricators.

I fully expect the 89^th Texas Legislature to continue investing in job growth, perhaps with emphasis on skills training and workforce development and, dare we say, more tax cuts.   After all, we are expecting a budget surplus of around another $ 20 Billion when the Legislature convenes in January.

I mentioned earlier that Texas is the 8^th largest economy in the world.  If recent trends continue, today Texas will add another 2,500 jobs and U-Haul will rent 10 trucks on the way from job-killing California to business-friendly Texas, and just 1 truck going the other way.

We are almost a quarter into the 21^st Century and a strong foundation is set to carry Texas for many more years.

• Texas has a public policy climate built for growth.  We encourage innovation, we don’t stifle it with needless regulations
• No state income tax – attractive for employers because their employees love it
• A strong economic development ecosystem – from the executive branch to local Chambers of Commerce and EDC’s, the best in the country
• A robust and skilled workforce that’s growing and adapting to innovation

We are set up for long-term success that we might someday call the “The Texas Century.”

Craig Casselberry is the Founder & CEO of Quorum Public Affairs, Inc. You can follow Craig on X and Linkedin.

We hope you enjoyed today’s read!

Stay connected with TXLege News on X and LinkedIn!

Welcome to Friday Forum, a weekly segment where we explore diverse opinions on the topics shaping Texas politics and business. The views expressed here represent the perspectives of individual contributors and are not endorsements by TXLege News. Our aim is to encourage thoughtful discussion and present a range of viewpoints on issues that matter to Texans. Email info@uslege.ai for submitting opinion contributions.

Texas Businesses to Lawmakers: Don’t Add to Employer Healthcare Costs

As Texas continues to lead the nation in economic growth, the mounting challenge of rising healthcare costs threatens to undermine our success. For businesses across the Lone Star State, providing competitive healthcare benefits is both a matter of employee satisfaction and a cornerstone of our economic stability. Healthcare costs remain a top concern for the state’s businesses, and government mandates toward employer-sponsored healthcare benefits present a significant challenge to maintaining competitiveness and supporting employees.

The Texas Association of Business (TAB) conducted the 2024 Texas Employers Healthcare Survey, gathering comprehensive insights into these challenges through over 200 responses from individual businesses across the state, collected via TAB’s members and chamber partners. The survey results offers a stark warning: without decisive legislative action, these escalating costs could jeopardize the state’s economic engine and constrain Texas businesses’ capacities for growth and employment, adversely raising prices for their goods and services. Lawmakers must act to shield employers from unsustainable financial pressures and ensure that healthcare remains an asset, not a liability, for Texas businesses.

According to the survey:

• 85% of Texas employers believe that healthcare costs are increasing at an unsustainable rate.
• 34% of respondents believe that healthcare benefits have become the fastest-growing expense in their business, surpassing even wages.
• 51% of surveyed employers say these escalating costs have directly interfered with their ability to raise salaries or hire new employees

More than half of respondents also concluded that government regulation of healthcare coverage is the cause of increased healthcare costs and oppose the introduction of any new state mandates that would further increase this cost.

This year’s Survey reflects many of the same – if not increased – concerns of the Texas legislature on the rising cost of healthcare for businesses from TAB’s 2022 Healthcare Survey. Our businesses’ concerns are not new.

For many Texas businesses, these costs are more than just numbers; they represent tangible barriers to growth, workforce investment, and the moral commitment to provide for their employees.

In Texas, where employer-provided health coverage insures roughly 14 million people, healthcare benefits are integral to attracting and retaining top talent. Over 75% of survey respondents identified health benefits as a crucial factor in workforce retention, with 36% ranking it as the most important benefit offered.

Yet, the rising cost of premiums – the primary reason 75% of businesses do not offer insurance – threatens employers’ ability to provide these healthcare benefits. These findings highlight the significant financial burden that rising healthcare costs impose on employers, often forcing them to reevaluate their ability to provide essential benefits.

The survey uncovers the growing opposition among Texas businesses to new state-imposed mandates that could further increase the cost of employer-sponsored healthcare benefits. More than 57% of respondents strongly oppose additional state regulations and more than 90% of employers support requiring cost estimates for any legislative proposal affecting health benefits. Texas businesses are calling for more transparency and accountability in policymaking.

We must not be complacent with policies that, in totality, infringe on the freedom and free enterprise that allows Texas to maintain a competitive and expansive economy.

Texas employers make clear that they want the Legislature to address the root causes of rising healthcare costs, not to pile on additional burdens. Specific solutions identified in the survey include:

• Transparency: 76% of respondents advocate for requiring healthcare providers to disclose their prices publicly.
• Flexibility: 73% want the option to purchase more affordable insurance plans without state-imposed mandates exceeding federal requirements.

Texas’ economic vitality depends on sensible healthcare policies that prioritize transparency and flexibility. Lawmakers must resist the temptation to impose additional mandates on employer-sponsored healthcare benefits. Instead, they should address the underlying issues driving up costs to ensure that Texas remains a place where businesses thrive, and where employees are protected.

To read more about the findings from TAB’s 2024 Texas Employers Healthcare Survey, please click here.

Glenn Hamer, President & CEO, Texas Association of Business

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Welcome back, friends‍

Miller urges GOP unity on the issue and supports expanding medical marijuana access while opposing recreational use.

Today’s Insights:

• Texas GOP Divided on THC Ban Plans
• Lawmakers Eye Social Media Restrictions for Minors
• Texas Grid Ready for Winter, but Cold Risks Remain

Image Credit: Brian Rosenthal, Houston Chronicle

Texas GOP Divided on THC Ban Plans

Texas Agriculture Commissioner Sid Miller disagrees with Lt. Gov. Dan Patrick on the future of THC in the state. Patrick recently announced a bill to ban all consumable THC but clarified it would not impact the Compassionate Use Program for medical cannabis. Miller, however, believes the GOP should unify on this issue and reflect the will of Texans, citing a Texas Lyceum Poll where 60% supported marijuana legalization. Although Miller opposes recreational marijuana use, he advocates for expanding medical marijuana access to all Texans with legitimate needs. He states:

“It’s about freedom. It's about less regulation. It's about less government. It's about freedom between you and your doctor and getting government out of your life.”

"So, I think it's a conservative issue."

Lawmakers Eye Social Media Restrictions for Minors

Texas lawmakers are considering measures to protect children from online dangers, including a proposed ban on minors creating social media accounts, outlined in House Bill 186 filed by Rep. Jared Patterson. Educators and law enforcement officials have raised concerns about cyberbullying, online grooming, and exposure to harmful content, much of which originates from students’ widespread access to smartphones, including on school campuses. Schools report difficulties in addressing these issues due to limited resources and students’ ability to bypass campus internet restrictions.

During legislative hearings, testimony highlighted the impacts of social media on minors, including cases of mental health struggles, exploitation, and grooming facilitated by online platforms. Proposed solutions include funding internet crimes units, deploying artificial intelligence to detect explicit content, and strengthening legal requirements for technology companies to monitor and remove harmful material. Law enforcement agencies report being inundated with thousands of monthly tips about online child exploitation but face challenges due to staffing shortages.

Supporters of House Bill 186 and other proposed initiatives point to studies showing nearly all teens and many younger children regularly use social media, often without adequate safeguards. The upcoming legislative session will prioritize addressing these risks while navigating challenges around enforcement and the role of technology companies.

Image Credit, FOX 4 KDFW

Texas Grid Ready for Winter, but Cold Risks Remain

Texas’ main power grid is better prepared for extreme cold this winter, thanks to new power generation and weatherization improvements made since the devastating 2021 Winter Storm Uri. ERCOT officials highlighted the addition of over 10,000 megawatts of capacity, including 5,155 megawatts of solar power, 3,693 megawatts of storage, 724 megawatts of natural gas, and 616 megawatts of wind. These upgrades have reduced the risk of grid emergencies during peak demand from 11.6% last winter to 8.7% this year. ERCOT meteorologist Chris Coleman forecasts a warmer-than-average winter overall but warned of a higher likelihood of extreme cold events, with current atmospheric patterns resembling those seen during Uri.

Governor Greg Abbott emphasized the state’s readiness this past week, pointing to legislative measures and ERCOT’s 2,892 inspections of facilities to enforce new weatherization standards. Despite the improvements, ERCOT acknowledged ongoing challenges, such as increased winter electricity demand, which reached a record-breaking 78,349 megawatts in January 2023. Additionally, renewable sources like solar and wind generate less power during cold months, making consistent supply a concern. Officials noted that while conditions are better than in 2021, another extreme storm would still test the grid’s resilience.

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