Texas Political Spotlight
2/19/2025

Texas Political Spotlight

Performance Pay & Pre-K: What’s Inside Texas’ Teacher Pay Bill
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SB 26 seeks to address the state’s teacher shortage with structured pay raises, expanded bonuses, and increased benefits for educators. Meanwhile, Texas has joined a multi-state lawsuit challenging New York's controversial Climate Change Superfund Act, which targets fossil fuel companies for past emissions, all while Texans brace for what will (hopefully) be our last major cold front of the year.

Today’s Insights:

  • Performance Pay & Pre-K: What’s Inside Texas’ Teacher Pay Bill
  • Texas Joins Fight Against New York Climate Law
  • Once Last Tango with the Texas Cold?

Image Credit: Texas Scorecard

Performance Pay & Pre-K: What’s Inside Texas’ Teacher Pay Bill

Sen. Brandon Creighton, R-Conroe, today introduced SB 26, which seeks to address the state’s ongoing teacher shortage by implementing structured pay raises, expanding performance-based bonuses, and increasing benefits for educators. The bill would provide annual salary increases for teachers with at least three years of experience, with larger raises for those in smaller districts. The bill also expands the Teacher Incentive Allotment, allowing more educators to qualify for performance-based bonuses and extending a similar evaluation system to school principals. Additionally, SB 26 would offer free pre-K to children of public school teachers and provide state-backed liability insurance to protect educators from legal disputes arising from their duties. With more national attention than ever, and as lawmakers weigh their options, the future of teacher pay increases remains to be discovered this session.

Image Credit: AP News

Texas Joins Fight Against New York Climate Law

Texas, along with 21 other states and four energy groups, has joined a lawsuit challenging New York’s Climate Change Superfund Act, arguing that the law is unconstitutional and conflicts with federal regulations, including the Clean Air Act and the commerce clause of the U.S. Constitution. The lawsuit, led by West Virginia and filed in federal district court in Albany, contends that the law unfairly imposes financial penalties on fossil fuel companies for past greenhouse gas emissions, requiring them to contribute to a $75 billion climate superfund over the next 25 years.

New York’s law is nothing more than an unconstitutional shakedown of vital American energy industries that form the bedrock of our national economic independence,” Paxton said. “In return for keeping the lights on and fueling our manufacturing, energy producers are being targeted for destruction by the left-wing policies of New York radicals.

- Ken Paxton, Press Release

Image Credit: San Antonio Express

Once Last Tango with the Texas Cold?

Texas is bracing for an extreme cold weather event from February 19-21, prompting the Electric Reliability Council of Texas to issue a weather watch. While ERCOT expects higher electrical demand and potentially lower reserves, officials maintain that grid conditions should remain stable. A public forecast shows that power supply is projected to exceed demand by a significant margin, with a surplus of 12,000 megawatts at its lowest point. The National Weather Service has issued extreme cold warnings, with temperatures expected to plummet into the single digits, potentially breaking an 86-year-old record in North Texas. Texas Governor Greg Abbott and ERCOT CEO Pablo Vegas have reassured residents that the state’s energy infrastructure is prepared to handle the cold spell, though Texans are encouraged to conserve electricity during peak hours.

Despite these assurances, Texans will always keep an eye on ERCOT’s ability to sustain power amid surging demand. Although this is not uncommon, the upcoming freeze revives memories of past winter storms that crippled the state’s grid, raising questions about the long-term reliability of Texas' energy infrastructure. Experts warn that while snowfall is expected to be minimal, freezing rain and wind chills as low as minus 15 degrees in some areas could create hazardous conditions. ERCOT’s handling of this event will be closely watched, as any failure could have significant political and economic repercussions. As Texans prepare for the cold, the state’s response will serve as a critical test of its resilience and readiness in the face of extreme weather.

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Opinion: The Texas Century
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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 12th 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 8th 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 12th 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 88th 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 89th 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 8th 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 21st 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.

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Opinion: Texas Businesses to Lawmakers
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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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Texas Political Spotlight: Texas GOP Divided on THC Ban Plans
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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.

We hope you enjoyed today’s read!

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