Perry Notes: June 2008

Previous Perry Notes: A Texas Protected

IN 2003, WHEN FACED WITH A $10 BILLION BUDGET SHORTFALL Texas had a choice: raise taxes or cut spending and grow our way out of the budget deficit. Many states faced similar challenges that year and many chose to raise taxes or increase spending. The Republican leadership in Texas chose a different route and the foundation was laid for the economic success that we see today.

In fact, in the first four months of 2008, the national economy lost 184,000 jobs, while Texas gained 69,300 jobs, bringing our total net new jobs created since July 2003 to 1,210,000–more than any other state.

AGGRESSIVE ON JOB CREATION

In 2003, Texas GOP leaders not only made the conservative decision to cut general revenue spending for the first time since World War II, but at the direction of Gov. Perry Texas became very aggressive in economic development and bringing jobs to Texas. This aggressive effort has made Texas the best place in the country for business and is the envy of the nation in job growth. In fact, the programs that Texas began to help bring jobs to our state have been so successful that other states are now emulating them.

The TexasOne Program, considered the "door opener" to recruit companies to Texas has played a significant role in bringing more than 25,000 new jobs and almost $10 billion in capital investment to Texas since 2004. Today, Texas tops the 2008 FORTUNE 500 and 1000 lists for the first time ever, with more company headquarters in Texas than any other state in the nation.

Likewise, the Texas Enterprise Fund – the nation's largest and most successful "deal closing" fund – has secured projects for Texas that are generating more than 51,400 new jobs and $13.6 billion in capital investment.

Another tool in our economic arsenal, the Emerging Technology Fund, gives Texas an unparalleled advantage in developing and commercializing new, innovative technologies by partnering with the private sector and our state universities. This forward-thinking approach to economic development is one reason Texas was recently named as one of the top 5 best places for biotechnology research. This approach has already proved its worth recently when a company that had received an ETF grant was purchased with Texas pocketing a 46 percent net return on its investment.

THE BIG FOUR

Of the four largest states, Texas has created 265,000 more jobs than its closest job creation competitor, New York (65,700 jobs) since January 2007. And if you look at just 2008 alone, Texas created 69,300 new jobs; California created 20,600 while the other two large states lost jobs.

With all four states facing budget deficits in 2003, only Texas took the conservative route. Below are the decisions made in 2003 and their consequences.

"To keep our economy strong, we need more tax cuts and greater spending restraint in 2009"
- Rick Perry

GROWING JOBS, NOT GOVERNMENT

A sharp difference between Texas and the nation is the type of jobs that are being created. Over the last twelve months (April 07 - April 08), Texas has added 262,000 new jobs. Of those new jobs, over 95% are private sector jobs. Over the same period, the U.S. added 462,000. Of those, 224,000, almost half, 48%, were government jobs. Put simply: The Texas strategy of growing jobs instead of government is working.

RECORD EMPLOYMENT

The April statewide unemployment rate fell to 4.1 percent, matching the record low for Texas and falling well below the U.S. unemployment rate of 5.0 percent. We are in our 24th consecutive month that employment has been above the 10-million mark, also a record.

"When budgets begin to tighten, many state politicians start to talk tax hikes. So credit Texas Governor Rick Perry for cutting taxes ($90 million in business taxes) as a way to keep his state as a national leader in job creation."
- Wall Street Journal, March 2008

"Texas dominated the FORTUNE 100 Fastest-Groing Companies list for 2007. The Lone Star State had eight companies in the top 25 and 32 total companies on the list – more than any other state."
- Fortune, September 2007

"Texas was recently named one of the top-five biotechnology economic development regions in the U.S."
- FierceBiotech, February 2008

"Texas was ranked as the No. 1 U.S. exporting state for six straight years. Texas’ exports were approximately $168 billion in 2007, representing an 11.45 percent increase from 2006."
- WiserTrade, February 2008

"For the third straight year, the nation’s leading executives rank Texas as the best state in which to do business, applauding the state for controlling taxes and spending as well as for its positive regulatory burden, quality of life and infrastructure."
- Chief Executive, January, 2008

"Texas dominated Forbes’ “Best Cities for Jobs in 2008” list, with five cities in the top 20. Austin, Fort Worth, Houston, San Antonio and Dallas ranked high among the places economists forecast are the best to work in the U.S. in 2008. McAllen is expected to have the highest job growth rate of the 100 cities evaluated."
- Forbes, January 2008

"Texas was named the 2007 State of the Year by Business Facilities magazine. The first annual ranking singles out the state with the most economically significant relocation and expansion projects of the year."
- Business Facilities, December 2007

"The challenge for our national economy in a world of competition is to become more like Texas and less like Ohio."
- Wall Street Journal, March 2008

LOOKING AHEAD

Like any good businessman will tell you, success doesn’t come from maintaining the status quo; it comes from the culmination of thoughtful foresight and innovative solutions. The nation’s best economy today thrives in the Lone Star State, and with conservative Republican leadership continuing to clear the paths so that more Texans can pursue their dreams, the Texas economic forecast it bright indeed. In fact, Gov. Perry has already called for increased spending restraint and additional tax relief in 2009. We will fill you in on the details of those proposals in future issues of PerryNotes.