http://www.easttexasreview.com/story.htm?StoryID=5849
With more than half of the 50 United States of America bogged down with financial woes, Texas is weathering the monetary collapse much better than most. This is a testament to the Lone Star State?s political and economic leaders? ability as they fight off the massive recession that has most of America and the rest of the world strapped. Mary Scott Nabers is president and CEO of the Austin based government relations procurement consulting firm Strategic Partnerships, Inc. She is clear on the main reason for the resiliency of the state?s overall cash flow.
?The diversity of the state?s economy is allowing Texas to withstand the current instability seen in the national economy, and that is good news for vendors,? she said.
California legislators are struggling with a budget deficit of more than $22 billion for Fiscal 2009, which started last June. New York State?s spending has outstripped its income, leaving it with a $4.9 billion deficit for the fiscal year, while Florida politicians have a $3.4 billion deficit on their hands. Financially ailing states are turning to such extreme measures as heavy borrowing at higher-than-average interest rates, sweeping spending cuts and dipping into Rainy Day Funds and other reserves. These deficits are increasing while revenues are depleting, but Texas is staying afloat.
The legislature will convene in Austin in January, and the lawmakers will enjoy a rare advantage--a budget surplus estimated at $10.2 billion with another $7 billion in the Rainy Day fund. This will provide a boon in business opportunities for service providers and vendors.
* Texas has low taxes, no income tax, and moderate regulations, making it an attractive location for doing business. CNBC and CEO Magazine both listed Texas as the best place to do business in 2008. Financial Times ranked Texas as having the nation?s best state economy.
* The state?s reserves of oil and natural gas bring in additional capital.
* Sales tax revenues are still strong.
* Texas? status as a pay-as-you-go state insures a balanced budget and no deficit spending.
* The $200 million Texas Emerging Technology Fund invests in companies and universities that attract high-tech jobs and helps new companies survive until they become profitable and self-sustaining. The Texas Enterprise Fund recruits and nurtures new business, resulting in 51,600 new jobs and $13.6 billion in capital investment.
* Over the past five years Texas has created 1.2 million new jobs. Nearly half the new jobs created in the entire United States this past year have been in Texas.
* The unemployment rate in Texas is far lower than the national average. While national unemployment rates worsen, Texans? employment rates are improving, with 252,000 new jobs created during the past 12 months.
?Simply put, this means that as 2008 winds to a close, Texas, more than any other state, is a prime focus area for business opportunities for vendors,? said Nabers.
It's a shame other states have not followed the Texas model of government. While other states have doubled government spending of worse over the past 15 years, Governors Bush and Perry haven't made that mistake.
Low taxes and pro business has proven to be the way to go, while states that pile on healthcare spending are struggling.
With more than half of the 50 United States of America bogged down with financial woes, Texas is weathering the monetary collapse much better than most. This is a testament to the Lone Star State?s political and economic leaders? ability as they fight off the massive recession that has most of America and the rest of the world strapped. Mary Scott Nabers is president and CEO of the Austin based government relations procurement consulting firm Strategic Partnerships, Inc. She is clear on the main reason for the resiliency of the state?s overall cash flow.
?The diversity of the state?s economy is allowing Texas to withstand the current instability seen in the national economy, and that is good news for vendors,? she said.
California legislators are struggling with a budget deficit of more than $22 billion for Fiscal 2009, which started last June. New York State?s spending has outstripped its income, leaving it with a $4.9 billion deficit for the fiscal year, while Florida politicians have a $3.4 billion deficit on their hands. Financially ailing states are turning to such extreme measures as heavy borrowing at higher-than-average interest rates, sweeping spending cuts and dipping into Rainy Day Funds and other reserves. These deficits are increasing while revenues are depleting, but Texas is staying afloat.
The legislature will convene in Austin in January, and the lawmakers will enjoy a rare advantage--a budget surplus estimated at $10.2 billion with another $7 billion in the Rainy Day fund. This will provide a boon in business opportunities for service providers and vendors.
* Texas has low taxes, no income tax, and moderate regulations, making it an attractive location for doing business. CNBC and CEO Magazine both listed Texas as the best place to do business in 2008. Financial Times ranked Texas as having the nation?s best state economy.
* The state?s reserves of oil and natural gas bring in additional capital.
* Sales tax revenues are still strong.
* Texas? status as a pay-as-you-go state insures a balanced budget and no deficit spending.
* The $200 million Texas Emerging Technology Fund invests in companies and universities that attract high-tech jobs and helps new companies survive until they become profitable and self-sustaining. The Texas Enterprise Fund recruits and nurtures new business, resulting in 51,600 new jobs and $13.6 billion in capital investment.
* Over the past five years Texas has created 1.2 million new jobs. Nearly half the new jobs created in the entire United States this past year have been in Texas.
* The unemployment rate in Texas is far lower than the national average. While national unemployment rates worsen, Texans? employment rates are improving, with 252,000 new jobs created during the past 12 months.
?Simply put, this means that as 2008 winds to a close, Texas, more than any other state, is a prime focus area for business opportunities for vendors,? said Nabers.
It's a shame other states have not followed the Texas model of government. While other states have doubled government spending of worse over the past 15 years, Governors Bush and Perry haven't made that mistake.
Low taxes and pro business has proven to be the way to go, while states that pile on healthcare spending are struggling.
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