If you’re a sports fan of a certain age – like I am – you may remember the Sports Illustrated magazine cover of Larry Bird in 1979, with 2 college cheerleaders standing on either side of Larry with a finger to their lips and the headline read: “Larry Bird of Indiana State – College Basketball’s Secret Weapon.” (He wouldn’t be a secret much longer).

Well, I’m here to share what is NOT a secret. Texas is the best place in America for business!

And the future looks bright.

You’ve seen the news, right?
 

• 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

• The most Fortune 500 headquartered companies (55)

• And we’ve led the nation in population growth for the past 18 years

If we were a nation, the $2.4 trillion Texas economy would be the 8th largest in the world.

I write movie scripts, screenplays as a hobby. I like stories, especially good ones.

This a good one but.. it 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 flash back to 1995 (as a screenwriter, I love flashbacks).

I launched my consulting business in 1994 in Houston. That same year an organization called Texans for Lawsuit Reform (TLR) was launched in Houston and I became a consultant to the group. For context, that same year George W. Bush campaigned for Governor with tort reform as a priority issue.

“Dubya” is elected, TLR files 11 tort reform bills, and we pass 8 of those new laws, against all odds, against a very strong trial lawyer lobby.

(BTW, in the course of that legislative campaign, we were struggling to get rural legislators on our side. So I suggested that TLR founder Dick Weekley meet then Commissioner of Agriculture, Rick Perry (I had left Perrys’ staff to launch my firm), since Perry had served in the Texas House with many of the holdouts. That relationship became a political marriage made in heaven as Perry ascended first to Lt. Governor and then the longest-serving Governor in Texas history, with an treasure trove of TLR money).

Why is tort reform important as a foundation for economic growth? Seems boring. But, as you all know, a predictable and balanced civil justice system is good for business. (and all of us, frankly, if we care about how much we pay for stuff)

That was then, this is now. Let’s talk about the future.

I ask again -- why is Texas now the 8th largest economy In the world?

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 – TX added almost 78,000 jobs in August according to the Federal Reserve, a 12th straight month of growth, while most states are contracting.

In 2015, I co-founded an organization we called “Texas 2050” to begin planning for a job-creating, strong Texas economy. Our core mission was to position Texas for economic growth over the long term. And we’re 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 $ 18B (how many companies removed from prop tax rolls?)

• Made new investments in manufacturing by passing HB 4 to create Chapter 403

• Investments in public and higher education, including community colleges

• And kept a sizable surplus (expected to be almost $ 40B in 2025, including the Rainy Day Fund)

Another example is the space race and Texas’ role in it. This isn’t new in Texas; we’ve been at the forefront of space exploration for 60 years with Space Center Houston.

Morgan Stanley is forecasting the ‘space sector’ as a $1 trillion market within 20 years.

Elon Musk’s SpaceX has invested more than $1 billion in its Boca Chica facility along the border.

The Texas Legislature is betting on the industry. Last session, they established the Texas Space Commission and TX Aerospace Research and Space Economy Consortium and authorized funding for a Texas A&M space research facility at Johnson Space Center’s Exploration Park.
……….

Is this a Cinderella story? Not really – Texas has always been a leader.

It is a story about overcoming adversity.

It’s about a reboot and rebuild.

It’s about planning ahead. Anybody remember the oil and real estate crash in Texas in the mid-1980’s? That was a tough time for many. I recall many of my classmates at UT-Austin could’t find jobs out of college. Not long thereafter the Legislature had the foresight to establish the Economic Stabilization Fund, more commonly known as the “Rainy Day” Fund to sock some money away for the next tough time. Today, the Rainy Day Fund is approaching $20 Billion dollars.

(I went to work in the Governor’s Office – seemed like a safe haven in 1986 ha ha).

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

And one more story about my favorite hobby (other than writing) – golf and the power of incentives.

A few years ago the PGA Tour relocated its HQ from to Frisco, TX from Palm Beach Gardens, Florida in a $ 520M deal.

How did that deal get done? Tax incentives played a big role. (I did an in-depth piece about this for Texas CEO Magazine if you’re interested in learning more)

The PGA is investing $30 million to build a large headquarters, but the city of Frisco, its school district, and local economic development organizations will contribute a total of about $34 million in tax incentives – or “abatements,” if one prefers- to attract the project. And performance incentives of up to another $74 million to close the deal.

As a final sweetener, the state of Texas will allow PGA Frisco to run without hotel or sales taxes for a decade, along with waived mixed beverage taxes, for another $62 million in savings over the first 10 years to get the deal done.

Some people don’t like tax incentives - they call it “corporate welfare.” But also true some states are money-whipping companies to such a degree that Texas cannot unilaterally disarm. That’s a short-sighted recipe for disaster, IMO.

Incidentally, there’s a modernized tax incentive available to companies as of January 2024 called the “Texas Jobs, Energy, Technology, and Innovation Act” (JETI) to 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.

So, what can expect in the Legislative interim period leading to the 89th Legislature which convenes in January 2025:
 

• Business incentives

• Housing affordability

• School choice

• More property tax cuts

• Strengthening the power grid

• AI

• Workforce productivity

• Border security

• School safety

We are expecting a budget surplus of around $ 20 Billion when the Legislature convenes in January, and another $ 20 Billion in the Rainy Day Fund.

I mentioned earlier that Texas is the 8th largest economy in the world. Today, Texas will add another 1,500 jobs and U-Haul will rent 10 trucks on the way from CA to TX , and just 1 going the other way.

I’ll wrap up where we started.. Why all the success, what can you take away, and how can you be part of this great story (slow down):
 

• 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 eco devo ecosystem – from the executive branch (Gov’s office) to local Chambers and EDC’s. The BEST in the country.

• Robust and skilled workforce that’s going to get better because of the investment ALL of us are making. (because WE fund the state government)

Relationships matter. Your voice matters. Get to know your local elected officials. By “local” I mean those who represent you or your business – members of Congress, the Texas Legislature, County Commissioners, and City Council. They are making decisions every day that affect your business or your family.

Engage with your local Chamber, trade group, and EDC.

Consider a government relations plan -- and the requisite communications to support that -- as a cornerstone of your business plan.

We are set up for long-term success. Texas is a beacon for opportunity and innovation.

You might even say –