Issues

The Texas economy is the top growth economy in the nation according to a new economic analysis by the Dallas Federal Reserve Bank (www.dallasfed.org).

“The Texas economy remains strong and continues to grow at a stronger pace than the national economy…” a Dallas Federal Reserve Bank economist found.  The Texas economy continues to grow at a stronger pace than the national economy because of policy decisions made by the Texas Legislature.
 
During the recent special session, lawmakers passed the largest tax cut in Texas history, offering homeowners relief from high property tax rates and cutting the business tax rate from 4.5 percent to 1 percent or less.

The Texas Legislature also put into place common sense business regulations, infused more money into the state school system, enacted lawsuit reforms, and created programs such as the Texas Enterprise Fund to cultivate job growth in the state.

All of this led to Texas becoming to the top growth economy in the nation.

Today, the unemployment rate is down.  According to the Dallas Federal Reserve Bank, between January and August 2006, “employment growth… was 2.7 percent, an increase of 177,300 jobs."  The Texas Workforce Commission reports, between July 2003 and August 2006, Texas added 651,100 jobs.

The Dallas Federal Reserve Bank said, "compared with the nation, Texas employment [growth] was more than twice the national rate, year-to-date.  Growth was broad based across industries, with all sectors adding jobs.  Employment gains were most robust in energy and construction sectors." 

Housing construction and employment is healthy and holding.  According to the Dallas Federal Reserve Bank, construction employment “picked up again in the third quarter with 9.4 percent growth in July and August,” compared to just 1.8 percent nationwide.  Texas housing is significantly more affordable with modest price and sales increases compared to major states, including Florida, New York and California, and the nation as a whole.

Texas' manufacturing sector is growing.  The Dallas Federal Reserve Bank reported, “Texas manufacturing employment growth was 3 percent in August and 1.5 percent year-to-date, compared with 0.2 percent year-to-date nationwide.”

Meanwhile, Texas continues to be the #1 exporting state in the nation.  The Dallas Federal Reserve Bank states that, “Texas export growth continued strongly in the second quarter, thanks to the economic health of our trading partners.  Exports were up near 4 percent in the second quarter, following a 5 percent increase in the first quarter.