By Michael Williams Texas Railroad Commissioner
& Governor’s Competitiveness Council Chairman
Published: 08-08-08
Although the Texas economy is doing well in the midst of a nationwide economic downturn we must always focus on how to keep our economy strong in the years to come. As emerging nations offer lower-cost options to businesses and established economies grow more sophisticated we must prepare Texas to compete in an increasingly global economy.
In November 2007 Gov. Rick Perry created the Governor’s Competitiveness Council challenging this diverse group of 29 innovators from the public and private sector as well as the world of education to explore ways to enhance our state’s economic footing.
Since then that team has worked diligently to identify issues that are hampering our state’s growth and crafting workable solutions. As chairman of that dynamic group I had the pleasure of reporting our findings to Gov. Perry at the Competitiveness Council Summit on August 6th.
As a starting point we discussed the current strength of the Texas economy which can be credited in large part to our business-friendly economic climate that is based on our favorable tax structure a sensible regulatory system and a culture that encourages entrepreneurial efforts. This climate has drawn a large number of new companies and encouraged existing Texas companies to expand. As a result Texas continues to lead the country in job creation while nationwide unemployment has risen.
Even with our current strength the Council recognized several significant economic disconnects that will stunt our growth if they are not closed. They include gaps between what is taught in school and what students need to know to meet workplace demands the need to further diversify our state’s energy portfolio and a transportation infrastructure that is ill-prepared to accommodate our ongoing population growth. These are the challenges we must tackle to ensure future success for our state.
Following months of research competitive positioning assessments outreach to the public and private sector and passionate deliberation we submitted two documents for the governor and state’s consideration: the Council’s Report to the Governor and the Texas 2008 State Energy Plan.
The Council’s Report to the Governor examined six key areas of potential industrial growth mostly among areas of science and high technology and further identified several areas in which to focus competitive efforts. We then made comprehensive recommendations to help equip Texans for future success in these industries.
For instance the council confirmed a shortfall in educating our students in the core disciplines of math and science - skills that are indispensable in the increasingly high tech workplace. Even though Texas now requires students to complete four credits each of math and science to earn diplomas we can do a better job of preparing math and science teachers. We must also bring about a better alignment between state-funded higher education research and the critical needs of industry. This approach will result in graduates who are equipped with the tools to conquer college curriculum and excel in the workplace.
As people continue gravitating to Texas to take advantage of our premiere business climate we will be obligated to ensure efficient responsible business operation and to continue sensibly regulating the market as it changes. However a method must be put in place to guarantee that laws remain fair agencies act with speed and fairness and taxes are efficiently spent. Such steps will allow Texas to further focus on elevating our business recognition to the international level and ensuring that ideas born within our state are also developed and commercialized here instead of being taken elsewhere.
In conjunction with this report the council also drafted the Texas 2008 State Energy Plan. Without significant reforms in how we acquire and generate energy especially electricity Texas will be incapable of succeeding in any of the previously identified industry clusters.
Energy costs have increased requiring Texans to dedicate larger percentages of our income to keep the lights on drive to work and to run our stores and factories. It therefore becomes critical that Texas formulate an energy policy that keeps the lights on keeps energy rates competitive and continues to draw business to Texas.
Although there are many specific steps that must be taken in the near future to provide an abundant clean and reliable energy infrastructure the bottom line is that we must diversify our energy portfolio if we hope to meet the needs of our growing population. This includes developing responsible ways to extract oil from offshore deposits and natural gas deep within the Barnett and Haynesville Shales accelerate the transition to carbon capture and storage while expanding the share of renewable energy from wind biofuel solar and nuclear and wisely using the energy that’s produced.
The Council’s recommendations are now in the hands of Gov. Perry the Legislature state agencies and emerging industries. It is up to us to work together and take action. As a Council we are confident that these guidelines will better align Texas resources with industry needs to ensure a prosperous future for the state’s economy and all Texans. By generating and fostering a culture of competition we will ensure Texas’ ongoing success on a global level and create opportunities for Texans unlike ever before.
To view the Council’s Report to the Governor and the State Energy Plan in their entirety please visit: www.governor.state.tx.us/gcc.
