By Mary Scott Nabers - Houston Business Journal
Published: 08-06-08
Texans are well aware of the economic downturn that is impacting the entire country. While no industry sector is exempt during a slowdown the public sector is always somewhat immune.
Public sector spending in Texas as a whole is not expected to decline in any significant way — and although some regions are facing funding shortfalls many regions of the state will see major spending increases from governmental entities.
The State of Texas is anticipating a $10.7 billion surplus by the time the Legislature convenes in January. That fact should ensure that state agencies will not see budget cuts over the next couple of years.
A few school districts are scrambling for funds but most are fairly comfortable and a very large percentage of schools have newly approved bond money to spend.
Local governments will still build roads and repair bridges. There will be major outlays of funding to ensure that traffic can move.
Escalating gas prices have caused significant increases in public transit ridership. Many larger cities are being forced to increase routes and expand their daily operations.
Infrastructure critical services and public institutions will always generate millions of opportunities each year for private sector vendors.
Public safety is a major concern at every level of government and the spending trends will not be reversed in this area in the foreseeable future.
One prediction is that a sum nearing $1 billion will be spent in Texas over the next few years on items such as surveillance cameras emergency alert systems security software programs crime prevention and regional emergency operation centers.
Texas because of its proximity to Mexico will continue to receive federal funding to ensure safe border crossings provide for the safety of Texans living on the border and for drug-related law enforcement.
Almost every governmental entity throughout the country has initiated “green” programs as well as other types of environmental initiatives. These efforts will not be abandoned and most initially result in higher spending.
Green initiatives usually involve partnerships between public entities and private sector contractors.
Houston and other Texas cities have clean-air problems and no cutbacks will be seen in these programs. Other local governments are finding ways to fit alternative energy projects into their budgets.
The federal government offers grants and funding incentives that will continue to encourage spending in this area.
Technology purchases will continue because such expenses cannot be curtailed. Governmental agencies cities counties hospitals and universities simply cannot handle the population growth Texas is experiencing without significant spending in this area.
Technology refreshes new data management systems more wireless communication devices and financial reporting systems cannot be avoided.
Increased gas prices are also spurring sales of teleconferencing equipment. Training regional meetings telemedicine and distance-learning initiatives have turned to teleconference technology as a way to reduce costs.
Many cities have launched communication outreach programs to local residents. Such initiatives always involve private sector partners. The result has been a decrease in costs associated with police fire and emergency agencies. Information is easily distributed services are improved and costs are reduced.
School districts have similar efforts under way in many parts of the state. Schools are putting grades calendars homework bus schedules menus and sports programs online.
The Greater Houston Transportation and Emergency Management Center recently purchased an emergency notification system.
The State of Texas is about to rebid TexasOnline one of the state’s most successful outreach programs. At the same time it is rebidding the statewide telecommunications network.
The City of Arlington has contracted with a firm that will design a municipal marketing partnership program and Southlake has purchased point-to-point links for use in a planned crime-prevention video network.
Texans have been blessed in many ways. While the state is not immune to the national slowdown it is better positioned than most. Economic development efforts have benefited all industries.
In fact Texas was recently named the No.1 state for business. New home construction starts are down but prices are fairly stable.
Life in Texas is good and government contractors will find an abundance of opportunities.
MARY SCOTT NABERS is president and CEO of Strategic Partnerships Inc. a Texas-based firm that specializes in public sector research and procurement coaching. Contact her at mnabers@spartnerships.com.
