At a ceremony in Richardson, Governor Perry announced a new corporate headquarter in Texas that will create more than 400 jobs.
"I have the great privilege today to announce Richardson will be home to the new corporate headquarters for Virtual Computing Environment, with a $2.45 million Texas Enterprise Fund investment helping close the deal that will bring hundreds of new jobs to town."
Federal Reserve Bank of Dallas economists said Thursday that Texas could add 261,000 to 374,000 jobs this year, growing between 2.5 and 3.5 percent, based on movements in leading indicators. At that pace -- Texas jobs are already growing about 2.5 percent annually -- the state's unemployment rate could drop to 7 percent by year's end, economists Keith Phillips and Emily Kerr said in the bank's latest edition of Southwest Economy.
Separately, the Texas Workforce Commission said the state added 44,100 jobs in January from a month earlier, moving to just under 10.5 million. The growth was led by trade, transportation and utilities.
Texas claimed 424 business expansion projects in 2010, enough to win the Site Selection Governor's Cup for the year, Site Selection magazine said Tuesday.
Texas' 2010 count for new and expanded corporate facilities was 50 percent larger than the number it recorded in 2009 and beat Ohio, the second-place finisher in 2010, by 48 projects.
Texas factory activity picked up in February after a sluggish showing the previous month, the Federal Reserve Bank of Dallas said Monday.
The production index of the Dallas Fed’s monthly manufacturing survey rose to nearly 10, suggesting expansion.
Governor Perry delivered his State of the State address this week, proposing to consolidate or suspend non-critical state agencies in order to make state government more streamlined and efficient. The governor also outlined his priorities for the 82nd Legislative Session, including balancing the budget without raising taxes, preserving essential services, and strengthening Texas' position as a national economic leader through sound policies. Check out the Governor's entire State of the State address below.
Four Texas metropolitan areas — Houston, Austin, Dallas and San Antonio — dominate the top 15 U.S. cities in a global study to determine the level of cities' recovery from the recession.
The Brookings Institution Metropolitan Policy Program report ranks 150 cities: 50 in the United States, 50 in Europe and 50 in the rest of the world. Austin was the highest-ranked U.S. city and No. 26 in the world. Dallas ranks as the No. 4 U.S. city and No. 39 in the world. San Antonio ranks No. 11 in the U.S. and No. 51 in the world.
Houston is ranked No. 15 in the U.S. and No. 61 in the world, according to the report, Global MetroMonitor, which received assistance from the London School of Economics and Political Science.
San Antonio, Houston and Dallas rose in global rankings during the past two years from their pre-recession rankings. Austin stayed about the same, ranking No. 25 among the 150 metro areas before the recession.
The report found that income and job growth in metro areas exceed those of their nations as a whole, which means large cities are leading the global recovery from the 2007-09 recession.
<em>Where can you go to escape the recession? Try any of these 10 places. Oh, and be prepared to wear red.</em>
Like a massive tornado, the Great Recession up-ended the topography of America. But even as vast parts of the country were laid low, some cities withstood the storm and could emerge even stronger and shinier than before. So, where exactly are these Oz-like destinations along the road to recovery? If you said Kansas, you're not far off. Try Oklahoma. Or Texas. Or Iowa. Not only did the economic twister of the last two years largely spare Tornado Alley, it actually may have helped improve the landscape.
NEWSWEEK has compiled a list of the 10 American cities best situated for the recovery. These are places where the jobs are plentiful, and the pay, given the lower cost of living, buys more than in bigger cities. In other words, places unlike much of the rest of the country. The cities, most of which lie in the red-state territory of America’s heartland, fall into three basic groups. There's the Texaplex—Austin, Dallas, San Antonio, and Houston—which has become the No. 1 destination for job-seeking Americans, thanks to a hearty energy sector and a strong spirit of entrepreneurism. There are the New Silicon Valleys—Raleigh-Durham, N.C.; Salt Lake City; and urban northern Virginia—which offer high-paying high-tech jobs and housing prices well below those in coastal California. And then there are the Heartland Honeys—Oklahoma City, Indianapolis, and Des Moines, Iowa—which are enjoying a revival thanks to rising agricultural prices and a shift toward high-end industrial jobs.
Texas created more than half the jobs in the nation over the last year, according to a report released Thursday.
In the monthly review of the Texas economy for October, Ali Anari and Mark Dotzour of the Real Estate Center at Texas A&M University reported that the state added 166,000 jobs during the year ending in September for an annual growth rate of 1.6 percent.
During the same period, the U.S. economy gained 321,000 jobs, an annual growth rate of 0.2 percent.
The private sector is driving job creation in Texas, Anari said in a statement.
The September state unemployment numbers came out last Friday, and we couldn't help noticing that three of the four states with the highest job losses were California (-63,500), New York (-37,600) and New Jersey (-20,200). The other was Massachusetts (-20,900). Texas, meanwhile, gained 4,000 jobs.
This continues a longer term trend.Over the last year, as the economy was beginning to grow again, the Lone Star State has led the nation with the addition of nearly 153,000 jobs, while California surrendered 43,700, New Jersey lost 42,300 and New York dropped 14,600. This superior jobs recovery builds on the fact that Texas also weathered the national recession better than most states. According to a new Texas Public Policy Foundation study, Texas experienced a decline of 2.3% from its peak employment, while California fell nearly four times further, with 8.7% of jobs vanishing.
These hiring statistics confirm that for business Texas is the new California—as the likes of Austin, Dallas and San Antonio have become destinations for investment and entrepreneurship. Texas has become a mecca for high tech, venture capital, aeronautics, health care and even industrial manufacturing like the building of cars and trucks.
Meanwhile, the Golden State, New York and New Jersey have been slouching toward slow-growth European status. New Jersey is at least working to get its spending and taxes under control with Chris Christie as Governor, though its state and local tax burden remains the nation's highest and its business tax climate is the worst, according to the Tax Foundation.
The migration of factories, capital and jobs to states like Texas is no accident. Texas is a right to work state, meaning that workers cannot be compelled to join a union. Texas also has no income tax, which gives its firms a roughly 10% cost advantage over a "progressive" state like California.
There is also a lesson here for Washington. The job-free zones of California, New Jersey and New York each tax the rich more than nearly all other states. In these states the top 1% wealthiest taxpayers bear roughly 40% of the state income tax burden, but their budgets are still a mess and the job losses continue. If the next crop of Governors and the 112th Congress want faster growth and more job creation, they'll avoid the mistakes of California and New York and learn from Texas.
Just days before Washington state voters decide whether to impose a first-ever state tax on six-figure incomes, Texas Gov. Rick Perry has jumped into the middle of the fray.
With a week to go before the Washington ballot initiative, Perry, a Republican, has taken an unusually aggressive swipe at Gov. Chris Gregoire, a Democrat. Perry sent letters Friday to 90 leading businesses in Washington – including Amazon, Microsoft and Starbucks – inviting them to relocate to Texas, which also has no income tax.
"If Washington doesn't want your business, Texas does,” said Perry. “Texas has no personal income tax and no interest in getting one."
Most Washington business leaders are lined up against the proposal, which would impose a 5 percent tax on individuals earning $200,000 or more a year and a 9% tax on those making more than $500,000.
Microsoft founder Bill Gates, the state’s most prominent billionaire, has divided loyalties: his company is fighting the tax proposal on behalf of its many highly-paid workers, but the ballot initiative was sponsored by Gates father, a retired lawyer who argues that Washington needs the money to fund education. The software mogul himself has not taken a position on the tax, which stands to cost him tens of millions of dollars a year.
The latest poll says the anticipated vote on the income tax initiative is too close to call.
A Perry spokesman denied that the governor was meddling to defeat the Washington initiative, but conceded that the timing – a week before the vote – was no coincidence.
“It seemed like the right time to do it, as businesses are focused on the election and on the possibility of paying higher taxes,” said Ray Sullivan.
Washington and Texas are among seven states that impose no income tax, contributing to the fact that both are highly rated as places to conduct business.
It is common for governors to recruit individual companies to relocate but unusual to make a blanket indictment of the business climate in another state. It is also unusual for governors to try to influence the outcome of ballot initiatives in another state.
Gregoire, who supports the tax proposal, shrugged off Perry’s missives.
“We're serious about keeping businesses here and attracting new ones to the state,” she said in a written statement issue by her office. “We've consistently ranked in the top five in the Forbes list of best states to do business—ahead of Texas."
Gregoire spokesman Cory Curtis said the governor was not offended by Perry’s letters, but would not comment on whether the governor thought that Perry was trying to influence the vote. Asked what kind of relationship the conservative Perry and the liberal Gregoire have, Curtis said, “I don’t think they have any relationship.”
In Forbes’ latest rankings, Washington placed fifth among states with a positive business climate, while Texas ranked seventh. Washington ranked 28th for the lowest business costs, and Texas was slightly better – 26th. Surprisingly, Washington bested Texas for imposing a lighter regulatory burden on business, ranking 5th while Texas ranked 17th.
“We think that Washington will continue to be a better place [than Texas] to do business, whether or not the income tax initiative passes,” said Curtis.
Perry’s spokesman said that Texas was the top-ranked state by business cable network CNBC and CEO magazine, and in most rankings, rated higher than Washington.
Gregoire, like most Washington state politicians, has opposed the imposition of a state income tax, and never pushed it as governor. She has endorsed the ballot initiative, but vowed to veto any effort by the legislature to extend the tax to other taxpayers.