The Metro 8 Chambers’ CEOs and supporting senior staff held meetings at the State Capitol last week to discuss the Texas business community’s economic development priorities in the 85th legislative session.
The Metro 8 Chambers, representing Arlington, Austin, Corpus Christi, Dallas, El Paso, Fort Worth, Houston, and San Antonio, work with the state and local governments to drive economic development across the entire state. Working with elected officials, Metro 8 identifies state and local incentives needed to secure job creation and business capital investment that is critical to sustaining economic growth. The purpose of this meeting was to advocate for sufficient funding to maintain the Texas Enterprise Fund, protecting the Texas Economic Development Act incentive program in Chapter 313, as well as continued support for other economic development tools that attract new jobs and companies to Texas, including but not limited to the $1 million small-business franchise tax exemption.
Metro 8 CEOs began the day meeting with the Lt. Governor Dan Patrick’s office. Logan Spence, Chief of Staff discussed how the Trump administration’s focus on job creation has shifted the dynamics in the Texas Legislature. While the Lt. Governor is supportive of the Texas Enterprise Fund, the leaner budget this session will make it difficult to determine the size and scope of those funds this biennium.
Spence highlighted education as a top priority this session as well as the Lt. Governor’s support of Senate Bill 2, filed by Republican Sen. Paul Bettencourt of Houston, which would require cities and counties to ask for voter approval for any annual property tax increase of 4 percent or greater. CEOs made clear that SB2 could be detrimental for cities, as it would limit funding for much needed community infrastructure improvements.
The CEOs then met with and discussed Senate Bill 6, known as the Texas Privacy Act, and Chapter 313 with Representative Dennis Bonnen, Chairman of the House Ways and Means Committee. The Metro 8 CEOs stressed the greater need to preserve all economic development tools in Texas since SB6 can deter businesses from relocating to Texas, arguing that the state is already at a competitive disadvantage having the fifth highest ad valorum tax rate in the United States.
The group then met with Governor Abbott to get his perspective on the issues he finds to be top priority this session. Abbott made it clear that he would ensure the state preserves funding for transportation infrastructure as well as funding for the state’s school finance system.
Next the group met with Senator Craig Estes’s office. Estes serves as Chairman of the Natural Resources Committee, which recently published the Senate Committee on Natural Resources and Economic Development Interim Report. Staff briefed CEO’s on the six recommendations within the report, which propose the Legislature reconsider its methodologies for creating and maintaining economic development incentives, including various amendments to Chapter 313.
The group ended the day with meeting with Representative Angie Chen Button, Chair of the Economic and Small Business Development Committee and member on the Ways & Means Committee. Representative Button expressed her strong support for preserving and maintaining funding for the state’s economic development incentive programs. Although the budget is much smaller than last session, she has committed to supporting the Chambers and working with her colleagues to keep our priorities on their radar.
Metro 8 will continue to meet with state legislators during the legislative session. On January 26, Metro 8 will host Dale Craymer, President of the Texas Taxpayer and Research Association (TTARA), at the State Capitol. Craymer will provide an update on Chapter 313 and the Texas Enterprise Fund. The purpose of the event is to inform legislators on how preserving these economic development tools can assist in attracting high-value companies to Texas, creating both indirect and direct jobs.
Collectively, the Metro 8 Chambers serve more than 20,000 Texas companies and employ a large portion of the state’s workforce. The Metro 8 accounts for 70.1% of Texas’ total population and 80% of Texas’ total GDP. Since its creation, the Metro 8 has focused largely on economic development, mobility, and workforce policies that will benefit state and local economies.
