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Business and economic development
July 9, 2009
California v. Texas: Head-to-head in Economist
The Economist magazine has weighed in on the age-old question: Which state is better — California or Texas?
“Thanks to low taxes and light regulation, Texas is booming,” the magazine reports, echoing a point made often by Gov. Rick Perry.
Texas has absorbed the shock of the economic recession while California has been walloped by it.
“It is easy to find evidence that California is in a funk,” citing the state’s crushing deficit, dysfunctional political system and soaring unemployment rate.
“Every year, over 100,000 more Americans leave the state than enter it.”
And it refers to economist Arthur Laffer, who made the same argument in a report issued last year by the Texas Public Policy Foundation.
But the Economist warns Texas not to get too cocky: “That lean Texan model has its problems,” particularly an insufficient investment in education and demographic changes that could overwhelm the state.
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December 16, 2008
Sunset: Don't abolish TRCC
The Sunset Advisory Commission late today voted not to abolish the controversial state agency that polices homebuilders and consumer complaints about shoddy construction, after years of complaints that the agency has become a tool of the industry it is supposed to regulate.
But commission members made it clear they want the Texas Residential Construction Commission to start doing a better job, recommending that complaints be resolved within 105 days and giving the agency more authority to revoke or suspend homebuilders’ licenses.
A staff report made public months ago had recommended the agency be abolished, arguing that it has been ineffective in policing the homebuilding industry amid consumer complaints that it is controlled by builders.
The sunset commission recommendation will now go to the Legislature for debate beginning in January.
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March 28, 2008
Judge strikes down strip club fee
A state district judge today ruled that Texas may not collect a $5-per-customer strip club fee that went into effect in January.
Judge Scott Jenkins wrote in an opinion that the fee, “while furthering laudable goals, violates the First Amendment to the United States Constitution and is therefore invalid.”
The Legislature created the fee last year to pay for sexual assault prevention programs and health insurance for low-income Texans. The Texas Entertainment Association Inc. — a group of adult cabarets — and Karpod Inc., the owner of an Amarillo club, sued the state over the fee.
It’s unclear though whether strip clubs will immediately stop collecting the fee. The state could appeal.
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April 2, 2007
Turner vows rebound on utility discount proposal
Rep. Sylvester Turner’s effort to restore electricity discounts for thousands of low-income Texans was delayed by a point of order in the Texas House on Monday, though Turner said he’ll retool the measure and bring it back soon.
“Not dead by a long shot,” the Houston Democrat said.
Rep. Robert Talton, R-Pasadena, derailed the proposal by invoking a House rule that restricts consideration of legislation diverting state funds until after lawmakers send a budget to the state comptroller and the comptroller certifies it — no earlier than the 119th day of each 140-day regular session.
Turner said he’ll fix the weakness exploited by Talton’s point of order by creating a dedicated account within the state budget.
Turner had proposed establishing a trust fund to corral dollars raised by a fee of about $1 levied on monthly electric bills. Utility discounts for low-income Texans were funded from the collected fees until 2003, when lawmakers shrunk the program. Members cut off the utility discounts entirely in 2005, with the fees’ revenue going to general budgetary purposes.
Turner seeks to bring the discounts back — adding in utility discounts for non-profit nursing homes as well.
Talton said he doesn’t think the fees should be collected at all. He said too that utilities are free to give discounts to customers, as it should be. “If I can vote for smaller government, it’s fine with me,” he said.
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