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Texas Economy Immune to the Meltdown?

By
Real Estate Agent with Century 21 Westbank Summit

Posted on 10/19/2008 7:42:00 PM

If you have spent any length of time watching the news on TV lately, you might just think that the world was coming to an end.  

With all the bad news about the economy that is out there, something came across my desk that I wanted to share with all of my friends and neighbors regarding the TEXAS economy.

 Below is an article published by Strategic Partnerships in Austin that sheds some light on the state of the Texas Economy.

 Enjoy, and CHEER UP!  Things are great in Texas.

 Mike Freeman

 Texas weathers nation's economic storm

State's strong economy means good news for business opportunities for product, service providers 

AUSTIN (10/15/08) - More than half of the states across the nation are facing budget shortfalls, some in the billions of dollars, as an economic downturn settles in nationally and globally. But because Texas has worked to diversify its economy, the Lone Star State's economy remains among the strongest in the country.

 "The diversity of the state's economy is allowing Texas to withstand the current instability seen in the national economy. And that is good news for vendors," said Mary Scott Nabers, president and CEO of Strategic Partnerships, Inc., an Austin-based government relations procurement consulting firm.

 In California, lawmakers are dealing with a budget deficit of more than $22 billion for Fiscal Year 2009, which started in June. In New York State, where spending has outpaced revenue generation, the state is dealing with a $4.9 billion deficit this fiscal year, while Florida lawmakers wrestle with a $3.4 billion deficit. Some states will have to borrow money at higher interest rates than usual, others are looking at massive spending cuts and still more are tapping into reserves such as their Rainy Day Funds to make ends meet.

 These budget deficits are widening and revenues are deteriorating - but not in Texas.

 When the Texas Legislature convenes in January, lawmakers will have a benefit most other states don't have - a budget surplus that is being estimated at up to $10.2 billion and nearly $7 billion in its Rainy Day Fund. That means an abundance of business opportunities for vendors and service providers.

 How has Texas managed to stabilize its economy so that it weathers national financial storms?

  •  The state has low taxes, no income tax, and reasonable regulations, which makes it an attractive place to do business; both CNBC and CEO Magazine ranked Texas the best state in the nation for business in 2008; The Financial Times recently named Texas the number one state economy in the nation;
  • Increasing demands for oil and gas have meant additional revenues for this major oil-producing state;
  • Sales tax revenues remain strong;
  • Texas is a pay-as-you-go state, which mandates a balanced budget and no deficit spending;
  • The state has a $200 million Texas Emerging Technology Fund that invests in companies and universities to help attract high-tech jobs and help start-up companies get off the ground and the state's Texas Enterprise Fund helps recruit and bolster business in the state, resulting in 51,600 new jobs and $13.6 billion in capital investment in the Texas;
  • Texas has created 1.2 million net new jobs in the last five years, with nearly half the jobs created in the United States in the past year created in Texas;
  • The Texas unemployment rate is well below the national rate and while national unemployment rates are turning negative, Texas' employment growth continues, with 252,000 jobs added over the past 12 months.

 "Simply put," said Nabers, "This means that as 2008 winds to a close, Texas - more than any other state - is a prime focus area for business opportunities for vendors."

* * *

About Strategic Partnerships, Inc.:

SPI (www.spartnerships.com) was founded in 1994 in Austin, Texas. Its staff of consultants and researchers collectively boast more than 400+ years of executive level experience in government and have assisted clients in the closing of billions of dollars in government contracts.

Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hello Mike,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to you!

-Keith

Oct 27, 2008 09:22 AM
Sergio Rebollo Jr.
Real Estate TeamMates - Miami, FL

Mike....Welcome to ActiveRain.  This is a great community to network with others as well a great place to learn from other's experiences and knowledge.  I've enjoyed it; I hope you enjoy it as well.  Congrats on your first post.

Oct 27, 2008 01:18 PM
Tinker Hulsey
Century 21 Wright-Pace Real Estate - Jonesboro, AR
Century 21 Wright-Pace Real Estate

Mike

Welcome to ar. Great post. I am also a real estate professional with Century 21. Great company!

Good luck

Tinker

Oct 28, 2008 04:55 AM
Yvette Gardner
Keller Williams Realty, Spartanburg, SC - Spartanburg, SC

Welcome to the Active Rain community. This is a great site with lots of information.  Have fun with it and hope to see more of your blogs soon!  We have a team of four outstanding full time agents to assist your buyers and sellers in Spartanburg/Greenville, SC.  Again, welcome to AR!!

Oct 28, 2008 09:37 AM
Lorena Westervelt
Van West Realty - Greenville, SC
Co-Founder/Co-Owner

Hello, welcome to Active Rain! This seems like a wonderful environment to network as well as learn from others. I hope you enjoy yourself and participate often in the Active Rain environment!

Oct 28, 2008 09:51 AM
Bill Kennedy
Keller Williams Greenville Upstate - Greenville, SC
Homes For Sale Greenville SC

Welcome to Active Rain! This is a great website for building your business, as well as learning from others.  Pat yourself on the back, because you made a GREAT choice in joining the blogosphere!

Write often, and write whatever comes to mind.  Blogs about personal topics and non-real estate items are often the best.  It helps your readers to bond with you, and ends up bringing you a lot of business!

Good luck with your future blogging.  If you'd like more info on points in Active Rain, I wrote a blog about it (click here). Feel free to ask me any questions if you need a hand!

Oct 28, 2008 03:05 PM
Anonymous
Jean Terry Keller Williams Spartanburg, S.C.

Hi and Welcome to Active Rain, a great site to network, share, learn, and have fun. Good Luck.

Oct 28, 2008 04:35 PM
#7
Dan Nord
RE/MAX Results - Omaha, NE

Welcome to Active Rain, you've joined an excellent site to receive free marketing, share ideas, and network.  Have fun and enjoy yourself.  Good luck.

Oct 30, 2008 04:29 AM