Texas ED Update: From the Frying Pan Into the Fire

My Texas friends have seen lots of maneuvers over the years to create an effective state capacity for economic development. The truth is that most Texans have such a strong sense of local control, they basically do not believe in state government. The latest news about the Lone Star state once again changing its state ED formula comes as no surprise to most who know Texas politics.

The Texas Senate has approved SB 275, abolishing the Texas Department of Economic Development and its nine-member board. The bill aims to create a streamlined economic development operation in the governor's office. SB 275, introduced by Sen. Jane Nelson, R-Lewisville, now moves to the Texas House for consideration. The bill is designed to save taxpayers an estimated $2.8 million over the biennium, help the state more efficiently, assist companies doing business in Texas and pursue companies interested in relocating to Texas.

This is what I call "jumping from the frying pan into the fire" when it comes to politicizing economic development.

Other states and some cities and counties have moved in this direction, arguing that the Chief Elected Officer should run the show to ensure that things get done. As I reflect on past examples that I can think of, most are short-lived and eventually give way to other models.

My recommendation to Texans is to create a new public-private partnership organization that is jointly funded by both sectors and provides shared leadership for economic development.

I want to know what the Texas ED Council and the Texas Marketing Team have to say about all this.

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