Texas History
Chapter 1 – Political Culture and the People of Texas
Brief Political History of Texas: Texas has operated under seven different constitutions, the first of which was adopted in 1827 when Texas and Coahuila were, combined, a province of Mexico. New constitutions were adopted when Texas became a republic in 1836, and again when it joined the Union in 1845. The remaining four constitutions were adopted during the Civil War era and the period of Reconstruction immediately following, in 1861 when Texas joined the Confederacy, in 1869 when Texas rejoined the Union, and in 1869 to comply with Reconstruction. The current constitution, adopted by a constitutional convention in 1875 and ratified by Texas voters in 1876, was formulated in large part as a rejection of the constitution of 1869, and especially the use of power by the Republican party under that constitution. The problem to the framers of the constitution in 1875 was not a central government that was too weak; it was a central government that was too powerful. As stated in Article I, Section 2 of the 1876 Texas constitution: “All political power is inherent in the people, and all free governments are founded on their authority and instituted for their benefit. The faith of the people of Texas stands pledged to the preservation of a republican form of government, and subject to this limitation only, they have at all times the inalienable right to alter, reform, or abolish their government in such manner as they may think expedient.” There is no doubt that a limited government was the preference, not only in 1876 but today as well. From the time the 1876 constitution was ratified for over 100 years, Texas was dominated by the Democratic party. This began to change with the election of Republican William Clements in 1978 to the office of governor. He was elected again in 1986. The 1990’s saw competition between the Democrats and the Republicans and by the turn of the century, the Republicans captured control of the legislature and most of the state elected officials. Today, the Republicans are
dominant in the suburban and rural areas, but the Democrats are increasing their presence in many of the major Texas cities. Political Culture of Texas:
Learning Objective By the end of this section, you will be able to:
● Describe the political culture of Texas Political culture refers to broadly shared values, beliefs, and attitudes about how the government should function. Shared American values include the values of liberty, equality and democracy and these are central to Texas values. In the book, American Federalism: A View from the States, Daniel Elazar first theorized in 1966 that the United States could be divided into three distinct political cultures: moralistic, individualistic, and traditionalistic. The diffusion of these cultures throughout the United States is attributed to the migratory patterns of immigrants who settled in and spread out across the country from the east to the west coast. These settlers had distinct political and religious values that influenced their beliefs about the proper role of government, the need for citizen involvement in the democratic process, and the role of political parties.
Figure 1.17 Daniel Elazar posited that the United States can be divided geographically into three types of political cultures—individualistic, moralistic, and traditionalistic—which spread with the migratory patterns of immigrants across the country. Image Credit: Texas Government 1.0
(https://www.oercommons.org/courseware/8435) - OER Commons. Moralistic Political Culture In Elazar’s framework, states with a moralistic political culture see the government as a means to better society and promote the general welfare. They expect political officials to be honest in their dealings with others, put the interests of the people they serve above their own, and commit to improving the area they represent. The political process is seen in a positive light and not as a vehicle tainted by corruption. In fact, citizens in moralistic cultures have little patience for corruption and believe that politicians should be motivated by a desire to benefit the community rather than by a need to profit financially from service. Moralistic states thus tend to support an expanded role for government. They are the duty of public officials to advocate for new programs that will benefit marginal citizens or solve public policy problems, even when public pressure to do so is nonexistent.
The moralistic political culture developed among the Puritans in upper New England. After several generations, these settlers moved westward, and their values diffused across the top of the United States to the upper Great Lakes. In the middle of the 1800s, Scandinavians and Northern Europeans joined this group of settlers and reinforced the Puritans’ values. Together, these groups pushed further west through the northern portion of the Midwest and West and then along the West Coast.1 States that identify with this culture value citizen engagement and desire citizen participation in all forms of political affairs. In Elazar’s model, citizens from moralistic states should be more likely to donate their time and/or resources to political campaigns and to vote. This occurs for two main reasons. First, state law is likely to make it easier for residents to register and to vote because mass participation is valued. Second, citizens who hail from moralistic states should be more likely to vote because elections are truly contested. In other words, candidates will be less likely to run unopposed and more likely to face genuine competition from a qualified opponent. According to Elazar, the heightened competition is a function of individuals’ believing that public service is a worthwhile endeavor and an honorable profession. Individualistic Political Culture States that align with Elazar’s individualistic political culture see the government as a mechanism for addressing issues that matter to individual citizens and for pursuing individual goals. People in this culture interact with the government in the same manner they would interact with a marketplace. They expect the government to provide goods and services they see as essential, and the public officials and bureaucrats who provide them expect to be compensated for their efforts. The focus is on meeting individual needs and private goals rather than on serving the best interests of everyone in the community. New policies will be enacted if politicians can use them to garner support from voters or other interested stakeholders, or if there is great demand for these services on the part of individuals. According to Elazar, the individualist political culture originated with settlers from non-Puritan England and Germany. The first settlements were in the mid-Atlantic region of New York, Pennsylvania, and New Jersey and diffused into the middle portion of the United States in a fairly straight line from Ohio to Wyoming. Given their focus on pursuing individual objectives, states with an individualistic mindset will tend to advance tax breaks as a way of trying to boost a state’s economy or as a mechanism for promoting individual initiative and entrepreneurship. Since this theoretical lens assumes that the objective of
politics and the government is to advance individual interests, Elazar argues that individuals are motivated to become engaged in politics only if they have a personal interest in this area or wish to be in charge of the provision of government benefits. They will tend to remain involved if they get enjoyment from their participation or rewards in the form of patronage appointments or financial compensation. As a result of these personal motivations, citizens in individualistic states will tend to be more tolerant of corruption among their political leaders and less likely to see politics as a noble profession in which all citizens should engage. Finally, Elazar argues that in individualistic states, electoral competition does not seek to identify the candidate with the best ideas. Instead it pits against each other political parties that are well organized and compete directly for votes. Voters are loyal to the candidates who hold the same party affiliation they do. As a result, unlike the case in moralistic cultures, voters do not pay much attention to the personalities of the candidates when deciding how to vote and are less tolerant of third-party candidates. Traditionalistic Political Culture Given the prominence of slavery in its formation, a traditionalistic political culture, in Elazar’s argument, sees the government as necessary to maintaining the existing social order, the status quo. Only elites belong in the political enterprise, and as a result, new public policies will be advanced only if they reinforce the beliefs and interests of those in power. Elazar associates traditionalistic political culture with the southern portion of the United States, where it developed in the upper regions of Virginia and Kentucky before spreading to the Deep South and the Southwest. Like the individualistic culture, the traditionalistic culture believes in the importance of the individual. But instead of profiting from corporate ventures, settlers in traditionalistic states tied their economic fortunes to the necessity of slavery on plantations throughout the South. When elected officials do not prioritize public policies that benefit them, those on the social and economic fringes of society can be plagued by poverty and pervasive health problems. For example, although the map below shows that poverty is a problem across the entire United States, the South has the highest incidence. According to the Centers for Disease Control and Prevention, the South also leads the nation in self-reported obesity, closely followed by the Midwest.3 These statistics present challenges for lawmakers not only in the short term but also in the long term because they must prioritize fiscal constraints in the face of a growing demand for services.
Texas Political Culture and Elazar’s Theory Elazar’s Theory claims that Texas is a mixture of traditional and individualistic political cultures. As a result, the voter turnout in Texas is lower than most other American states, with the argument that Texans view political participation as an economic perk versus the value of contributing to society. This is in keeping with the Texas state of mind. Texas is a pro-business state where taxes are kept low. Business leaders play a key role in how the state is run. Hard work is considered a virtue in Texas. However, when thinking about the political culture of Texas, we have to keep in mind that changes take place over time. And, when you consider the size of Texas, it is difficult to place the state in a one-size fits all culture. The people of the Panhandle have very little in common with people of the Rio Grande valley and there are vast differences between the people in the Eastern part of the state versus the Western part of the state. Geography of Texas: Second only to Alaska, Texas occupies about seven percent of the total water and land area of the United States. The total area of Texas includes 261,232 square miles of land and 7,365 square miles of water. It is 801 miles from the northwest corner of the Panhandle to the southern tip of on the Rio Grande river. Traveling from west to east, one would travel 773 miles. The Rio Grande river travels 889 miles from El Paso to the Gulf of Mexico along the border with Mexico and Texas has 367 miles of beaches on the Gulf of Mexico. In Guadalupe Mountains National Park in Culberson County, Guadalupe Peak is the highest point in Texas at 8,749 feet and next to it stands El Capitan at 8,085 feet above sea level. The highest town in Texas is Fort Davis in Jeff Davis County at 5,050 feet. The highest highway is also in Jeff Davis County at the McDonald Observatory at 6, 781 feet and the highest railway is in Presidio County at 5,074 feet. Sea level is the lowest point in Texas and can be found in all of the coastal counties. The Physical Regions of Texas include the Gulf Coastal Plains, the Interior Lowlands, the Great Plains and the Basin & Range Province.
(Place Map Here – Physical Regions of Texas from Texas Almanac)
The Gulf Coastal Plains extend from the southernmost tip of Texas to the Red River in the north bordering Oklahoma and east to the Sabine River, bordering Louisiana. The western boundary is the Balcones Fault and Escarpment, a geologic fault extending from a point on the Rio Grande at the city of Del Rio traveling northeast to Bexar, Comal, Hays, and Travis counties joining the Colorado River in Travis county. Along this line are southward and eastward facing hills. The Spanish word “balcones” means balconies and refers to the resemblance of the hills to balconies. Within the Gulf Coastal Plains are seven sub-regions. The Pine Belt runs along the eastern border of Texas with Louisiana. The area was settled early in Texas history and is the location of the commercial timber industry. An oil field discovery in 1931 has also contributed to the economic development of the area. Bordering the Pine Belt on the west is the Post Oak Belt. Here, the principal industry is farming and livestock raising. Also in this area are the loblolly pines, known as the “Lost Pines” and are the westernmost southern pines in the United States. Just to the west is the Blackland Belt, which stretches from the Rio Grande to the Red River. Originally a farming area and resulting from early growth, this is the most populous area in the state. It has the largest concentration of large and mid-sized cities and the most diversified manufacturing industry. The Coastal Prairies extends all the way from the Sabine River along the coastline to the Rio Grande Valley. From Houston to the east, the development is in petrochemicals and the aerospace industry. From Corpus Christi to the Rio Grande Valley, there are seaports, cattle, farming and industrial sections. The Lower Rio Grande Valley produces much of the citrus and winter vegetables as it rarely freezes. Finally the Rio Grande Plain lies south of San Antonio and covers the area between the Rio Grande River and the Gulf Coast. This area is devoted to raising cattle, sheep and goats.
(Insert picture of Texas Gulf Coast here) The Interior Lowlands are also known as the North Central Plains. They border the Blackland Belt on the east and travel west to the Caprock Escarpment. They are sandwiched between the Red River in the north and the Colorado River on the south. The Western Rolling Plains comprise about two-thirds of this area and rise from about 750 feet on the east to 2,000 feet at the base of the Caprock Escarpment. Some of the state’s largest cattle ranches are found in this area. To the east lies the Grand Prairie with few trees, but many streams. Most of the population is rural except for Forth Worth and has an agricultural economy. The Eastern and Western Cross Timbers surround the Grand Prairie on the north, east and west. They primarily produce fruit and vegetable crops.
(Insert picture of Caprock Escarpment) The Great Plains lie to the east of the base of the Rocky Mountains. The Caprock Escarpment is a physical feature caused by surface erosion that rises abruptly from 200 feet to almost 1,000 feet on the eastern side of the High Plains. Here one will find Palo Duro Canyon on the Prairie dog town Fork of the Red River, Blanco Canyon on the White River and the Canadian Breaks on the Canadian River north of Amarillo. These high plains are divided into the northern and southern plains. The northern plains are major producers of wheat and grain sorghum but also ranching and petrochemical developments. The southern plains also have grain sorghum, but also lead the state in cotton production. The Edwards Plateau lies between the Rio Grande and the Colorado River and rises from 750 feet to about 2,700 feet. It is perfect for cattle goat, and sheep raising. This region is the nation’s leading Angora goat and mohair producing region and a leader in sheep and wool. Along the eastern portion of the Edwards Plateau is an area referred to as the Hill Country. It has several large springs including Barton Springs at Austin, San Marcos Springs at San Marcos and Comal Springs at New Braunfels and provide recreational activities. Located in the Pecos River Valley is the Toyah Basin, a broad flat remnant of an old sea floor. It is thriving now because of local oil fields. The Llano Basin is home to two large and five small lakes. On the Colorado River, the uppermost lake and one of the largest is Buchanan followed by Inks, LBJ, and Marble Falls. Lake Travis, the other largest lake is next followed by Lake Austin and Lady Bird Lake. All of the lakes are known as the Highland Lakes Country and serve as a major recreational area.
(Insert picture of Enchanted Rock) The Basin and Range Province lies in the western part of the state. This is the mountainous region of Texas and geologically interesting. The Guadalupe Mountains enter Texas from New Mexico. This is the home of the highest peak in Texas, Guadalupe Peak at 8,749 feet. Heading west are the Hueco Mountains and then further west are the Franklin Mountains in El Paso. The Davis Mountains are mostly in Jeff Davis County and is home to Mount Livermore at 7,000 feet. This region receives moisture-bearing winds and receives more rainfall so there is more vegetation. As you travel south out of the Davis Mountains, you come to Big Bend country receiving its name because it is bordered by the Rio Grande River on three sides. Mount Emory at 7,825 is the highest peak in the Chisos Mountains. Santa Elena, Mariscal and Boquillas canyons are along the Rio Grande River with elevations between 3,500 and 3,775 feet. This area is also home to Big Bend National Park, a popular tourist destination. The Upper Rio Grande Valley is also known as the El Paso Valley consisting of a strip of irrigated land running along the Rio Grande River for
about 75 miles south and east of El Paso. Some of the oldest missions in the state are located here and cotton is a staple of the region.
(Insert picture of Guadalupe Mountains) Industries That Shaped Texas Politics: The economist, Joseph Schumpeter, coined the phrase “creative destruction” wherein old industries are replaced by new ones. Technological innovations will replace the outdated ones. Certainly, this is the cycle we have seen in Texas. Two centuries ago, Texas was pretty desolate and sparsely populated. Fast forward 200 years and the economy of Texas is large and diverse just like the state itself. The Anglo immigrant population increased in Texas primarily because land was provided to settlers at very low cost but requiring them to inhabit and cultivate the land. After statehood, the first census in 1850 recorded 212,000 residents in Texas (154,034 whites, 58,161 slaves, and 397 freed African Americans). Most of the immigrants came from Tennessee, Virginia and Georgia and they brought with them their expertise in growing cotton. With the invention of better plows, barbwire and the extension of railroads, cotton became the principle crop in Texas and remained so until the 1920’s. Ranching, timber in the east, and corn were also important, but cotton was king. As cotton began declining in the early part of the twentieth century, oil began its rise. Discovery after discovery took place and pipelines and refineries were built. This helped to diversify the economy which had been highly dependent on agriculture. As we will discuss later, the energy sector is still important, as are ranching and agriculture, but other industries have emerged. This is particularly true for technology, particularly computers, aerospace and telecommunications. The federal government has contributed to this growth, particularly the aerospace industry. The NASA space center near Houston was built during the Cold War with the Soviet Union. The central location of Texas in the United States with its urban population has spurred growth in the airline industry. Dell Computer has its headquarters just north of Austin in Round Rock and telecommunications giant AT%T is based out of Dallas along with Texas Instruments. Additionally, Houston has become an important center of medical research with its world renown medical center. And, of course, people travel to Texas to enjoy its miles
of beaches on the Gulf of Mexico or to visit the San Antonio Riverwalk among other, making the state a popular tourist destination. When the economy took a downturn at the end of 2007, Texas was one of the last states to suffer and one of the first to recover. The diversification of the Texas economy certainly contributed to its success along with a strong housing market and a resurgent oil and gas industry. However, it was noted in 2017 that Texas was no longer outperforming many other states. Legislators seemed more focused on transgender bathrooms and abortion issues rather than the pro-business issues that have been the mainstay of Texas ideology. As Texas legislators convene the 87th Legislative session in January of 2021, the budget and the COVID-19 pandemic will have to lead the agenda of the 140 day session. (Insert Video Here – Crossroads of Culture: Rich Heritage of Texas State Parks
produced by the Texas Historical Commission) The People of Texas: Population: In December of 2019, the Texas Demographic Center estimated the population for Texas at 28,702,243 which represents an almost 15 percent increase from the census count of 25,145,565 in April of 2010. For every year since 2006, Texas had added more population than any other state, with most of that growth in the big cities. Texas is the second most populous state in the United States and the second largest state by land size in the country. The population density in 2019 stood at almost 110 residents per square mile of land area, higher than the national population density. However, most of the population live in the major cities such as Houston, San Antonio, Dallas-Fort Worth and Austin. (Insert Table Here from Texas Demographic Center, 2018 Population Estimates) As Table 1 shows, most of the population growth came from the large urban cities. Those top ten cities added over one million in population between 2010 and 2018 which accounted for 32 percent of the population growth in Texas. As the bottom of the table shows, those areas with the greatest population losses are mostly rural and sparsely populated. This is particularly true in the Panhandle, and West and East Texas.
Table 2 shows the top 10 areas with the fastest growth rates and most of them are in the suburban areas. Fulshear is located in Fort Bend County adjacent to Houston had the fastest growth rate growing over 10 times from 2010. Coffee City is located in the Dallas-Fort Worth area grew over 5 times. And the rest of these areas saw at least a 30 percent increase in their populations. The decline is most evident in the rural areas. Race/Ethnicity: According to population estimates from the United States Census released in July of 2019, Whites account for about 41.2 percent, Hispanics 39.7 percent, African Americans 12.9 percent and Asians 5.2 percent of the total population in Texas. The remainder would include Native American or other. During June of 2019, the Texas Tribune reported that Texas gained almost 9 Hispanic residents for every additional white resident during 2018. It is expected that Hispanics will become the largest population group in Texas as early as 2022. Between 2010 and 2018, Hispanics saw an increase of almost 2 million people. By contrast, African Americans saw an increase of 541,760 people, whites saw an increase of 484,211 and Asians saw an increase of 473,193. While the Hispanic community is growing across the state, 47 percent of them live in the state’s 5 biggest counties – Harris, Bexar, Dallas, Tarrant and Travis. Although the numbers are smaller, the rate of growth of the Asian population has seen the largest increase from 2010 at 49 percent. The Hispanic population has grown 20 percent, the Black population 19 percent and the White population 4 percent. Although the number of Blacks continue to grow, their share of the population has remained fairly stable at just over 12 percent. (Insert Video Here – Hispanic Cultures in Texas produced by the Texas Historical
Commission in 2015, 3 minutes) Age/Disability: Almost 13 percent of Texans are over the age of 65 and that number is expected to increase to 20 percent by 2050. Texas Health and Human Services reports that this expected increase will mean an increase in all types of health and services such as health care, home care, personal care and long-term care. On the flip side, almost 26 percent of the population is age 18 or younger which really lowers the median age of Texans. With almost the same percentage, almost 13 percent of all Texans have been identified as having a disability. Texas Health and Human Services defines a disability as people who are limited in one or more of major life activities – hearing, seeing, thinking or memory, walking or moving, taking care of personal
needs (bathing, feeding, dressing) or living independently. Some are born with a disability, others are the result of accidents, injuries or just getting older. Our aging population along with our disabled population present challenges in meeting their needs. Poverty: While the overall poverty rate in Texas is about 15 percent, the number of children living in poverty comprise about 22 percent, the senior poverty rate is about 11 percent, women living in poverty is about 16 percent, and about 9 percent are living in extreme poverty. Approximately 15 percent of Texans are food insecure, 17 percent are uninsured, 27 percent have low wage jobs, and 36 percent of working families are still under 200 percent of the poverty line. All of this means that the need for social welfare programs is high. Table 3 shows the number of Texans receiving assistance from a variety of these programs:
(Insert Table Here – from Spotlight on Poverty) Women: According to the National Women’s Law Center, women in Texas typically make $0.80 for every dollar paid to men, Black women typically make $0.59 cents for every dollar paid to white men, and Hispanic women typically make $0.45 cents for every dollar paid to white men. All of the numbers are lower than the national average. Approximately, 23 percent of women aged 19-64 are uninsured and almost 25 percent of women of reproductive aged 19-54 are uninsured. Just over 23 percent of women in Texas reported not receiving health care at some point in the last 12 months due to cost. Finally, 37 percent of female-headed households in Texas live in poverty and just over 12 percent of women 65 and over live in poverty. The Urban/Rural Phenomena: The geography of Texas has remained the same, but the political geography has changed over time. Earlier in this chapter, it was noted that the Democratic party had significant control over state and local politics from the time the 1876 constitution was ratified until the 1970’s. For a period of time, there was some two-party competition during the 1980’s and early 1990’s. The election of George W. Bush in 1994 marked a decisive shift. No Democrats have won any statewide races since that year. Throughout the 1990’s, except for the Democratic counties along the Texas-Mexico border, voters in the big metropolitan areas – Houston, Dallas-Fort Worth, Austin and San Antonio –
known as the Texas Triangle, voted the same as the outlying counties. This began to change in 2000. George W. Bush received 68 percent of the vote in the non-metro counties with mostly Anglo populations, compared to 60 percent in the metro counties. In 2016, Donald Trump was the first to win Texas while losing the metro vote. It was his 75 percent margin in the non-metro counties that carried him to the win. New evidence suggests that a closer look at the urban/rural politics be examined. Richard Murray and Renee Cross of the Hobby School of Public Affairs at the University of Houston have identified 27 counties in the Texas Triangle – Houston, Austin, San Antonio, and Dallas/Fort Worth. In those 4 regions, the Republican share of the vote dropped from 60 percent in 2020 to below 50 percent in 2016. There are a couple of possible explanations. First is demography. Between 2010 and 2018, almost 3 million people moved to the 4 metro regions, but only 21 percent were whites. The politics of the Republican party has also changed in Texas. Where George W. Bush reached out to the non-white population and supported immigration reform, Donald J. Trump has run on a strong anti-immigrant message which will not set well with the new demographics in Texas. The suburbs of the 1960’s and 1970’s were mostly middle and upper class whites moving to places that were homogenous and like-minded. Today, younger and more diverse people want to be closer to the cities and they bring a different mindset to the changing composition of the suburbs. As United States Republican Senator Ted Cruz remarked, “Historically, the cities have been bright blue and surrounded by bright red doughnuts of Republican suburban voters. What happened in 2018 is that those bright red doughnuts went purple – not blue, but purple.” Texas and its Economy on the National Front: In her 2012 book, As Texas Goes…How the Lone Star State Hijacked the American Agenda, Gail Collins argued that Texas has shaped federal policy and the U.S. economy. In her words, “If you look back over the last 30 years or so, most of the major national agenda one way or another, came out of Texas. The savings and loan crisis began with regulations that were based on Texas regulations. Our education policies are based on the No Child Left Behind law, which (President) George W. Bush based on Texas education policy. The same is true for environment, for energy policy. And all the land wars the country has been involved in for my lifetime have been led by Texas presidents.”
In a 2018 Forbes article titled “6 Reasons Why Texas Trumps All Other U.S. Economies” it explains why Texas was named Best State for Business by CNBC. First, Texas is a manufacturing powerhouse. During 2017, total manufacturing output was $226.16 billion, or about 10 percent of total U.S. manufacturing goods. Second, Texas was the largest exporting state, responsible for almost 20 percent of total U.S. exports. Third, Texas enjoyed the fastest income growth in the U.S. Incomes expanded 6 percent as compared to 4.2 percent for other Americans. Fourth, Texas was a global oil superpower, accounting for more than 40 percent of the national output. Fifth, people want to move to Texas. Looking at the fastest-growing U.S. cities by percent change, Texas had half of the top 10 spots. Finally, Texans want to own their own homes. Housing markets were tight, sales grew and home permits were up. In 2019, Steven John wrote about the booming economy of Texas for Business Insider. He cited 11 facts about the Texas economy:
1. If Texas were an independent nation, it would have the 10th largest GDP on earth.
2. Texas has more miles of roads and rail than any other state. 3. Texas produces more than $13 billion worth of wine each year. 4. Texas is the largest producer of wind power in America. 5. The richest city in Texas has a per-capita income six times higher than
the poorest (Albany, Texas at $162,300). 6. Most Texas exports go south to Mexico. 7. There are about 28 times more businesses operating in Texas than in
Wyoming. 8. Texas accounts for 10 percent of total manufacturing in the U.S. 9. Texas is home to nearly 1 million women-owned businesses. 10. Texas produces almost 40 percent of America’s oil. 11. Texas has enough crude oil reserves to fill more than 1 million
Olympic swimming pools. In June of 2020, the Perryman Group published a report for the Texas Economic Development Council describing the impact of the local-option sales tax for economic development over the past 30 years. The state sales tax is 6.25 percent and local governments can add an additional 2 percent. Of that 2 percent, a portion can be used for economic development. The Perryman Group estimates that this economic development sales tax has generated more than $110.1 billion in annual gross product and almost 1.2 million jobs. Further, 20 percent of the new jobs over the past 30 years have come from efforts funded by this tax. And, the productivity is 33 percent higher than the state average. For every dollar paid by taxpayers toward this tax, yields include $131.84 in output
and $82.42 in income. All of this means that this particular tax for economic development has contributed to the success of Texas. And then came the COVID-19 pandemic causing major shutdowns of businesses and education beginning in March of 2020. It is difficult to predict how this will affect Texas in the long run. Trillions of dollars have been poured into the U.S. economy through fiscal and monetary stimulus and the Federal Reserve has cut interest rates to near zero. This stimulus was intended to help for a 2 to 3 month period and we are now in the 8th month with possible surges predicted for the fall. Still, Texas is opening businesses and schools. When the 87th Texas Legislature convenes in January 2021, those legislators will have their hands full as they prepare the budget for the 2022-2023 biennium.