Columns

Calm down! Recent inflation reports have caused alarm and, frankly, overreaction. The overall Consumer Price Index increased again in May, bringing the rate over the last 12 months to 5.0%. It was the largest 12-month increase since a 5.4% rise observed in August 2008, during the midst of the Great Recession. The index for all items less food and energy rose 3.8%, the largest annualized increase since June 1992.

Over 20 years ago, the Texas Legislature passed the Texas Economic Development Act, which allows school districts to offer tax incentives for businesses that invest in their communities. The Act, commonly called "Chapter 313" because of its position in the Texas Tax Code, fundamentally improved the economic development landscape. Chapter 313 has been extended several times but is now set to expire Dec. 31, 2022.

Two years! That’s the Chamber work anniversary I’m celebrating today. It certainly has been full of unexpected twists and turns thanks to COVID. I joke with my coworkers and our board members that I’m a redshirt freshman. Twenty-four months in and there are still annual Chamber and EDC events that I’ve not experienced.

The recent legislative session will not soon be forgotten. The focus was perpetually on anything but initiatives required to move Texas forward. Some high profile measures stalled but will no doubt resurface; others passed.

The Texas Legislature sent a $248 billion two-year state budget to Gov. Greg Abbott after the House approved the measure last Thursday. The 140-day legislative session ended at midnight May 31. Senate Bill 1 is $13.5 billion less than the previous biennial budget, with the difference to be made up from COVID-19 relief funds from the federal government. As previously reported, Abbott plans to allow legislators to decide how to allocate those funds during a special session this fall. Lt. Gov. Dan Patrick has suggested a special session for this summer to address some of his pet bills, such as limiting the participation of transgender athletes in school sports, banning lobbyists paid with public funds and putting limits on social media’s power to restrict users. The Austin American-Statesman reported that Abbott called Patrick's proposal “pretty goofy,” however. Only the governor can call a special session and dictate the topics to be addressed.

With COVID-19 cases continuing to fall and vaccination rates rising, things are beginning to feel a bit more normal. The economy is growing, and the outlook remains positive as the health crisis abates. Here’s a quick look at current conditions and our latest projections for business activity in the state.

Texas recently opted out of federal unemployment compensation related to the COVID-19 pandemic, including the $300 weekly supplement. The reason often given is that there are as many job openings as there are Texans receiving benefits, with the implication being that people will now be more eager to enter the workforce.

Results from the 2020 Census are beginning to surface. These statistics are far more than a matter of interest. Not only is the number of representatives in the U.S. House tied to the count, but also funds from a variety of federal programs. Trends are also crucial to planning and decision-making across a broad spectrum. While the data is still being compiled and it will be a while before we know the full story (and the inevitable lawsuits that are often settled by adding more people), some patterns are emerging.

I am kind of a history nut. My kids thought our TV only had the History Channel. Knowing in many ways history tends to repeat itself, I find myself looking back at what has happened in the past century.

In a few speeches and scribblings of late, I have noted that we appear on the cusp of a new Roaring Twenties, similar to that emerging a century ago in the wake of the Spanish flu (hopefully without any expectation that I will master the Charleston). That modest projection inevitably raises the question: "If we roar like the 1920s, will we then fall through the floor like the Great Depression of the 1930s?" The answer is quite simple – No!!