Professional Documents
Culture Documents
Growing Texas’ economy is vitally important to the prosperity and quality of life of all in
the state. As Comptroller, I am committed to creating an environment in which a healthy
economy can flourish by assisting communities and businesses in their efforts to create new
jobs and improve the standard of living of all Texans.
Texas in Focus: A Statewide View of Opportunities is the first of these reports. It provides
information on the cross-cutting issues that affect the state as a whole. Decision makers
across Texas will be able to use these reports as a tool to drive growth in their regions.
The Texas economy is on the brink of a new era. How Texans meet these challenges is
important for continued growth. I hope you will find this report helpful in meeting these
challenges.
Sincerely,
Susan Combs
www.window.state.tx.us t P.O. Box 13528 tAustin, T X 78711-3528 t512-463 -4000 t toll free: 1- 800 -531- 5441 t fax: 512-463-4965
Te x a s i n F o c u s : A S t a t e w i d e V i e w o f O p p o r t u n i t i e s
Table of Contents
1 Introduction
5 Demographics
Texas is one of the nation’s fastest-growing states, and it is changing as it grows. The Texas
population is aging, more ethnically diverse and increasingly urban.
11 Infrastructure
Texas’ economic prosperity depends upon clean water and air, adequate supplies of affordable
energy and an efficient, dependable transportation network. Ensuring the continued availability
of these resources will be an ongoing challenge in the 21st century.
35 Health Care
Texas, like the nation as a whole, faces a number of challenges related to health care, including
access to health insurance, health care work force shortages and the skyrocketing cost of treating
chronic diseases.
45 Education
Education is likely to be the single most important factor determining how tomorrow’s Texans
will fare in an increasingly technical, knowledge-based economy. Texas has been a national
leader in improving public education, but continued efforts are needed to ensure that all Texans
can obtain the education and training they need to succeed.
65 Economic Development
Texas communities must compete not only with each other but also with areas throughout
the nation to attract business investment and jobs. Governments can employ a variety of
economic development tools to pursue these benefits.
75 Conclusion
77 Endnotes
ii
Introduction
factors affecting the state’s economy and to the state. The following are brief previews of
use this information in the biennial forecast the cross-cutting issues that will be discussed
of state revenue. For this reason, it is vitally in this report.
important to keep our fingers on the pulse of
the state, to detect changes as they occur and Demographics
to identify trends that will affect the future. A growing economy needs a growing
Texas in Focus: A Statewide View of Oppor- population, and Texas has it! But we are
tunities is the first in a series of reports that not only growing, we’re changing in many
will be released by this office over the next other ways as well. The demographic data are
few years. This volume takes a look at cross- compelling: Texas is becoming older, more
cutting issues affecting the state as a whole. diverse and more urban.
In the 12 volumes to follow – one for each
of the Comptroller’s economic regions – we Infrastructure
will explore these issues in more detail at the Infrastructure plays a huge role in deter-
regional level. mining economic viability. Critical challeng-
The purpose of these reports is twofold. es in water, energy and transportation face us
First, it is a way to share information on the as we not only try to maintain our current
forces that are driving change in Texas and to infrastructure but to expand it to meet our
present factors that may pose challenges to growing needs.
the state as a whole, affecting the economy.
Second, decision makers across Texas – Health Care
state, county and city officials, chambers of Health care is one of the fastest-growing
commerce, economic development corpora- sectors of the Texas economy. Rising health
tions and many others who work tirelessly to care costs, however, are among the largest
drive growth in their regions can use these obstacles confronting many Texas businesses.
reports as a tool. They can use this informa- A viable and effective health care system that
tion to stay on top of the important issues provides affordable care and greater access
facing the state. It can give them an edge as to Texans will be “healthy” for the Texas
they continue working to keep their local economy as well.
economies thriving, providing greater op-
portunities and a better quality of life for the Education
people of Texas with each passing year. Texas’ most vital resource is the talent and
The continued success of the Texas ingenuity of its people. There’s no limit to
economy depends on how our business and what we can achieve if we have the educa-
community leaders tackle the challenges that tion and skills needed to compete in today’s
confront us and capitalize on the opportuni- global economy. Starting early in life, our
ties we have. Many of these challenges facing children must receive a good education and
Texas are not exclusive to any one region; the ability to perform the jobs that will drive
these are issues that affect all regions across the economy in the future.
2
Demographics
Demographic Shifts
The continuing shift of Texas’ population
from rural to urban areas presents challenges
and opportunities for both areas. In urban
areas, while a rising population has spurred Exhibit 4
tremendous economic growth and diver-
Texas Household Income, 2005
sification, it has also prompted a need for
new and expensive roads, more construction Household Number of Percent
Incomes Households (1,000) of Total
and expanded water and sewer systems. The
Less than $25,000 2,369 29.7%
expansion of urban areas affects agricultural
$25,000 to $49,999 2,198 27.6%
production by increasing the cost of land
$50,000 to $74,999 1,412 17.7%
and disrupting transportation routes. And
$75,000 to $99,000 832 10.4%
city governments can be hit by shrinking
$100,000 to $149,999 725 9.1%
tax bases as people, businesses and industry
$150,000 to $199,999 226 2.8%
move to suburban areas.9
$200,000 and over 216 2.7%
As people move into metropolitan areas
and away from rural areas, problems result Total 7,978 100.0%
Source: U.S. Census Bureau.
7
Exhibit 6
Exhibit 7
Percent Change in Population, 2000-2005
million to 35.8 million.11 The 2040 pro- By 2020, the Texas Hispanic population is
jected population of 35.8 million is a 151 expected to outnumber the White popula-
percent increase from the 1980 population tion (Exhibit 8). Between 2000 and 2040
of 14.2 million.12 the Hispanic population will triple in Texas’
By 2040, the Texas state demographer urban areas, from 5.9 million to 17.2 mil-
projects that the share of the population lion. In rural areas, the Hispanic population
aged 65 or older in Texas will nearly double, is expected to double, from 777,000 to 1.6
to 18.0 percent.13 Nationally, the U.S. Cen- million.15
sus Bureau projects that Americans aged 65 In 1980, the Hispanic population of Texas
or older will comprise 20.4 percent of the was just under 3 million.16 By 2040, there
population.14 will be 18.8 million Hispanics in Texas.17
9
10
Infrastructure
11
Exhibit 9
Average Annual Texas Precipitation, 1971-2000
In inches
<15
15
15 20
20
20
Texas. Not all aquifers contain fresh water. most recent data available), Texas consumed
Most contain at least some saline water; the 15.5 million acre-feet of both ground and
water in many contains minerals, salts or surface water.19 The Texas Water Develop-
naturally occurring radiation in excess of ment Board (TWDB) has projected that
drinking water standards.18 Uses for these this demand could rise to 21.6 million acre-
waters are limited without treatment. feet by 2060.20 An acre-foot is the amount
Agricultural producers, urban, suburban of water needed to cover an acre of land to a
and rural communities, industries and rec- depth of one foot, or 325,851 gallons, about
reational interests all require water. Careful the average annual use of two families.
long-term planning and conservation is nec- Texas has three state agencies with juris-
essary to provide a limited supply of water diction over water issues. TWDB is respon-
12 to an increasing population. In 2004 (the sible for planning and funding projects
Exhibit 10
Major River Basins of Texas
Legend
gend
1. Canadian
Cannadian 13. Brazos-Colorado
2. Redd 14. Colorado
3. Sulphur
Sullphur 15. Colorado-Lavaca
4. Cypress
Cyppress 16. Lavaca
5. Sabine
Sabbine 17. Lavaca-Guadalupe
6. Neches
Necches 18. Guadalupe
7. Nec
Neches-Trinity
ches-Trinity 19. San Antonio
8. Trinity
Trin
nity 20. San Antonio-Nueces
9. Trinity-San
Trin
nity-San Jacinto 21. Nueces
10. Sann Jacinto 22. Nueces-Rio Grande
11. Sann Jacinto-Brazos 23. Rio Grande
12. Brazos
Source: Texas Water Development Board.
in arid far West Texas, with 10 inches or less Grande Compact Commission, with Texas,
of precipitation annually. New Mexico and Colorado representatives,
manages water sharing among the states.
Surface Water Once the Rio Grande becomes an interna-
Texas’ 191,000 miles of rivers and streams tional boundary with Mexico, an interna-
provide about 40 percent of the total water tional treaty and commission governs water
used in the state or 15.5 million acre-feet in sharing by the two countries.
2004.22 Texas has 23 surface water basins; 15 These rivers flow into estuaries, bays and
are major river basins and eight are coastal eventually the Gulf of Mexico. The inflow
river basins that lie between two river estuar- of fresh water from these rivers mixes with
ies on the Gulf (Exhibit 10). the saline gulf waters, creating rich, diverse
Texas has one advantage over other states in aquacultures supporting economically
that 11 of its 15 major rivers begin and end important populations of fish, shrimp and
within the state’s boundaries, greatly simplify- oysters. Many of these creatures can spawn
ing river management. The Canadian River and hatch only in these semi-saline waters,
in the Panhandle, the Red River in the North, later migrating out to the deep gulf to grow
the Pecos River in West Texas and the Sabine to adulthood.
River in the East are shared with neighboring According to the National Wildlife Federa-
states and governed by interstate agreements tion, “95 percent of the Gulf ’s recreationally
and commissions. The Rio Grande is both an and commercially important fish and other
interstate and an international river. The Rio marine species rely on estuaries during some
part of their life cycle.”23 TPWD estimated
Exhibit 11 that the 2006 shrimp catch was valued at
Texas Surface Water Use, 2004 nearly $87 million.24 Texas bays also contrib-
ute to the state’s tourism industry and in all
Steam-electric Livestock generate more than $2.5 billion in economic
1.9% 3.1%
activity each year.25
Municipal In 2004, Texans consumed 6.3 million
Irrigation 38.4% acre-feet of surface water. Exhibit 11 identi-
30.4%
fies the use of this water by sector.
Groundwater
While Texas’ rivers provide water for hu-
man, animal and industrial uses, groundwater
supports irrigated agriculture and is increas-
ingly important for human consumption.
Since the 1970s, according to TWDB data,
Mining
5.2% Manufacturing groundwater consistently has accounted for
21.0% more than half of all Texas water use.26
14 Sources: Texas Water Development Board and Texas Comptroller of Public Accounts.
Groundwater exists in underground for- of eight states, including much of the Texas
mations called aquifers. Texas has nine major Panhandle. Rainfall is limited in the area,
aquifers and 21 minor ones (Exhibit 12). and large areas of the surface are covered
Aquifers depend entirely on rainfall for re- by a layer of nearly impermeable caliche,
plenishment. In the arid West and semi-arid preventing much of the area’s rainfall from
Western-Central area of Texas, replenish- percolating through the caliche into the
ment rates are not keeping up with pump- aquifer.27 Even so, use of Ogallala water is
ing. The problem is particularly acute in the substantial; in 2000, for example, about 65
Ogallala aquifer, which lies beneath portions percent of the estimated 10 million acre-feet
Exhibit 12
Major
j Texas Aquifers
q
Legend
Pecos Valley
Seymour
Gulf Coast
Carrizo - Wilcox (outcrop)
Carrizo - Wilcox (subcrop)
Hueco - Mesilla Bolson
Ogallala
Edwards - Trinity Plateau (outcrop)
Edwards - Trinity Plateau (subcrop)
Edwards BFZ (outcrop)
Edwards BFZ (subcrop)
Trinity (outcrop)
Trinity (subcrop)
Note: Outcrop – portion of water-bearing rock unit exposed at the land surface.
Subcrop – portion of water-bearing rock unit existing below other rock units.
Source: Texas Water Development Board. 15
of groundwater used in Texas came from — is owned by the state. TCEQ issues permits
this aquifer.28 to applicants on a “first-in-time, first-in-right”
In 2004, groundwater supplied 59 percent, basis. A permit does not guarantee that water
or 9.2 million acre-feet, of Texas’ water. 29 Of will be available; it only means that the permit
that amount, almost 80 percent was used for holder is in line to use it. Owners of the most
agricultural irrigation. Texas cities relied on senior rights — that is, the oldest permits —
groundwater for 36 percent of their water can take whatever water is available up to the
supplies, accounting for 15 percent of total limit specified in the permit. The remaining
groundwater use (Exhibit 13).The remaining water is apportioned in sequence to the hold-
5 percent of groundwater use was for manu- ers of junior rights. When drought conditions
facturing, mining (generally in the oilfield), reduce the amount of available surface water,
livestock and steam for electricity generation. generally only senior rights can be exercised.
TWDB projects that the amount of ground- To acquire a water permit an applicant must
water that can be used under current permits prove that water is available, that the use is
with existing pumping facilities will decrease consistent with state law and, occasionally, that
by almost a third in the next 50 years.30 a defined amount of water has been obtained
consistently from a known source, even if that
Availability use pre-dates the permit system. In fact, of the
Texas’ surface water — all the water in its almost 10,000 permits active today, 98 date
streams, rivers and lakes, with some exceptions back to the 18th and 19th centuries.31
Texas has an international treaty with Mex-
ico regarding the Rio Grande’s water. Because
Exhibit 13 the international border lies in the middle
Texas Groundwater Use, 2004 of the river, a 1944 agreement controls how
its water should be divided between Mexico
Steam-electric and Texas. During the past 15 years, however,
1.2% many disputes have arisen over the quantity
Livestock and timing of water transfers.32
Irrigation 1.1% In September 2005, Texas and Mexico
79.3% settled some elements of a long-standing
Municipal dispute over water use in the Amistad and
15.4% Falcon reservoirs on the Rio Grande, with
Mexico repaying 1.5 million acre-feet of
water it owed Texas citizens. Although the
Manufacturing legal aspects of the treaty dispute between
2.4% the countries are settled, some Rio Grande
Valley farmers and irrigation districts are
Mining
0.7% pursuing damage claims in international
16 Sources: Texas Water Development Board and Texas Comptroller of Public Accounts.
courts, alleging that Mexico’s withholding of some of which cover single counties and
water caused them economic harm.33 others multiple counties, were created
Access to Texas groundwater belongs to the under state laws and are governed by locally
owners of the land above it. Under the legal elected board members. GCDs may develop
“rule of capture,” landowners are entitled to well-spacing rules, pumping permits, fees
pump as much groundwater as they can, as and overall pumping limits within their
long as the use is not malicious or wasteful, districts. Under Texas law, GCD enforce-
even if pumping it deprives other landown- ment of its rules is one of only two ways to
ers of water. Once pumped, groundwater limit groundwater pumping in an area; the
may be used or sold as private property. other is a judgment in Texas courts, although
The state’s 89 groundwater conservation the Edwards Aquifer Authority can restrict
districts (GCDs, or occasionally GWCDs), pumping within its statutory boundaries.
Exhibit 14
g
Groundwater Management Areas in Texas
2 6
8 11
5
3
7 12
4
14
9
10 15
13
16
Separate from but overlying the GCDs are mented is dredging reservoirs to increase
the state’s 16 groundwater management areas their capacity. However, the cost of dredg-
(GMAs) that generally encompass entire ing is roughly twice that of building a new
aquifers (Exhibit 14). The GMAs exist to reservoir.37
bring the GCDs within them together to A new source of Texas water is desalination.
determine the region’s anticipated groundwa- Desalination is a promising albeit expensive
ter use, supplies and demands. TWDB then strategy to reclaim fresh water from brackish
uses these estimates to aid in planning for or salt water. “Desal” technology is relatively
Texas’ future water resources.34 straightforward. The most common is reverse
Texans are employing several strategies to osmosis, or RO. Source water is pumped
extend existing fresh water supplies. The first under extremely high pressure through a
and, in some ways, easiest strategy is simply series of membranes resembling thick rolls
to reduce consumption through conserva- of wax paper. The membranes are capable of
tion. Farmers in the High Plains have greatly capturing salt molecules, viruses, bacteria and
reduced their groundwater consumption other microscopic organisms and molecules.
in the past 40 years by employing efficient Because the water is so highly pressured, RO
drip irrigation systems; reducing evaporation plants consume large amounts of energy and
losses by piping instead of trenching; and thus are vulnerable to rising energy costs. The
weaning themselves off irrigation altogether residual waste is generally highly toxic because
through dryland farming.35 Although these of its high salt content. Injection wells usually
techniques have conserved water, the equip- are used to dispose of the residue deep under-
ment involved generally is expensive, and less ground, where it cannot migrate into other wa-
water may increase the risk of crop failure. ter sources. Desal plants near coastal areas often
Many if not most urban water utilities have pipe the residue far out into coastal waters.
conservation programs designed to reduce The potential for brackish groundwater as a
home usage via low-flow shower heads, low- future resource has received renewed attention
volume toilets, xeriscaping (using low-water in efforts to plan for meeting future water
landscape plants), rain harvesting and drought needs. An estimated 2.7 billion acre-feet of
restrictions. Industrial users are encouraged to brackish groundwater is available in the state,
reuse water, often by using “gray water” (that and with RO costs coming down, efforts to
is, once-used water, such as water with non- access that water have gained importance in
hazardous contaminants like soap or food recent years. The Legislature appropriated
particles) when drinking water is not required, state funding in 2005 to support desalination
such as watering golf courses.36 demonstration projects.38
Other strategies include using groundwater In August 2007, the city of El Paso opened
and surface water together when appropriate, a large desalination plant capable of sup-
and removing water-loving plants and brush plying the city and the nearby U.S. Army
such as juniper and mesquite. One strategy installation at Fort Bliss with 27.5 million
suggested by planners but not widely imple- gallons of drinking water daily (or 30,800
18
acre-feet per year), about 30.8 percent of its standards; and requires permits for the dis-
2006 daily usage.39 The water comes from charge of pollutants into navigable waters.42
the mostly brackish Hueco Bolson aquifer in Under the terms of the act, states must
West Texas, and is desalinated by RO. The establish standards for how their water bod-
cost of the resulting water is expected to be ies are to be used. The Texas Surface Water
$1.65 per 1,000 gallons, which compares Quality Standards define water use as aquatic
with current retail rates of a minimum $1.68 life use, contact recreation, public water sup-
per 1,000 gallons in El Paso, $0.93 in Aus- ply and fish consumption. About 46 percent
tin, $1.41 in Dallas and $3.23 in Houston.40 of Texas’ water bodies were not in compli-
ance with the state’s water quality standards
Distribution in 2000.43 Non-compliance requires state
Water used for human consumption in and local officials to determine the reasons
municipalities, whether taken from surface for and sources of pollution and develop a
or underground sources, is piped to water plan to correct the situation.
treatment plants. These plants filter and
chemically treat the water to bring it to Sustainability
drinking water standards. From the treat- TWDB estimates the Texas population will
ment plants, the water is then pumped rise from 21 million in 2000 to 46 million by
through water delivery pipes to the end 2060.44 TWDB expects demand for water to
users. Treatment and distribution is an increase by 27 percent, from 17 million acre-
energy-intensive process — up to 80 per- feet in 2000 to 21.6 million acre-feet in 2060.
cent of treatment costs are due to electricity At the same time, the amount of water that
consumption.41 can be stored in the state’s existing reservoirs is
Treated drinking water is distributed by expected to decrease by 18 percent, from 17.9
various entities including municipal water million to 14.6 million acre-feet, because of
services, in most urban areas; “municipal utility increased sediment in the reservoirs.45
districts” (MUDs), authorized by TCEQ at the Rivers and streams are not limitless resources,
request of property owners (usually in subur- and their contribution of freshwater to coastal
ban subdivisions); and by private water supply estuaries and bays is critical to maintaining
companies. Federal laws including the Clean the health of these uniquely valuable ecosys-
Water Act and the Safe Drinking Water Act set tems. Even before they reach the coast, rivers
water quality standards for such water systems. themselves need to contain certain volumes of
In Texas, TCEQ enforces these standards. flowing water to be able to support fish and
wildlife and the surrounding environment.
Quality The 2007 Legislature passed House Bill 3
The Federal Water Pollution Control Act of to determine how much instream water and
1972, better known as the Clean Water Act, coastal inflows, or “environmental flows,” are
authorizes water quality programs; imposes necessary to maintain viable river and bay
federal effluent limits and state water quality systems. State leaders will appoint groups of
19
stakeholders for each river and bay system. ond produced under the S.B. 1 planning pro-
These groups will work with scientists and cess. Water projects and the financing needs
experts to develop recommendations that will of approved plans are eligible for state funding
ensure the ecological soundness of the water if and when such funds become available.
DID YOU KNOW? systems. Their recommendations will be sub- TWDB’s 2007 Water Plan identifies 4,500
mitted to TCEQ by September 1, 2009.46 water management strategies that could add
Texas is the number
Aquifers can be depleted if pumping 9 million acre-feet per year to the Texas wa-
one producer of
exceeds recharge, a situation now occurring ter supply. TWDB estimates that the capital
wind energy, natural
gas, crude oil, and in several aquifers in the state. GCDs have costs of these projects — which include
electricity in the U.S. limited powers to remedy these situations. building new reservoirs, an expensive and
controversial proposition, as well as desali-
Water Planning nation plants, conservation measures and
In 1997, Texas embarked on a new ap- increased transfers between river basins —
proach to water planning with the passage could cost $30.7 billion in current dollars.48
of Senate Bill (SB) 1, which divided author- TWDB also estimates that the cost of
ity for water planning among 16 regional not implementing these strategies, assum-
water planning groups (RWPGs), with their ing widespread drought conditions, would
boundaries drawn to reflect major basins and be about $9.1 billion in current dollars in
communities of interest. Each group com- 2010 and $98.4 billion in 2060. Without
prises representatives of every major water planning for expected population increases
interest, including local governments, indus- now, a drought in 2060 could mean that 85
tries, agriculture, small businesses, environ- percent of Texans would not have enough
mental organizations, electric utilities, river water to sustain their current levels of use.49
authorities, water districts and the public. Whether that level is necessary — and sus-
Each RWPG is responsible for measuring tainable — is a question for all Texans.
its current water use and projecting popula-
tion changes and future water use; assessing Energy
water supplies; identifying the location and Like water, affordable and readily avail-
amount of water surpluses and demands; able energy is vital to Texas and the Texas
evaluating water management strategies; economy. In 2006, the Texas energy industry
receiving public input; and creating a plan to employed more than 375,000 people, who
meet future needs. RWPGs may also submit earned $35 billion in wages.50
recommendations for any changes in regula- Energy is used in the form of transporta-
tions, administration or statutes needed to tion fuels, both for personal transport and to
ensure that the plan succeeds.47 move goods and provide services to consum-
RWPGs must submit their plans to TWDB ers. And energy in the form of natural gas,
once every five years. TWDB then compiles propane and oil can be delivered directly to
the regional plans into a single State Water individual houses and businesses and burned
Plan. The 2007 version of this plan is the sec- to heat homes and cook food. Energy in the
20
form of electricity is used for residential and Texas is the nation’s largest producer of
commercial heating, cooling and lighting biodiesel. Its current production capacity
and to power appliances and equipment; in is more than 200 million gallons annually,
manufacturing; and for industrial applica- with another 87 million gallons in annual
tions such as petroleum refining and chemi- capacity under construction. In addition, DID YOU KNOW?
cal production. Texas has four ethanol refineries under con-
Texas consumers spent
struction and slated for operation within the
over $95 billion on
Energy Production next year. energy in 2004.
Texas produces more energy than any other
state in the nation. It leads all states in crude Energy Consumption
oil and natural gas production, accounting Texas is also the leading consumer of
for 23 percent and 28 percent of total U.S. energy in the nation, consuming 12 percent
capacity, respectively. Texas has 25 oil refiner- of the nation’s total energy or 11,971 trillion
ies that have a refining capacity of 4.7 million British thermal units (Btus) of energy each
barrels of oil per day, approximately one year (Exhibit 15).57 California was a distant
quarter of all U.S. refining capacity.51 second, using 8,364.6 trillion Btus.58
Texas also is home to more than a fourth Texas’ industrial sector accounts for nearly
of all U.S. natural gas reserves and nearly a 20 percent of all U.S. industrial consump-
quarter of the nation’s crude oil.52 Texas also tion and 53 percent of the state’s total energy
has significant coal deposits coming from 13 consumption. The U.S. industry sector, by
surface mines, including five mines among contrast, accounts for just 33 percent of the
the 50 largest mines in the nation.53 total U.S. energy consumption (Exhibit 16).
Texas produces a significant amount of Texas consumes energy from a wide variety
energy through nuclear power. Texas’ two of sources, including petroleum, natural gas,
nuclear power plants accounted for 5.2 coal, nuclear power and renewable sources
percent of total U.S. nuclear power genera- such as biomass, hydroelectric, geothermal,
tion. Texas ranks fifth in total nuclear power
generation behind Illinois, Pennsylvania,
South Carolina and New York.54 In addition, Exhibit 15
Texas has 24 dams that can produce 672 Total Energy Consumption by Sector, Texas vs. U.S., 2004
megawatts (MW) of hydroelectric power. In trillion Btus
The state also leads the nation in wind Texas Share
energy potential and production, accounting Sector Texas U.S. of Total U.S.
Consumption
for 27 percent of the nation’s total installed
Residential 1,555 21,243 7.3%
wind energy capacity.55 In September 2006,
Commercial 1,315 17,721 7.4%
Texas had a total installed wind capacity of
Industrial 6,400 33,415 19.2%
3,511 MW; West Texas accounted for the
Transportation 2,701 27,900 9.7%
majority of installed capacity in the state,
Total 11,971 100,279 11.9%
with some in the Panhandle.56 Source: Energy Information Administration.
21
wind and solar. In 2004, Texas consumed 95 Federal and State Regulations
percent of its energy from petroleum, natural While federal and state regulations and envi-
gas and coal (Exhibit 17). ronmental standards are intended to ensure that
we have clean air, they can also have a profound
impact on the availability and cost of energy.
These regulations and standards can affect
Exhibit 16
energy production by regulating and limiting
U.S. Energy Consumption by Sector, 2004 discharges from power plants, refineries, mines,
wells and other energy enterprises into the air.
In 1970, Congress passed the Clean Air
Act (CAA), which authorized the U.S.
Residential
Transportation 21.2% Environmental Protection Agency (EPA)
27.8% to establish National Ambient Air Quality
Standards (NAAQS). The goal of the 1970
CAA was to set and achieve NAAQS in
every state by 1975. The setting of standards
was coupled with a requirement that states
develop implementation plans to guide and
direct their efforts to reduce pollution levels.
The CAA was amended in 1977, to set new
Commercial
Industrial 17.7% dates for attainment of air standards, since
33.3% many areas of the country had failed to meet
the deadlines. The CAA was again amended
in 1990 to meet problems including acid rain,
Texas Energy Consumption by Sector, 2004
ground-level ozone, stratospheric ozone deple-
Transportation tion, and air toxics.59 NAAQS, as amended,
22.6% measures six outdoor air pollutants:
Residential
13.0% • ground-level ozone/smog (O3)
• particulate matter (PM)
• lead (Pb)
• nitrogen dioxide (NO2)
• carbon monoxide (CO) and
• sulfur dioxide (SO2).60
Exhibit 18
Texas’ Nonattainment and Near Nonattainment Areas
Under the Clean Air Act
Dallas-Fort Worth
8-Hour Ozone North East Texas
Nonattainment Area Early Action
Compact Area
El Paso
Nonattainment Area
for Particulate Matter 10
and Carbon Monoxide
wires remains regulated by the Public Utility demand is met will be determined by market
Commission of Texas in all areas of the state. forces and federal and state policies. The cost
The three most common fuel sources for of natural gas and policies aimed at reduc-
electricity in Texas and the U.S. as a whole ing pollution may mean that Texas will need
are natural gas, coal and nuclear power (Ex- to turn to alternative fuel sources as well as
hibit 20). conservation and efficiency to help meet the
growing demand for energy. The state, how-
Projected Demand for Electricity ever, has access to enough coal and natural
Texas’ growing population will boost de- gas to meet its projected electricity demands
24 mand for electricity in all sectors. How this through 2030 and beyond.
and its proximity to Mexico and the Gulf of eled in a one-way direction regardless of the
Mexico, Texas transportation affects the entire number of lanes) of road and carried about 74
nation’s economy and quality of life. U.S. trade percent of the state’s vehicular traffic. Includ-
with other countries, both import and export, ed are 28,357 miles of U.S. and state high-
relies on the Texas transportation system. Ac- ways, carrying 36 percent of traffic (including DID YOU KNOW?
cording to the U.S. Bureau of Transportation 22 centerline miles of toll roads); 40,996
Texas motor fuels tax
Statistics, Texas has seven of the top 50 water miles of farm-to-market roads, carrying 11
totaled $3.1 billion,
ports (in terms of total tonnage) in the U.S., percent of traffic; 9,953 miles of interstate about 8.3 percent of
and more products and goods are shipped in highways and frontage roads, carrying 26 tax collections (and the
and out of Texas than any other state.72 percent of traffic; and 339 miles of parks and fourth-highest tax in
Over the past century, Texas has created a recreation roads, carrying less than 1 percent revenues) in fiscal 2007.
transportation system with few rivals.73 Ac- of traffic. An additional 65 centerline miles of
cording to the Texas Almanac, Texas leads the toll roads are under construction.76
states in total road and street mileage (300,000 In fiscal 2004, Texas also had about 143,578
miles), total railroad mileage (more than centerline miles of county roads and 78,990
10,000 miles) and total airports and airstrips centerline miles of city streets that are not con-
(about 1,800).74 Texas has 49,829 bridges; sidered part of the state highway system.77
423 miles of intracoastal waterways along the Highways are also used to transport goods.
entire length of its coast; and 28 ports.75 Trucks move more freight to, from and
Future growth in Texas’ population will within the state than any other mode of
bring challenges for the transportation transportation. In 2002, almost 1 billion
system, forcing the state to increase capacity, tons of freight, valued at $866 billion, were
repair deteriorating infrastructure facilities, moved by truck in Texas, or about 46 per-
decrease or at least control traffic congestion cent of all freight moved in Texas that year.
and address safety issues — while also meet- This percentage is expected to increase to 52
ing state and federal air pollution standards. percent by 2035, with an anticipated 2.3 bil-
lion tons valued at nearly $3.2 trillion.78
Roadways
The Texas Department of Transportation Funding
(TxDOT) is responsible for the mainte- Texas funds its transportation system
nance and enhancement of the state highway primarily through federal transportation aid,
system and allocating state and federal money state and federal motor fuels taxes (20 cents
to local areas to assist them with the con- per gallon and 18.4 cents per gallon, respec-
struction and maintenance of local roads and tively), motor vehicle registration fees, bond
streets. In addition to these funds, commu- proceeds and toll road revenues. These taxes
nities also fund road projects through local and fees amounted to nearly $7.7 billion in
taxes and bond packages. fiscal 2007.
In 2007, the state highway system consisted For the 2006-07 biennium, the Legislature
of about 79,645 centerline miles (miles trav- appropriated $15.2 billion to TxDOT to
27
build and ensure safe and efficient roadways. TxDOT either completes the work or contracts
This amount represented a 24 percent or it out to a private construction firm.
$2.9 billion funding increase over the total In fiscal 2007, the TMF contained $2.3
for the 2004-05 biennium (Exhibit 23).79 billion that can be used to support bonds is-
describes TxDOT various funding sources. sued to fund transportation projects. Exhibit
In addition to these funds, TxDOT also can 24 provides a breakdown of the funding in
use construction funds from the Texas Mobility the Texas Mobility Fund.
Fund (TMF). The TMF is composed of money
collected primarily from drivers with traffic vio- Road Capacity
lations; bonds are issued on the balance of the In fiscal 2006, Texans owned 20.1 million
TMF by the state. These revenues are then al- registered vehicles, second only to Califor-
located to local transportation planning boards nia.80 In the same year, the state had about
for improvements to the state highway system 17.7 million citizens of driving age (16 years
only. Once local transportation planning or older), equating to an average of 1.1 regis-
boards have decided on a project or improve- tered vehicles per citizen of driving age.81
ment on the state highway system in their area, Over the last 25 years, Texas’ population
increased by 57 percent and road use grew
by 95 percent, but the state’s road capacity
Exhibit 23 grew by just 8 percent. TxDOT estimates
that the state’s population will increase by
State Highway Fund, Fiscal 2007
In millions another 64 percent over the next 25 years;
road use will grow by 214 percent; and state
Revenue Sources Dollars Percent of Total
road capacity will increase by just 6 percent,
Federal funds 3,023.3 39.4%
if current financing patterns continue.
State motor fuel tax 2,227.1* 29.0%
TxDOT and regional metropolitan plan-
Vehicle registration 969.8 12.6%
ning organizations (MPOs) have identified
Bond proceeds 1,000.0 13.0%
$188 billion worth of transportation projects
Other 455.2 5.9%
needed to achieve an acceptable level of mobil-
Total State Highway Fund 7,675.4 100.0%
*About a fourth of motor fuels taxes collected in Texas go to fund public education.
ity, as determined by MPOs and the citizens
Note: Numbers may not total due to rounding.
Source: Texas Department of Transportation. they represent, in Texas communities by 2030.
According to TxDOT, however, traditional
Exhibit 24 funding mechanisms will provide only $102
billion over that period. This leaves the state
Texas Mobility Fund, Fiscal 2007
In millions with a significant funding gap. To help offset
it, TxDOT is partnering with private compa-
Revenue Sources Dollars
nies to finance, build and operate toll roads.82
Taxes, Fines, Fees & Misc. $147.0
Toll roads on the Texas state highway
Bonds Proceeds $2,200.0
system currently include about 22 centerline
Total Texas Mobility Fund $2,347.0
Source: Texas Department of Transportation.
miles on State Highway 255 (formerly the
28
Camino Colombia Toll Road) and about 65 projects. But in either event, the local entity
centerline miles (currently open or under or TxDOT must ensure that there are free
construction) on State Highway 130, State roads equal to or greater than what existed
Highway 45N and Loop 1 (the Central prior to the construction of the toll road
Texas Turnpike Project). An additional eight project. DID YOU KNOW?
centerline miles connecting Interstate 35 S.B. 792 also requires TxDOT to assist
The Texas Department
with State Highway 130 and U.S. Highway local toll entities in the completion of their
of Transportation was
183 are in the early stages of construction. projects by providing rights of way owned appropriated $8.7
Local toll authorities such as those in Dallas by TxDOT and access to the state highway billion — about 10
and Houston also oversee toll roads, as do system by entering into an agreement with percent of the state
some regional mobility authorities. the local toll authority.84 budget — for fiscal
Other toll roads to be developed through 2008.
comprehensive development agreements Infrastructure Maintenance
with private transportation infrastructure As noted above, TxDOT is responsible
companies are in various stages of planning, for the preservation and maintenance of the
including: state highway system. System maintenance,
• Trans Texas Corridor-35; in fact, is the agency’s largest function in
• Interstate Highway 635 in Dallas; terms of the number of employees involved.
• State Highway 121 in Dallas; In fiscal 2004, 6,466 full-time-equivalent
• Interstate Highway 820/State Highway TxDOT positions were directly involved in
183 from Fort Worth to DFW; and the maintenance function, or about 43.5
• Loop 1604 and U.S. Highway 281, in percent of the agency’s personnel.
San Antonio. Highway system maintenance includes
roadway surface improvement, road base re-
Also, State Highway 99 (the Grand pairs, bridge and drainage structure inspection
Parkway) around the Houston area is a toll and maintenance and road sign and traffic sig-
road.83 nal repair. It also encompasses litter cleanup,
To help clarify roles, responsibilities and roadside mowing, rest area maintenance
authorities regarding toll roads, the 80th and the repair of damage caused by floods,
Texas Legislature passed Senate Bill 792, hurricanes and other disasters. According to
which establishes several new rules regarding TxDOT, 85 percent of its annual funding,
toll roads, who builds them and how they excluding money from the TMF, is consumed
are financed. Perhaps the most important by maintenance costs for existing transpor-
measure in S.B. 792 is that it designates lo- tation infrastructure. The 2007 Legislature
cal toll entities (county toll road authorities appropriated about $5.8 billion for contracted
and regional tollway authorities) as having and routine and preventive highway mainte-
the first option to build projects within their nance for the 2008-09 biennium.
jurisdiction. If local entities do not exercise As noted earlier, Texas has 49,829 bridges,
the option, TxDOT may undertake the about 40 percent more than any other state.
29
Their average age is 41 years for bridges on fiscal 2006, TxDOT contracted with various
the state highway system and 30 years for road and bridge construction companies to
those off the state highway system. As of replace or rehabilitate 549 bridges at a price
September 2006, 77 percent of Texas bridges of $544.6 million. In addition to the repair
DID YOU KNOW? (38,425) were classified by TxDOT as in and replacement contracts in fiscal 2006,
“good or better condition” or as having a the agency also had several contracts with a
In 2002, freight
“sufficient structure” to handle its current combined value of $417.5 million to build
shipments to, from and
load and capacity and meet all state and 249 new bridges.85
within Texas totaled
2.2 billion tons — with federal requirements. TxDOT’s maintenance funding also is
a value of $1.3 trillion. TxDOT conducts routine inspections of used to maintain the Texas portions of the
each bridge at least once every two years, Intracoastal Waterway and two toll-free ferry
classifying them by condition according systems. The ferry systems connect Port
to federal and state requirements. TxDOT Aransas to Aransas Pass and Galveston Island
estimates that Texas has 2,125 “structur- to the Bolivar Peninsula. In fiscal 2004, the
ally deficient” bridges. These bridges are ferry system at Port Aransas transported about
limited in their load-carrying capacity or 2.3 million vehicles, while the ferry system
are frequently under water; they can handle at Galveston transported about 2.1 million
their current capacity but create severe traffic vehicles. Maintenance of these ferries and the
delays. Texas also has 7,802 “functionally Intercoastal Waterway was appropriated $44
obsolete” bridges that do not meet current million for the 2006-07 biennium.86
design standards and cannot handle today’s
traffic volumes and types efficiently. Finally, Congestion
Texas has 1,409 “substandard-for-load-only” Mobility — the simple ability to travel —
bridges. These are not structurally deficient has long been important to the American
or functionally obsolete but have a load lifestyle. As more and more vehicles crowd
capacity less than the maximum permitted our roadways, though, traffic congestion is
by state law. having an increasingly debilitating effect on
Because TxDOT is continually upgrading our quality of life. According to the Texas
the current bridge system, it is difficult to Transportation Institute’s (TTI’s) 2007 An-
estimate what it would cost to fix all of the nual Urban Mobility Report, in 2005 conges-
state’s bridges to the TxDOT definition of tion caused 4.2 billion hours of travel delay
“good or better status” or that of a “sufficient and 2.9 billion gallons of wasted fuel in
structure,” (i.e., bridge meets current federal urban areas in the U.S. The study reported
and Texas requirements and is not struc- that the average annual delay per traveler in
turally deficient, functionally obsolete or those areas climbed from 14 hours in 1982
substandard for load only). To address those to 38 hours in 2005. Texas had nine cities
bridges that are in the most need of repair among the 85 largest urban areas.87
or replacement, TxDOT contracts with The TTI report recommended a number of
private companies to fix these bridges. In solutions to alleviate congestion including:
30
• making the system more efficient by TxDOT directly maintains 6,315 traffic
rapid removal of crashed or stalled signals costing $24.5 million annually. Texas
vehicles and timing traffic signals so that has 10,399 crossings between highways
more vehicles see more green lights; and railroads. The majority of these have
• adding road and transit system capacity electronic warning devices.89 In addition to DID YOU KNOW?
in critical corridors; TxDOT’s efforts, the Texas Department of
Texas sales and rental
• relieving chokepoints in both the road Public Safety, county sheriff offices and mu-
tax on motor vehicles
and transit system; nicipal police forces around the state enforce and manufactured
• changing usage patterns through flexible traffic and speed laws on Texas roads. Local housing totaled $3.33
work hours and combining trips; municipalities maintain and service thou- billion (ranking second
• providing choices such as different sands of traffic signs, traffic control equip- in tax revenues) in
routes, toll lanes, high occupancy vehicle ment and stop lights across the state. fiscal 2007.
lanes; and
• diversifying the residential development Air Quality
patterns in communities to include a Improving air quality in Texas’ urban areas
blending of commercial and residential is an enormously important priority that can
areas within close proximity so that improve the health and quality of life for all
walking is a viable option. Texans and prevent the loss of federal high-
way dollars that are essential to the state’s
According to TTI, “public transportation transportation system.
improvements are particularly important in The federal Energy Policy Act of 1992 re-
congested corridors and to serve major activity quired state governments to acquire light-du-
centers.” TTI advocates the use of mass transit, ty vehicles powered by alternative fuels and
including buses and commuter or “light” rail to gradually convert their fleet to alternative
(where appropriate), to help congested areas fuels. 90 In addition to the Act, car manufac-
cope with their mobility problems.88 turers and the public have gradually accepted
alternative fuels and hybrid technologies.
Safety Issues Since that time, the number of vehicles
TxDOT coordinates the Texas Traffic Safe- powered by alternative fuels has grown
ty Program and the State and Community significantly. As of March 2007, there were
Highway Safety Program and implements more than 10.5 million vehicles using al-
the provisions of the Highway Safety Plan, ternative fuel in the U.S. In Texas, 966,000
which provides communities with state and vehicles, or about 5 percent of all vehicles
federal grant funding for traffic safety proj- registered in the state, were classified as
ects. During fiscal 2007, TxDOT funded hybrids, flexible-fuel vehicles or vehicles ca-
about 860 traffic safety programs at a cost of pable of using alternative fuels. (Flexible-fuel
$40.9 million. Program topics include safety vehicles can use multiple fuels to power their
belts, child safety seats, speeding, aggressive engine, such as either regular gasoline or an
driving and driving under the influence. ethanol-gasoline mix.)91
31
• What strategies can Texas use to conserve water resources to ensure that all
Texans have access to clean and affordable water?
• How can Texas generate enough affordable and clean energy for its rapidly
growing population?
• What strategies can Texas use to fund new roads, rails and air capacity to meet
the demand of a rapidly growing population?
• What strategies can Texas use to ensure adequate maintenance of roadways
and bridges?
33
34
Health Care
35
Emergency room care for people without shortage. In 2005, Texas had 144,602 reg-
insurance is largely uncompensated, or un- istered nurses practicing in Texas, with 85.8
paid, by government programs or any other percent working full time and 14.2 percent
third party. But someone has to pay for this employed part-time.119
DID YOU KNOW? treatment. In the case of public hospitals, The Texas Center for Nursing Workforce
local taxpayers end up bearing much of the Studies and the Texas Department of State
In 2006, there were
cost through their local property taxes. Health Services estimated that Texas will be
639 registered nurses
And again, hospitals also shift this cost to some 71,000 full-time nurses short of the
and 65 primary care
physicians for every insurers in the form of higher bills, driving number it will need by 2020. If Texas is to
100,000 Texans. up the rate of health insurance for both em- meet this projected need, its 84 nursing pro-
ployers and employees — and driving some grams must educate an estimated 25,000 new
employers out of the market. nursing graduates annually by 2020, roughly
Texas hospitals reported spending $10.2 four times the 6,300 who graduated in 2005.120
billion on uncompensated care in calendar When nurses are in short supply, hospitals
year 2005.117 Roughly two-thirds of the cost must reduce their services, leading to over-
of uncompensated care is borne through crowded emergency rooms, longer waits for
higher insurance premiums paid by insured elective surgeries and limited or discontinued
patients and their employers. Various federal, programs.121 More important, the qual-
state and local government programs pay the ity of patient care can suffer. A number of
remaining third. studies have found that more hours of care
In 2005, Texas families spent an extra by registered nurses lead to better care and
$1,551 in health insurance premiums to cover fewer complications. Increases in registered
the unpaid health care bills of the uninsured. nurse-to-patient ratios have been associated
In that year, the average premium cost for with lower hospital-related mortality rates as
family coverage in Texas was $11,533, of well as shorter hospital stays.122
which employers paid about 75 percent and One of the biggest problems limiting
families paid about 25 percent. Texas’ aver- nurse training is a lack of qualified nursing
age premium was 7.5 percent higher than the faculty. Many qualified students are turned
national average of $10,728.118 away each year simply because nursing pro-
grams are full.123 In 2006, the American As-
The Nursing Shortage sociation of Colleges of Nursing estimated
Hospitals must have enough health care that U.S. nursing colleges and universities
providers to pursue their missions effectively. turned away more than 32,000 qualified
They rely on a wide variety of specialized applicants, primarily due to a shortage of
professions, but the most critical health care nursing educators.124
work force issue identified in the 2005-2010 In 2005, the Texas Higher Education
Texas State Health Plan, a major state plan- Coordinating Board reported that 12,250
ning document, issued by the Texas Depart- qualified applicants — 54 percent of the
ment of State Health Services, was a nursing total — were not offered admission to Texas
38
nursing programs. (It should be noted that the U.S. earned an average of about $6,633
this number may include duplicates, since (Exhibit 26).126
students can apply to multiple schools.) The nursing shortage is even more acute in
In 2005, administrators of Texas nursing rural Texas, where only 9 percent of Texas’
programs reported that many qualified ap- registered nurses practice. Nonmetropolitan
plicants were not admitted due to a lack of counties in Texas have a much lower ratio of
budgeted faculty positions, qualified faculty registered nurses to population than urban
applicants and clinical teaching space.125 counties. In 2006, urban areas had a ratio
Texas faculty salaries lag behind what of 678 registered nurses to 100,000 resi-
nurses with advanced degrees can make in dents, compared to 406 registered nurses per
other jobs. Nurses with a master’s degree in 100,000 in rural areas.127
an advanced practice specialty are qualified Some progress has been made in recent
to teach, but often can earn more money as years, under the Texas Professional Nursing
nurse practitioners or in advanced clinical Shortage Reduction program. In 2007, the
or administrative positions. For example, a Texas Legislature appropriated $7.4 million
Texas instructor in a bachelor’s degree nurs- to the Texas Higher Education Coordinat-
ing program earned an average of $5,064 ing Board for the program. The funding will
monthly in 2004, but a nurse manager in be distributed to nursing programs showing
Exhibit 26
U.S. and Texas Median Monthly Salaries for Nursing Positions
veterans who sought care at the Michael E. Connection links South Austin primary care
DeBakey Veterans Affairs Medical Center, physicians with specialists and the South
medical histories, lab reports and prescription Austin Hospital. The program intends to add
drug records were available immediately and labs and pharmacies to the network as well.
in full on an electronic system.140 Physicians using the system will be able to
Yet physicians and hospitals have a long see and enter test results, specialists’ con-
way to go in adopting existing technologies. sultation notes and hospital visit records on
This means that it is more difficult to use their office computers or at the hospital.145
medical records to improve medical care,
measure the quality of care, or reduce errors. Telemedicine
Federal laws and regulations on health in- Some rural areas lacking in health care
formation privacy pose additional complica- professionals or transportation to health care
tions in using such data. Privacy and security centers are turning to telemedicine. Telemed-
are key issues in handling patient records.141 icine or, as it is sometimes called, telehealth,
Most doctors’ offices and hospitals still store involves the use of information technology
medical records on paper. Only one quarter of to provide long-distance health care.146
U.S. physicians reported using full or partial Using videoconferencing or other special-
electronic medical records in 2005.142 ized equipment, doctors can sit in their offices
A 2005 survey by the Texas Medical As- miles away from a patient and provide expert
sociation found that only 27 percent of or specialist care, helping to diagnose or
Texas physicians were using electronic health treat illnesses. They can see and interact with
records. Many doctors stated that cost was patients and other health care providers by
the primary factor preventing them from the patient’s side. And doctors and nurses in
adopting electronic systems. Estimated remote areas can use telemedicine to learn new
median costs per doctor for automation were techniques or continue their medical educa-
put at $20,000, and larger groups of physi- tions without traveling hundreds of miles.
cians reported higher estimated costs.143 Telemedicine can be used to reduce or
A 2006 Rural Health Resource Center eliminate unnecessary health care costs. A Texas
survey of 58 Texas rural hospitals found that Tech physician and burn specialist, Dr. John
only 48 percent of respondents had a formal Griswold, said that before telemedicine started,
information technology plan. Most had burn patients would stay home and get even
computerized health claims submission, pay- sicker, until they needed hospital care. Now,
roll and admissions processes, but an over- he said, “We’re seeing the patients sooner, with
whelming 84 percent did not have electronic almost no complications or readmissions.”147
medical records.144 Telemedicine technology is readily avail-
Some Texas communities are develop- able, but its cost can be prohibitive. Many
ing regional initiatives to link their medical telemedicine projects obtain funding from
facilities and data electronically. In Austin, federal sources or nonprofit groups, but such
for example, a pilot program called Critical funding has been limited.148
42
At present, Texas’ Medicaid program the way for telemedicine in the state. Since
will not reimburse the cost of telemedicine 1990, Texas Tech has conducted more
equipment. Furthermore, under current than 18,000 consultations via telemedi-
Texas rules, Medicaid will provide reim- cine technology. Specialists in orthopedics,
bursement only for consultations or inter- general surgery, internal medicine, urology,
pretations of medical data delivered through gastroenterology, neurology, psychology,
telemedicine, and for a standard office visit pediatrics and psychiatry have shared their
to the remote physician.149 expertise.152 A physician’s office in Alpine, in
Several recent state laws have provided a the Big Bend region, is linked electronically
basis for increased Medicaid coverage of tele- to Texas Tech health experts; a school nurse
medicine. Most recently, 2007 legislation re- in Hart, Texas relies on their expertise as
quires the Texas Heath and Human Services well. Texas Tech also operates a correctional
Commission, the state’s Medicaid admin- telemedicine program for Texas Department
istrator, to better provide for reimbursing of Criminal Justice (TDCJ) facilities in the
remote consulting physicians and health care western part of the state.153
professionals who are present with a patient UTMB has used telemedicine since 1995.
at the remote site.150 Previously, Medicaid At this writing, the school provides indigent
would only reimburse the provider at the medical care in Brazoria and Liberty counties;
patient’s side for a standard office visit.151 contracts with five school districts and coun-
Texas’ health science centers, most nota- sels domestic abuse victims at a women’s crisis
bly Texas Tech University Health Sciences center in Nacogdoches. UTMB’s telemedicine
Center and the University of Texas Medical system also provides correctional health care
Branch at Galveston (UTMB), have paved for inmates at the TDCJ facilities.154
43
44
Education
45
tinue to do so through 2040, according to cur- education based on school district and campus
rent projections. The segment with the greatest ratings tied to certain measurable indicators.
growth is Hispanics, whose share will grow to The system currently uses TAKS test scores,
about 60.9 percent of the total; Whites will alternative test scores for Special Education
decline to 25.9 percent; Blacks will decline to students, annual dropout rates and school
9.5 percent; and “Other” ethnicities will grow completion rates.162 Using these indicators, the
to 3.7 percent of the total (Exhibit 27).158 system rates school districts and campuses as
In addition, the state’s share of students iden- “Exemplary,” “Recognized,” “Academically Ac-
tified as Limited English Proficient (LEP) rose ceptable” or “Academically Unacceptable.”163
from 13.4 percent in 1996-97 to 16 percent of As of August 2007, excluding charter
all children in 2006-07.159 The Texas Educa- schools, 19 Texas public school districts were
tion Agency (TEA) reports that 127 languages rated Exemplary; 190 were rated Recognized;
are spoken by the state’s schoolchildren.160 801 were rated Academically Acceptable; and
Texas also has seen a significant increase in 21 were rated Academically Unacceptable. Of
the number and percentage of economically total campuses, again excluding charter opera-
disadvantaged students in public schools. In tors, 628 were rated Exemplary; 2,317 were
the 1996-97 school year, about 1.8 million rated Recognized; 3,891 were rated Academi-
students, or 48.1 percent of all Texas stu- cally Acceptable; 232 were rated Academically
dents, were identified as economically disad- Unacceptable; and 661 were listed as “Not
vantaged. In the 2006-07 school year, about Rated: Other.”164 The latter category includes
2.5 million children — 55.5 percent of all districts and campuses that are not rated in
Texas students — were considered economi- the accountability system, such as alternative
cally disadvantaged.161 education or early childhood programs.
The key criterion of the accountability
Accountability system is the competency of students in
In 1990, the Texas Legislature established core subjects as measured by testing against
the state’s first accountability system for public academic standards.165 The most current
standards, the Texas Essential Knowledge and
Skills (TEKS), became effective on September
Exhibit 27 1, 1998. Texas Assessment of Knowledge and
Ethnicity of Students in Texas Public Schools Skills (TAKS) testing based on these standards
1996-97 Actual – 2040 Projected began in spring 2003, and accountability rat-
ings using the new tests began in fall 2004.166
1996-97 2006-07 2040
Ethnicity Actual Actual Projected The 2007 Texas Legislature, however, passed
White 45.6% 35.7% 25.9% legislation that phases out TAKS for grades
Black 14.3% 14.4% 9.5% 9-12, including the exit-level test required to
Hispanic 37.4% 46.3% 60.9% receive a diploma. In its place, beginning in
Other 2.7% 3.6% 3.7% the 2011-12 school year, ninth-grade students
Total 100% 100% 100% will take end-of-course exams in core subjects,
Sources: Texas Education Agency and Texas State Data Center.
46
I campuses and 179 non-Title I campuses entering ninth-graders in the 2004-05 school
missed the standards.176 year; this plan includes all of the courses that
Although the state uses TAKS results to most colleges require for admission. Students
comply with NCLB, TAKS is not compara- also may graduate under the Distinguished
ble with other states’ tests. The NAEP tests, Achievement plan, which has even more
however, provide for interstate comparisons stringent requirements; or the Minimum
of proficiency in core subject areas.177 plan, which is less stringent than the Recom-
In 2007, the NAEP found that 30 percent mended plan, requiring only 22 credits to
of Texas’ fourth-graders were proficient or bet- graduate, but parental and school approval
ter in reading compared to a national average are required for participation.182
of 32 percent. Forty percent were proficient or As a result of these changes, the percentage of
better in mathematics, compared to a national students graduating under the Recommended
average of 39 percent. On the other hand, 84 or Distinguished Achievement plans rose from
percent of fourth-graders met the TAKS read- about 51 percent in 2000-01 to more than 75
ing standard in 2007, and 86 percent met the percent in 2005-06, although the total number
TAKS mathematics standard (Exhibit 31).178 of public high school graduates in Texas peaked
The NAEP also found that 28 percent of in 2003-04 with 244,165; in 2005-06, only
Texas eighth-graders were proficient or better 240,485 graduated (Exhibit 32).183
in reading, compared to a national average In addition to stronger graduation require-
of 29 percent; 35 percent were proficient ments, the state has made more college-level
or better in mathematics compared to a courses available to students in high school.
national average of 31 percent. About 89 Students are being offered more Advanced
percent of eighth-graders met the TAKS Placement (AP) and International Bacca-
reading standard in 2007, and 73 percent laureate (IB) courses, which provide col-
met the TAKS mathematics standard.179 lege credit if students score high enough on
exams. In 2006, 18.9 percent of students at-
Outcomes tempted at least one AP or IB exam, and 51.3
Texas business and educational experts percent of them met the minimum score for
have stressed the need to continue increasing college credit on at least one exam.184 Con-
educational standards to make more students current or dual-enrollment courses, which
college-ready.180 The number of credits required provide both high school and college credit,
to graduate under Texas’ “Recommended” are becoming more common as well.
graduation plan has risen to 26, beginning with Despite recent progress, many education and
students entering the ninth grade in the 2007- business leaders remain concerned that Texas is
08 academic year; the number of advanced not producing enough high school graduates
mathematics and science credits required under with the skills needed to succeed in college or
the program increased from three to four.181 the workplace. To help address this concern,
The more stringent Recommended plan the Texas Legislature in 2006 directed the State
became the standard graduation plan for Board of Education (SBOE) to develop college
49
Exhibit 32
readiness standards and incorporate them into graduates are prepared to succeed in college
the TEKS. To assist SBOE in this task, the Leg- or the workforce. As noted above, SBOE will
islature also directed the commissioners of edu- make the final decisions on what to include
cation and higher education to appoint “vertical in the TEKS. 186
teams” of high school and college faculty. These Many students are not reaping the advan-
vertical teams are responsible for developing tages of recent educational improvements.
college readiness standards in English language The most common reason for dropping out
arts, math, science and social studies. These is falling behind in school. Freshmen have
standards will be subjected to public comment the highest retention rates — that is, the rate
before being approved by the Commissioner at which they are forced to repeat a grade.
of Education and the Texas Higher Education In 2005-06, 16.5 percent of Texas freshmen
Coordinating Board. They will then be submit- were retained in Grade 9, the highest rate
ted to SBOE for consideration; SBOE has final by far of any grade. Grade 10 had the next
authority for deciding what will be included in highest rate, at 8.7 percent; on the other
the new curriculum standards.185 hand, only 1.8 percent of eighth-graders
In April 2007, Governor Perry appointed were retained. Hardest-hit are minorities,
the Commission for a College Ready Texas who are about twice as likely to be held
to “engage all Texans in a discussion of what back; about one in five Black and Hispanic
skills and knowledge a student must possess students do not advance to Grade 10 after
to be college ready, and to provide expert Grade 9.187
resources and general support to the verti- The Texas Education Agency’s (TEA’s) re-
cal teams and the State Board of Education ported attrition rate, which compares ninth-
(SBOE).” The commission, of which Comp- grade enrollment in 2002-03 (372,396)
troller Susan Combs is a member, released to twelfth-grade enrollment in 2005-06
a report in November 2007 outlining its (256,799) was 31 percent; however, this rate
findings and recommendations. The report does not take into account such factors as
made recommendations to strengthen the student enrollment growth or retention and
state’s high school curriculum to help ensure students who graduate early, receive a GED
50
or leave for a legitimate reason other than and 63.5 percent of Asians attend college
dropping out.188 within a year of graduating.191
Using TEA’s current definition, the 2005- For those who do not, some may attend
06 annual dropout rate for Texas public proprietary schools to obtain a skill or creden-
school students in Grades 9-12 was 3.7 tial while others begin employment, usually in
percent; for Grades 7-12, it was 2.6 percent. low-skilled, low-wage positions. For students
TEA’s annual dropout rate is much lower who do not intend to further their education
than its attrition rate because it only mea- beyond high school, career and technology
sures the number of students who dropped education is their only chance to learn a skill
out in one year — the “annual” rate. TEA before entering the work force.
recently changed its dropout rate defini-
tion to the National Center for Education Career and Technology Education
Statistics’ definition, to allow for interstate Secondary career and technology educa-
comparisons, so TEA’s current rates cannot tion in Texas and throughout the nation
be compared with its previous rates. NCES has become more expansive, rigorous and
defines a dropout as a student who “does not integrated with academics in recent years.
return to public school the following fall, is This trend began in the 1990s, in response to
not expelled, and does not graduate, receive demands for more skilled and knowledgeable
a GED, continue school outside the public employees that could adapt to the changing
school system, begin college, or die.” 189 demands of a global economy.
Males represented a higher proportion About 941,000 Texas public school students
of dropouts than females — 55.5 percent were enrolled in a career and technology
compared to 44.5 percent; of the total 7th- program in 2006-07, a number representing
12th grade population, males represented almost half of all students in grades 7-12.192
51.3 percent compared to 48.7 percent for Business education has the highest concentra-
females. Among ethnic groups, Hispanics tion of students, with 35 percent of career and
represented 56.5 percent of total dropouts technology students enrolled in at least one of
compared to 22.6 percent for Blacks and these courses in 2004-05. About 19 percent
19.4 percent for Whites; of the total 7th-12- were enrolled in family and consumer sci-
th grade population, Hispanics represented ences; the remaining study areas each had less
41.5 percent compared to 15.4 percent for than 15 percent of total enrollment.193
Blacks and 39.6 percent for Whites.190 The variety of courses in career and technol-
Of the total students who graduate from ogy has expanded in recent years, as computer
high school, about one-half attend a two- technology has opened new fields and occupa-
year college or undergraduate university tions and gender barriers have been reduced.
within a year of graduation. Of total gradu- Some schools have developed “academies” in
ating students, about 41.6 percent of His- certain areas, such as business or allied health,
panics, 44.5 percent of Blacks, 46.6 percent which offer courses that are integrated to pro-
of Native Americans, 57.7 percent of Whites vide for a cohesive continuum of training.
51
Another significant change in career and tuition, fees and books, which can provide
technology education has been the infusion a disincentive, although colleges may waive
of academics and an understanding of global all or some portion of these tuition and fees.
competitiveness, making them more relevant TEA currently has a pilot project to reim-
and challenging than in the past. burse certain districts for books bought for
To provide more course options and the lat- economically disadvantaged students.195
est technologies, texts, equipment and informa-
tion, many high schools have formed partner- School Finance
ships with community colleges and universities; The total actual cost of Texas public educa-
if they qualify academically, students may tion, including capital outlay and debt service,
take some courses at a community college or was $9,629 per student in 2005-06; instruction
university campus or from a college professor represented 44.6 percent of that amount. Since
who teaches at the high school. Students may the 2000-01 school year, the total actual cost
receive high school and college credit for these per student has risen by 16.8 percent, from
dual or concurrent enrollment classes. $8,245. The average teacher salary increased by
Texas Higher Education Coordinating Board 8.8 percent during the same time period.196
(THECB) rules allow students to take no more State funding for public education is pro-
than two dual or concurrent enrollment classes vided through the Permanent School Fund,
per semester unless they meet certain excep- the Available School Fund and the Founda-
tional qualifications. Some high schools may tion School Program. The Foundation School
further limit this number.194 More commonly, Program, composed of state revenue and local
students enroll in Tech Prep programs, which property tax revenue, funds the largest share
provide college credit for college-level technol- of education. State funds are disbursed ac-
ogy courses taken in high school upon gradua- cording to a system of formulas based on dis-
tion and enrollment in the community college. trict and student characteristics. State funding
High schools generally require students is intended to ensure that each school district
enrolling concurrently to pay for course can provide adequate educational resources to
Exhibit 33
meet the needs of its students regardless of its budgeted to increase primarily because federal
local property tax base. and other local revenue are expected to decline
One issue that has been debated for many sharply. State share is likely to increase again
years has been the declining state share of pub- for the 2007-08 school year as the new school
lic school funding. By 2005-06, local property funding system is fully implemented.199
taxes were providing 48.3 percent of all revenue Preliminary data from TEA confirm that
used to fund public schools, as opposed to 43 the state share of aid will expand in fiscal
percent in 2000-01; the state’s share declined 2007 and 2008 as a result of actions by the
from 41.8 percent to 33.9 percent over the 2007 Legislature. Exhibit 34 shows the state
same period (Exhibit 33).197 In 2004-05, share growing from 52.6 percent in fiscal
compared with other states, Texas ranked 49th 2006 to 61.5 percent in 2008; the total
in the state’s share of per pupil revenue but funding per student, as measured by Refined
17th in its local share of per pupil revenue.198 Average Daily Attendance (RADA), will also
In an effort to ease the burden on property grow by 44.7 percent, from $4,852 in fiscal
taxpayers, the 2005 Legislature cut school 2006 to $7,026 in fiscal 2008.200
property taxes by an estimated 11 percent As the state’s accountability system has
in 2007 and 33 percent in 2008; however, matured, funding teacher pay according to
increasing property values are likely to offset performance has become a subject of debate.
some of this relief. Budgeted financial data Starting in fall 2007, Texas began fund-
for 2006-07 show the state’s share of revenue ing the “Awards for Student Achievement”
growing to 41.5 percent and increasing by teacher incentive program at $97.5 million
almost $2 billion over the previous year. In ad- per year for teachers at educationally dis-
dition, revenue from local taxes is budgeted to advantaged campuses; in addition, the new
decline to $18.8 billion from $19.1 billion in Educator Excellence Awards Program will
2005-06; however, the percent of local share is provide $147.8 million in fiscal 2009 for
Exhibit 34
teacher incentive funding in districts with than for people with comparable education
approved plans.201 and experience because they work under a
The base amount that teachers are paid is 10-month contract.)
another ongoing issue; as a result, the 2005 A related issue has been the need to reduce
Legislature provided funding for a net $2,000 high turnover rates, especially among less
base salary increase for teachers.202 The 2007 experienced teachers. Average salaries for all
Legislature further increased educator salaries teachers have risen over the last several years,
by about $430 for the 2008-09 biennium.203 but pay for beginning teachers, especially, and
During 2006-07, Texas teachers earned those with less experience has increased at a
an average of $44,897 for regular duties, higher rate than that for more experienced
17 percent more than the $38,361 average teachers since 2000-01 (Exhibit 35).205
for 2000-01.204 (The average is affected by The state’s number of teachers with less
the teachers’ collective number of years of experience also increased at a higher rate
experience and state and local pay increases. (Exhibit 36).206
Average salaries for teachers may also be less This shift has reduced Texas teachers’ aver-
age years of experience from 11.9 in 2000-
Exhibit 35 01 to 11.3 years in 2006-07. The average
turnover rate also declined, from 16 percent
Texas Average Actual Salary, Public School Teachers, in 2000-01 to 15.6 percent in 2006-07, pos-
2000-01 and 2006-07 School Years
sibly due to the salary increases.207
2000-01 2006-07 Percent
Experience Average Average Change Higher Education
Actual Salary Actual Salary
Beginning $29,824 $38,095 27.7% Higher education is critical to the Texas
1-5 Years $31,987 $39,880 24.7% economy because it is the key to providing a
6-10 Years $35,304 $42,380 20.0% highly qualified work force in an increasingly
11-20 Years $41,755 $47,042 12.7% technical world. Higher education also helps
>20 Years $48,183 $55,028 14.2% to meet specific local and regional employer
Source: Texas Education Agency.
demands for skilled employees. Finally, it
provides higher salaries throughout a gradu-
Exhibit 36
ate’s lifetime, increasing the quality of life for
Texas Public School Teachers, By Years of Experience, these individuals and their families.
2000-01 and 2006-07 School Years
The Texas Legislature recognized the
Percent importance of these factors by referencing
Experience 2000-01 2006-07 Change
the Texas Higher Education Coordinating
Beginning 21,493.2 25,153.0 17.0%
Board’s Closing the Gaps master plan for
1-5 Years 75,174.0 90,607.2 20.5%
higher education in state law.208 The plan calls
6-10 Years 49,717.2 60,919.8 22.5%
11-20 Years 69,508.6 73,448.4 5.7%
for improved statewide participation, better
>20 Years 58,923.6 61,337.9 4.1% graduation outcomes, improved excellence
Note: Number of teachers is based on full-time equivalent teachers. and increased research funding by 2015.209
Source: Texas Education Agency.
54
Exhibit 37
g
Texas Public Institutions of Higher Education
Upton
Terrell
In addition, the Texas Workforce Com- providing flexibility that allows the system
mission lists about 250 proprietary and to respond relatively quickly to changes in
nonprofit schools in the state, many with enrollment, employer and regional demand.
multiple campuses, offering career and Even so, THECB reports that 17 percent of
technology training.211 Online opportunities two-year students in its Southeast region and
also have increased the availability of higher 15.6 percent in its Northwest region attended
educational programs to anyone with access Texas two-year institutions outside their
to a computer. home region in 2005, compared with just 5.6
To make more classroom education avail- percent statewide. This may reflect a lack of
able in regions with growing or high demand, institutions within these (generally more rural)
and to conserve on costs, the state has estab- areas; closer proximity of students to institu-
lished nine higher education centers, some- tions in neighboring regions; or greater avail-
times called multi-institution teaching centers ability of course offerings in other regions.215
(MITCs), that offer courses at one central THECB’s Northwest and Upper East
location or at several sites. MITCs are partner- Texas regions ranked highest in 2005 for the
ships between institutions of higher education percentage of students traveling outside the
and may include public community and tech- region but within the state to attend under-
nical colleges, public universities and indepen- graduate universities — 65.3 percent and
dent colleges and universities. Students enroll 64.1 percent respectively, compared with
through their college or university but can 36.3 percent statewide. These percentages
attend classes at the MITC.212 probably reflect the relatively low number of
In addition, Texas is establishing a new universities in those regions.216
medical school in El Paso and has authorized Demand has outstripped the supply of cer-
a new MITC in East Williamson Coun- tain programs, such as nursing, throughout the
ty.213 Certain junior colleges also have been state. In response, Texas has increased incentive
authorized to offer up to five baccalaureate funding for nursing and other allied health
programs.214 These additions will increase programs in short supply and streamlined the
availability for undergraduate and graduate process for establishing new nursing programs
education in areas of the state where demand beginning in 2007.217 As a result, some areas
has outpaced availability. are starting to see lower nursing demand or are
Texas’ community colleges, which are open projecting additional nurses being available in
to anyone who applies and serve almost all the near future.218 Although the demand is still
areas of the state, offer a variety of one-year greater than the supply, THECB reports that
technical certifications and two-year associate the state is now on target for meeting its 2015
degrees in a wide variety of technical and aca- goals for graduates in health fields.219
demic subjects. In addition, the community
college system offers many classes at night and Accessibility
on weekends year-round, through the Internet Another factor affecting participation
and at satellite centers such as high schools, in higher education is the accessibility of
56
educational opportunities. One of the most Despite these increases, since the statewide
debated aspects of this issue has been admis- share of Hispanic enrollment also increased,
sion to Texas universities. the university continues to lag about 7.8 per-
Since 1998, the state has guaranteed admis- centage points behind the statewide share.223
sion to Texas public universities to all Texas In all, then, UT’s Hispanic share of total
high students ranked in the top 10 percent of enrollments rose by 4.1 percentage points
their high school graduating classes. Starting in from fall 2000 to fall 2007, the same as
2008-09, freshmen must also graduate under statewide enrollment growth of 4.1 percent-
the more demanding Recommended or Dis- age points. From fall 2000 to fall 2005,
tinguished Achievement high school gradua- however, the Hispanic share of the state’s
tion plans to gain automatic admission under total population increased by 3.6 percentage
the 10 percent rule. (See the Outcomes section points, from 32 percent to 35.6 percent. At
for a discussion of graduation plans.)220 this rate of growth, enrollments statewide
Higher education leaders attribute the in- and at UT will continue to lag behind the
creased numbers and percentages of minorities, Hispanic share of the state’s population.224
particularly Hispanics, enrolled in Texas institu- Black enrollment at UT grew by 33.6 per-
tions, and particularly at the University of Texas cent from fall 2000 to fall 2007, from 1,582 to
at Austin (UT), primarily to the 10 percent 2,113; this represents an increase from 3.2 per-
rule; other factors, such as increased recruit- cent of total enrollment to 4.2 percent during
ment and incentives, also have contributed.221 the same period. Statewide, Black enrollment
The Hispanic population in Texas rose by increased from 9.8 percent of total enrollment
22.1 percent from 2000 to 2005 (most re- to 11.4 percent.225 The Black share of the state’s
cent data available).222 Total Hispanic enroll- total population fell from 11.5 percent in 2000
ment at Texas public universities rose from to 11.4 percent in 2005, which means that the
81,180 in fall 2000 to 117,816 in fall 2007, gain in share of enrollment has been a real gain
a 45.1 percent increase; UT’s total Hispanic when compared with population growth.226
enrollment rose from 5,920 to 7,991 over The 10 percent rule also is having an effect
the same period, a 35 percent increase. on the number and percentage of females ac-
The increase in UT’s Hispanic enroll- cepted to Texas public universities. Statewide,
ment is more significant than these numbers 62 percent of students accepted under the 10
indicate, however, since UT kept its total percent rule in summer and fall 2006 were fe-
enrollment relatively flat from fall 2000 to male, compared with only 54.8 percent of total
fall 2007 at about 50,000 students, com- students accepted; females represented 53.9
pared with an 19.9 percent increase in total percent of all applicants. At UT, 58.5 percent
enrollment for public universities statewide. of students accepted under the top 10 percent
UT increased the Hispanic share of its total rule were female, but only 46.5 percent of
enrollment from 11.8 percent in fall 2000 students accepted under other criteria were
to 15.9 percent in fall 2007, compared with female. Females represented 54.3 percent of all
19.6 percent to 23.7 percent statewide. students accepted to the university.
57
The percentage of first-time undergradu- tively flat total acceptances and enrollment
ates accepted to Texas public universities compared to an increase in applicants in the
who ranked in the top 10 percent of their top 10 percent group and a cut in total ac-
high school graduating class rose from 21.1 ceptances in fall 2003. UT cut total accep-
percent in fall 2000 to 23 percent in fall tances in fall 2003 by almost 1,000 students
2006. First-time undergraduate acceptances from the year before and did not exceed
at UT under the 10 percent rule, however, fall 2002 acceptance levels until fall 2006.
have increased from 31.9 percent in fall Although UT increased total acceptances by
2000 to 72.8 percent in fall 2006. The top 11.2 percent over the fall 2000 to fall 2006
10 percent group at UT increased from 52.1 period, total first-time undergraduate enroll-
percent of fall enrollment of first-time un- ment rose only slightly, by 2.6 percent, after
dergraduates in 2000 to 75.8 percent in fall dipping below fall 2000 levels in fall 2003
2006. Statewide, the top 10 percent group (Exhibit 39).228
enrollment rose from 25.3 percent to 26.5 Nearly 40 percent of all Texas students who
percent of the total enrolled (Exhibit 38).227 qualify for automatic admission under the
The increase in the top 10 percent group as 10 percent rule apply to UT.229 A continuing
a percentage of the total enrolled as first-time rise in the number of high school graduates
graduates at UT was due primarily to rela- accepted to UT under the rule poses a po-
tential problem for some who prefer that the
Exhibit 38 university maintain its current size, as it has
The University of Texas at Austin for many years, and employ more than one
and Statewide Students Under Top 10 Percent Rule criterion to select students; others view it as a
as Percent of Total First-time Undergraduates positive way to increase qualified candidates
100% and minority enrollment.230
Although the total number of first-time
90
undergraduate students at Texas public uni-
80
versities has increased, the percentage of ap-
70 plicants accepted has declined slightly, from
600 88.5 percent in fall 2000 to 87.6 percent in
500 fall 2006; the number of applications grew by
400 41 percent and the number of applications
300 that were accepted grew by 39.6 percent. The
200 top 10 percent group grew as a percentage of
enrollment from 25.3 percent to 26.5 percent
10
from fall 2000 to fall 2006.231 These data in-
0
2000 2001 2002 2003 2004 2005 2006 dicate that for the most part, universities are
expanding to accommodate applicants, and
UT Percent of Applicants UT Percent of Acceptances UT Percent of Enrollments
SW Percent of Applicants SW Percent of Acceptances SW Percent of Enrollments the top 10 percent group is having little effect
on competitiveness.
58 Source: Texas Higher Education Coordinating Board.
of the total; and 5.8 percent came from other In fiscal 2006, about half of all students at-
sources.237 Total annual aid has risen by about tending Texas public and private institutions,
60 percent since fiscal 2002, but the state has more than 582,000, received some type of
more than doubled the amount it contrib- need-based aid. This represented 62.5 percent
utes.238 of students who enrolled and applied for such
The state’s largest program, the TEXAS aid. Of the total receiving aid, 94 percent
Grant Program, which began in fiscal 2000 registered Texas as their home state.241
with $19.8 million, disbursed $198.7 mil- Despite recent increases in state financial
lion to 62,435 recipients in fiscal 2008. An aid, the gap between actual college costs
estimated 42,000 students that qualify for and aid received by Texas students rose from
the grant in fiscal 2008 will not receive it $2.3 billion in fiscal 2001 (in constant 2006
due to inadequate funding levels.239 dollars), to $3.9 billion in 2006, a 71 percent
Another new effort, the B-On-Time Loan increase in costs that students and their fami-
Program, which forgives loans of students lies must cover (Exhibit 40).242
who graduate on time, provided 7,384 Estimated average annual tuition and fees at
students with $26.9 million in fiscal 2006. Texas undergraduate universities, based on 30
Currently, the program has no funding for semester credit hours, increased by $2,128, or
new students.240 61.8 percent, from 2003 to 2007.243
Community colleges have the lowest tuition
Exhibit 40 and fee requirements, although students who
Aggregate Costs of Attendance vs. live outside community college taxing districts
Aggregate Financial Aid Funds must pay more than in-district students. An-
Constant 2006 Dollars nual public community college tuition and
In millions
fees for students living within the community
$10,000 college taxing district, based on 15 credit
9,000 hours for each semester, averaged an estimated
8,000 $1,639 in 2007-08, compared with $5,569 for
7,000 undergraduate universities. THECB estimates
total 2007-08 resident costs of attending com-
6,000
0
munity colleges — including tuition and fees,
0
5,000
books and supplies, room and board, transpor-
4,000
tation and personal expenses — at $10,456,
3,000
0
and undergraduate institutions at $16,995.244
0
2,000
1,000
Participation
0
FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 By fall 2006, Texas was about a third of the
way to reaching its Closing the Gaps par-
Aggregate Cost of Attendance
ticipation outcomes for total enrollment in
Aggregate Financial Aid Funds
undergraduate education for 2015. Progress
60 Source: Texas Higher Education Coordinating Board.
toward the goal, however, as measured by 2015, and THECB cited this improvement as
the percentage of the population enrolled in “one of the most important accomplishments”
higher education institutions, is slowing. The since the start of the effort. Enrollment for
plan also sets goals for increased participa- this group was 31.5 percent higher in fall
tion of Hispanic and Black students; while 2006 than in fall 2000 and is equivalent to
progress is on target for Blacks, it is below 5.4 percent of this group’s estimated popula-
target for Hispanics.245 tion — up from 4.6 percent in 2000.250
Fall 2006 enrollment in all colleges and The public college and university popula-
universities in the state was 1.2 million, tion is projected to increase to 1.1 million
about 5.3 percent of the state’s population. by 2040, assuming 50 percent of the net
Enrollment was 5 percent of the population migration rate that occurred during the
in 2000; the 2010 goal is 5.6 percent and 1990-2000 decade. Enrollment in public
the 2015 goal is 5.7 percent, which would community colleges is projected to grow to
place Texas third among the ten most popu- about 588,000 and to 478,000 for public
lous states behind California and Illinois.246 colleges and universities.251
Enrollment in public institutions represented Hispanic enrollment as a share of the total is
90.3 percent of the total in 2006. Enroll- projected to increase to 44.2 percent by 2040;
ment in two-year institutions amounted to all other ethnicities are projected to decline as
48 percent of the total.247 a percentage of the total. White enrollment
Community colleges absorbed the greatest is projected to decline to 38.4 percent; Black
enrollment increase, rising 29.2 percent from enrollment, to 9.4 percent; and other ethnici-
fall 2000 to fall 2006, an increase represent- ties, to 7.9 percent (Exhibit 41).252
ing more than 126,000 students. Public About half of all Texas high school gradu-
universities increased their enrollment by ates enroll in a higher education institution in
18.5 percent, or more than 76,000 students, the fall following graduation; of these, about
over the same period.248 half attend two-year institutions. In recent
Although Hispanic enrollment at all Texas years, Texas has strengthened its high school
public and independent institutions rose by
40.7 percent from fall 2000 to fall 2006, their
participation represented only 3.9 percent of Exhibit 41
the Hispanic population in 2006. While this
Public College and University Enrollment by Ethnicity
was an improvement over the 3.7 percent
participation rate in 2000, it is well below 2040
Fall 2000 Fall 2006 Projected
the Closing the Gaps targets of 4.8 percent for
White 55.4% 49.7% 38.4%
2010 and 5.7 percent for 2015. To reach the
Black 10.4% 11.3% 9.4%
2010 target alone, Hispanic enrollment must
Hispanic 24.4% 28.4% 44.2%
increase by another 41.9 percent.249 Other 9.8% 10.6% 7.9%
Black enrollment is on target for meeting Total 100.0% 100.0% 100.0%
the Closing the Gaps goals for both 2010 and Note: Numbers may not total due to rounding.
Sources: Texas Higher Education Coordinating Board and Texas State Data Center.
61
graduation requirements, improved academic math and science graduates. On the other
content in all grades, established standards hand, the state is above target for increasing
and accountability systems and expanded its allied health and nursing graduates by 2015,
offerings of dual-enrollment classes.253 an area that is still in high demand. Growth
These changes should improve student from 2000 to 2006 was 30.9 percent despite
preparation for the work force and increase a decline from 2000 to 2001 that did not
the share of students who attend college after recover for two-year institutions until 2003
high school. The share of Texas high school and for four-year institutions until 2004.255
graduates entering Texas public higher Although the increase in the total num-
education institutions in the fall following ber of bachelor’s and associate’s degrees and
graduation rose from 43.4 percent in 2000 certificates awarded is currently on target,
to 46.1 percent in 2006, a difference of more the trend is slowing and flattening. The 27.1
than 18,000 students.254 percent increase in degrees awarded since
fiscal 2000, which rose to 147,705 degrees
Graduation in fiscal 2006, will not be enough to reach
Trends show that Closing the Gaps college the 2015 goal of 210,000. To meet this goal,
graduation outcomes are on target for meet- institutions must increase the number of de-
ing overall 2015 goals, but the state is slight- grees awarded by another 42.2 percent from
ly below its target for producing math and fiscal 2006 (Exhibit 42).256
science teachers and well below its target for Improving the college readiness of high
school students can improve the number of
students who stay in college, which in turn
Exhibit 42 will improve graduation rates. A steadily
Public and Independent Institutions’ Bachelor’s and increasing percentage of first-time, full-time,
Associate’s Degrees and Certificates Awarded degree-seeking students entering Texas pub-
and “Closing the Gaps” Targets lic universities are now graduating –– about
24.3 percent within four years and about
250,000 56.7 percent within six years.257
For Texas community colleges, 11.7 percent
200,000 of first-time, full-time students received a
credential within three years as of fiscal 2005,
150,000
and 30.6 percent did so within six years.
This represents an improvement from fiscal
100,0000
2000, when 10.8 percent received a credential
50,000 within three years and 25.7 percent received
one within six years.258 About a third of stu-
0 dents who graduated from a Texas university
2000 2001 2002 2003 2004 2005 2006 Target Target in 2005 had completed at least 30 semester
2010 2015
credit hours at a community college.259
62 Source: Texas Higher Education Coordinating Board.
In fall 2003, about one-half of first-time known ranking in this field, as one source
entering students did not meet state stan- to evaluate this measure.263 The publication
dards in at least one area of math, reading or uses a wide variety of criteria, including
writing. For public universities, the total was acceptance, retention and graduation rates,
21.2 percent and for two-year institutions, it class size, faculty measures, expenditures
was 61.6 percent.260 per student, peer assessment, alumni giving,
About 65.8 percent of the high school student selectivity and other measures.264
graduating class of 2006 took either the SAT For the upcoming 2008 year, U.S. News
or ACT college entrance exams; of those, & World Report ranked UT 13th among
only 27.1 percent scored at or above the public institutions, and Texas A&M Univer-
criterion used to determine college readiness. sity, 23rd.265 UT has steadily improved its
In 2007, about 53 percent of high school ranking, from 17th in 1999; but A&M has
students were college-ready in English fallen from 15th, a place it held from 1999
Language Arts and 54 percent in Mathemat- through 2002.266
ics, according to the TEA’s higher education For public and private research institu-
readiness testing program.261 tions, THECB employs rankings from
Recent increases in high school gradua- Arizona State University’s Center for Mea-
tion requirements and the strengthening suring University Performance.267 The center
of academics throughout public education uses criteria based on factors such as research
may improve these percentages in the future. and development expenditures, including
In the meantime, students and institutions federally sponsored research expenditures;
must rely primarily on costly noncredit, endowments; significant faculty awards;
remedial courses to prepare students for doctorates granted; the number of postdoc-
college-level work. toral appointments supported; and median
entering student SAT scores (as an indicator
Quality of student competitiveness).268
Besides participation and graduation out- In 2006, according to the Center for Mea-
comes, Closing the Gaps calls for increasing suring University Performance rankings based
excellence in higher education. on 50 criteria, among public and private in-
The Closing the Gaps target for 2010 is for stitutions, UT tied at 28th nationally, A&M
one research institution, either public or ranked 32nd and Baylor College of Medicine
private, to be ranked in the top 10 nationally tied at 40th. Among public institutions only,
and for two additional universities to rank the center ranked UT tied at 13th with the
among the top 30. For 2015, the goal is for University of Florida and A&M at 16th.269
two public research institutions to be in the On the other hand, the plan is on target
top-ten national rankings for public research for meeting national recognition goals for
institutions, and four in the top 30.262 excellence in certain programs, including
THECB uses the rankings from U.S. News those of community colleges. In addition,
& World Report, which produces the best- the plan calls for increasing the state’s share
63
of federal research and development funding University Fund and the Higher Education
for science and engineering research, a goal Fund that are used for capital expenditures.
that is slightly below target as of 2007.270 Of this total, 36.4 percent came from state
The plan’s other research goal — to increase appropriations; 28 percent from tuition and
overall research funding in real dollars — fees; 19.3 percent from the institutions’ funds;
is on target for meeting its 2015 goal.271 In- and 16.3 percent from federal funds. The fiscal
creased research funding, and particularly an 2006 general revenue appropriation per full-
increased share relative to other institutions, is time equivalent (FTE) student was $6,259, 8.4
one measure of quality since it demonstrates percent more than in fiscal 2004. Total revenue
the degree of confidence that funding sources per FTE student was $17,185, an 18.2 percent
have in an institution’s capability. increase since fiscal 2004. The difference was
due mostly to higher tuition and fee revenue.274
Funding Community colleges receive funding for
State appropriations to higher education, their operations primarily from tuition and
including federal and other funds, totaled fees and state appropriations, augmented by
$16.9 billion in 2006-07 — 11 percent local tax revenue; local tax revenue pays for
more than in the previous biennium.272 their infrastructure and equipment. State ap-
Higher education received $10.1 billion propriations are based on a dollar amount per
in state general revenue appropriations for “contact” hour — each hour a student spends
operations support for the 2006-07 bien- in class with a professor. The state’s technical
nium, an 8 percent increase from 2004-05. two-year colleges receive funding primarily
Of this amount, public universities received from tuition and fees and state appropriations.
$4.3 billion; health-related institutions, $2.4 Average general revenue funding per con-
billion; community and technical colleges, tact hour for community colleges declined
$2.1 billion; and other higher education from $7.47 in 2000-01 to $6.62 in 2006-
programs, $1.3 billion.273 07 — about 11.4 percent — after reaching
In fiscal 2006, total revenue for Texas public a high of $7.71 in 2002-03. Funding will
undergraduate universities amounted to $7.1 increase to $7 per contact hour for these
billion, excluding funds from the Permanent institutions in 2008-09.275
• What can Texas do to keep the costs of higher education affordable for all Texans?
• What can Texas do to increase the number of bachelor’s and associate’s
degrees awarded?
• What can Texas do to draw in more research dollars for institutions of higher
education?
• How do we prepare non-college bound Texans for careers that will provide
economic benefit to them, their families and the state?
64
Economic Development
increase income and enhance the growth rate among states and nearly doubled 2007, a 10.2 percent
the national rate of 1.1 percent. Texas added increase from fiscal
community’s quality of life. 2006.
more jobs over this period than second-place
Businesses consider many factors in deciding Florida and third-place California combined.276
where to locate or expand, such as the skill of Even so, Texas employment growth cooled
an area’s work force, the quality of its schools somewhat in 2007; in 2006, the state added
and infrastructure and the economic incen- 313,000 jobs, a 3.2 percent increase repre-
tives it offers. Federal, state and local govern- senting the state’s fastest growth since 1998
ments can employ a variety of economic (Exhibit 43).277
development tools to pursue these businesses, In January 2007, the Texas unemployment
including grants, loans and other incentives. rate dipped below the national rate for the first
65
Government
Texas Exports
Sources: Texas Comptroller of Public Accounts, Global Insight, Inc. and U.S. Bureau of Labor Statistics.
Exports are extremely important to the
Texas economy. Texas exports have achieved
government. All service sectors experienced four consecutive years of double-digit growth
job gains in 2006 except for information, and now account for 15 percent of Texas
an industry that is still recovering from the GDP, the highest share of any state. Today,
dot-com “bubble” of several years ago, and Texas leads the country in export trade and
contending with increased competition and accounts for 14 percent of all U.S. exports.291
DID YOU KNOW? lower prices. All service industries increased Texas has emerged as a leading exporter
employment in 2007, including a slight in high-tech manufacturing, including
Texas added more jobs
increase in the information sector. computer and electronics manufacturing.
than any other state in
In 2006, professional and business ser- Twenty-six percent of all export-related jobs
fiscal 2007.
vices led the services industries both in job are in computer and electronics equipment
growth and the number of jobs produced. manufacturing, the most skill-intensive work
This sector is important to Texas, consisting associated with exports. This figure compares
as it does of many knowledge-based, high- to 16 percent for the nation as a whole.
paying positions, such as architects, system Research shows that the higher the skill level
designers and engineers. Despite a decline in among export-related jobs, the greater the
68
Economic Outlook 6
As the Texas economy continues to 5
diversify, it will increasingly mirror the 4
U.S. economy, although it has fared better 3
2
compared to the country during a period
1
of rising energy prices. The Comptroller’s
0%
office expects the growth in Texas GDP to
-1
slow to 3.2 percent for 2007, 3 percent in
-2
2008 and 3 percent in 2009. The outlook in -3
Texas is largely positive, despite this expected -4
slowdown. -5
Texas must focus on attracting and -6
creating innovative and highly paid jobs to 1991 1993 1995 1997 1999 2001 2003 2005
Many of those who spend a greater proportion of their income on energy use are those who cannot
afford to remedy the problem. The majority of low-income individuals spend more than 40 percent of
their income on utilities, often due to older, inefficient home appliances and an inability to pay for home
energy efficiency improvements. The State Energy Conservation Office and the federal Energy Star
program are combining resources and efforts to facilitate two projects that address such issues with low-
income households. Both projects are designed to enable sponsors to provide services and outreach to
Texas citizens that might not otherwise participate due to a lack of resources. These projects are some
of the first of their kind in the country and are already proving to be examples for others. Energy Star is a
joint partnership of the Environmental Protection Agency and the U.S. Department of Energy. For more
information, visit the State Energy Conservation Office Web site at http://www.seco.cpa.state.tx.us.
70
Texas Department of Agriculture through stateloc05/. In addition to the grants and Texas received $24.4
the Office of Rural and Community Af- loans for cities and communities listed above, billion in federal funds
fairs. The programs are designed to create many other opportunities exist for businesses, during fiscal 2007, a
new jobs or retain existing jobs, primarily industry and farms including the Small Busi- decrease of 1.4 percent
for low- or moderate-income individuals, in ness Association and the U.S. Department of from fiscal 2006.
cities with fewer than 50,000 residents and Agriculture.
counties with fewer than 200,000 residents
that do not receive direct funding from Comptroller Assistance
HUD. For more information, please visit One of the many functions of the Texas
http://www.agr.state.tx.us/agr/program_ Comptroller’s office is providing economic
render/0,1987,1848_6050_0_0,00.html? development information to local govern-
channelId=6050. ments and other groups, and analyzing the
The four programs include the Downtown demographic, labor force and other eco-
Revitalization Program, the Infrastructure nomic factors needed to generate economic
Development Program, the Main Streets growth in communities. Through the Texas
Improvement Program and the Real Estate EDGE (Economic Data for Growth and
Development program. These programs Expansion) Program, the agency can run
provide funds for land acquisition, public economic models and provide analyses that
infrastructure improvements and real estate identify occupational and industry trends
development designed to encourage business and their effects on the regional economy.
development and expansion. The Comptroller’s office also can provide
71
Texas EDGE
Short for Economic Data for Growth and Expansion, the Texas EDGE program has received more than 100
requests and has assisted many local entities since its inception in August 2007. Here are a few examples of
what the Comptroller’s Texas EDGE has done for Texans:
• provided a regional economic model (REMI) analyzing the economic impact of the World Cheerleading
Hall of Fame on the Houston – Sugar Land – Baytown MSA.
• in response to a request for information on retail sales data for Cameron County, provided Sites on
Texas Executive Summary Report for Cameron County and the city of San Benito. In addition, the
program calculated sales tax allocation data per capita.
• provided a REMI report for the economic impact of a new biomedical research company that opened
in Jim Wells County.
• provided sales tax history for the last 10 years for the city of Gonzales in graph and table form.
• provided information on changes in manufacturing employment in Texas from September 2000 to
September 2007.
• provided economic data, including income statistics, on Tarrant County and Southeast Fort Worth,
down to the zip code level.
• provided a State of Texas Automated Information Retrieval System (STAIRS) report for Aransas
County.
• provided Standard Occupational Classification forecast information for construction professionals from
the Texas Workforce Commission for the Gulf Coast Workforce Development Board and for the state.
For more information, visit the Texas EDGE Web site at http://www.window.state.tx.us/texasedge.
local demographic data, identify business requests thus far, about one third, have been
clusters and provide maps of regional infra- on economic development.
structure including highways, railroads and The Comptroller’s office also provides local
other public facilities. For assistance, please governments with information about tax-
visit www.window.state.tx.us/texasedge or related programs and identifies opportunities
e-mail texas.edge@cpa.state.tx.us. to raise funds for economic development
Since August 2007, the Comptroller’s efforts through property, sales and franchise
office has responded to more than 100 tax revenues, exemptions and credits. The
Texas EDGE requests. Requests have come agency also provides information on special
from city government officials, county assessments and other opportunities related
government officials, economic develop- to disaster relief.
ment corporations, private businesses and The Local Government Assistance and
members of the media. Requests have come Economic Development Division at the
in for information on many topics includ- Comptroller’s office can provide a free risk
ing demographics, economic development, assessment to local governments. A risk as-
economic modeling and taxes. Most of the sessment can give reasonable assurance that
72
73
74
Conclusion
75
Exhibit 48
Map of Economic Regions
Map
2 3 4
11 7
5
12 8
6
1. High Plains 9
2. Northwest Texas
3. Metroplex
4. Upper East Texas
5. Southeast Texas
6. Gulf Coast 10
7. Central Texas
8. Capital
9. Alamo
10. South Texas
11. West Texas
12. Upper Rio Grande
76
Endnotes
1
U.S. Census Bureau, “American Fact Finder—2006 http://txsdc.utsa.edu/tpepp/2006projections/
Population Estimates,” http://factfinder.census.gov/ summary/prstab-01.txt. (Last visited December 18,
servlet/GCTTable?_bm=y&-geo_id=01000US&-_ 2007.)
12
box_head_nbr=GCT-T1-R&-ds_ Texas State Data Center and Office of the State
name=PEP_2006_EST&-format=US-9S. (Last Demographer, “Population and Percent Change by
visited December 17, 2007.) Race/Ethnicity in the State of Texas, 1980-2000,”
2
Texas State Data Center, Office of the State http://txsdc.utsa.edu/data/census/2000/redistrict/
Demographer, “2006 Total Population Estimates pl94-171/desctab/re_tab1.txt. (Last visited October
for Texas Counties,” http://txsdc.utsa.edu/ 12, 2007.)
13
tpepp/2006_txpopest_county.php. (Last visited Texas State Data Center and Office of the State
December 17, 2007.) Table 7.7 Demographer, “Table 5: Percent of Population
3
U.S. Census Bureau, “Table 2: Annual Estimates of by Age Group and Race/Ethnicity in 2000 and
the Population by Selected Age Groups and Sex for Projected Percent of Population by Age Group and
the United States: April 1, 2000 to July 1, 2006,” by Race/Ethnicity from 2010 to 2040 with Median
http://www.census.gov/popest/national/asrh/ Age for 2000 and Projected for 2010 to 2040
NC-EST2006/NC-EST2006-02.xls. (Last visited by Race/Ethnicity for Texas Under Alternative
December 13, 2007.) Assumptions of Age, Sex and Race/Ethnicity-
4
U.S. Census Bureau, “State Population Estimates— Specific Net Migration,” http://txsdc.utsa.edu/
Race and Hispanic Origin,” http://www.census. tpepp/2006projections/summary/prstab-05.txt.
gov/popest/states/asrh/SC-EST2006-04.html. (Last (Last visited December 18, 2007.)
14
visited December 18, 2007.) U.S. Census Bureau, “Table 2a: Projected
5
U.S. Census Bureau, “Table 3: Annual Estimates Population of the United States, by Age and Sex:
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15
asrh/tables/SC-EST2006-03-48.xls. (Last visited Office of Rural Community Affairs, The Status
December 13, 2007.) of Rural Texas, 2004 (Austin, Texas, January
6
U.S. Census Bureau, “Household Income— 1, 2005), p. 12, http://www.orca.state.tx.us/
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16
tables/08s0684.xls. (Last visited January 7, 2008.) Texas State Data Center and Office of the State
7
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8
Office of Rural Community Affairs, Rural Texas: December 18, 2007.)
17
Wrangling with Change (Austin, Texas, 2006), p. 3, Texas State Data Center and Office of the
http://www.orca.state.tx.us/pdfs/Status_2006.pdf. State Demographer, “Table 1: Population by
(Last visited January 4, 2008) Race/Ethnicity in 2000 and Projections of the
9
Irene Miles, “Urban Settlers Sprawl Into Population by Race/Ethnicity from 2010 to 2040
Countryside,” This Is Our Land (2001), p. 2. for Texas Under Alternative Assumptions of Age,
10
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18
for State Fiscal Years 2007-2011 (Austin, Texas, July Texas Water Development Board, Water for Texas:
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Strategic_Plan_FY_2007_2011.pdf. (Last visited 188, 194, 200 and 207.
19
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11
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20
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Population by Race/Ethnicity from 2010 to 2040 2007, Volume II, p. 120.
21
for Texas Under Alternative Assumptions of Age, Texas Water Development Board, Water for Texas
Sex and Race/Ethnicity-Specific Net Migration,” 2007, Volume II, p. 130.
77
22 34
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23
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35
(Austin, Texas, October 2004), p. 2, http://www. Texas Water Development Board, Surveys of Irrigation
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24
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36
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25
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37
2007, Volume II, p. 161. Texas Water Development Board, Water for Texas
26
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38
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27
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39
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28
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29
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30 40
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31
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33
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43
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44
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61
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45
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76
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4, 2007), p. C-1; David Hendricks, “Nurse Ethnicity for July 1, 2005 for State of Texas.”
227
Shortage Will Soon Ease,” San Antonio Express- Texas Higher Education Coordinating Board,
News (August 29, 2007), p. D-1; and Melissa First-time Undergraduate Applicant, Acceptance,
Ludwig, “Nursing Programs on the Rise,” San and Enrollment Information for Summer/Fall
Antonio Express-News (July 29, 2007), p. B-1. 2000 (Austin, Texas), http://www.thecb.state.
219
Texas Higher Education Coordinating Board, tx.us/Reports/PDF/0514.PDF; and Texas
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12. time Undergraduate Applicant, Acceptance, and
220
Texas H. B. 3826, 80th Leg., Reg. Sess. (2007). Enrollment Information for Summer/Fall 2006
221
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228
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Texas, September 14, 2006, http://www.thecb.state. First-time Undergraduate Applicant, Acceptance,
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visited January 5, 2008.) Texas Higher Education Coordinating Board,
222
U.S. Census Bureau, “Census 2000 PHC-T-6— First-time Undergraduate Applicant, Acceptance,
Population by Race and Hispanic or Latino Origin and Enrollment Information for Summer/Fall 2006;
for the United States, Regions, Divisions, and States, Texas Higher Education Coordinating Board,
and for Puerto Rico: 2000,” http://www.census.gov/ First-time Undergraduate Applicant, Acceptance,
population/cen2000/phc-t6/tab01.pdf (last visited and Enrollment Information for Summer/Fall 2002;
January 5, 2008); and Texas State Data Center, and Texas Higher Education Coordinating Board,
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229
txsdc.utsa.edu/tpepp/2005ASREstimates/alldata.pdf. Texas Higher Education Coordinating Board,
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223
Texas Higher Education Coordinating Enrollment Information for Summer/Fall 2006, pp. 1
Board, “Participation- Key Measures, and 67.
230
Headcount Enrollment, Statewide Totals,” Texas Higher Education Coordinating Board,
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231
=5db0b3f48038bc42-6A15C513-C660-52D0- Texas Higher Education Coordinating Board,
98C6B359D2E7C87D; and Texas Higher Education First-time Undergraduate Applicant, Acceptance, and
Coordinating Board, “Participation- Key Measures, Enrollment Information for Summer/Fall 2000, pp. 1
86 Headcount Enrollment, The University of Texas at and 63; and Texas Higher Education Coordinating
242
Board, First-time Undergraduate Applicant, Texas Higher Education Coordinating Board,
Acceptance, and Enrollment Information for Summer/ Report on Student Financial Aid in Texas Higher
Fall 2006, pp. 1 and 67. Education for Fiscal Year 2006, p. 15.
232 243
Texas Higher Education Coordinating Board, Texas Higher Education Coordinating Board,
First-time Undergraduate Applicant, Acceptance, and “H Ed Student Costs – Budget Summary
Enrollment Information for Summer/Fall 2000, pp. 1 all yrs to date.xls,” (Excel spreadsheet); and
and 63; and Texas Higher Education Coordinating CollegeforTexans.com, “College Costs – 2007-
Board, First-time Undergraduate Applicant, 2008,” http://www.collegefortexans.com/paying/
Acceptance, and Enrollment Information for Summer/ collegecostsfull.cfm. (Last visited January 7, 2008.)
244
Fall 2006, pp. 1 and 67. CollegeforTexans.com, “College Costs – 2007-
233
Texas Higher Education Coordinating Board, 2008,” http://www.collegefortexans.com/paying/
First-time Undergraduate Applicant, Acceptance, and collegecostsfull.cfm. (Last visited January 7, 2008.)
245
Enrollment Information for Summer/Fall 2000, pp. 1 Texas Higher Education Coordinating Board, Closing
and 63; and Texas Higher Education Coordinating the Gaps by 2015: 2007 Progress Report, pp. 1-5.
246
Board, First-time Undergraduate Applicant, Texas Higher Education Coordinating Board,
Acceptance, and Enrollment Information for Summer/ Closing the Gaps by 2015: 2007 Progress Report, pp.
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234
Texas H.B. 3015, 78th Leg., Reg. Sess. (2003). Board, Closing the Gaps: The Texas Higher Education
235
Tex. Educ. Code Ann. §56.033 and §56.011; Plan, p. 8. The state does not collect enrollment
CollegeForTexans.com, “Types of Financial data for postsecondary proprietary schools.
247
Aid,” http://www.collegefortexans.com/paying/ Texas Higher Education Coordinating Board, “Fall
finaidtypes.cfm (last visited January 6, 2008); 2006 Enrollment by Ethnicity 2006.xls,” (Excel
and TexasTomorrowFund.org, “Texas Tomorrow spreadsheet.)
248
Funds,” http://www.texastomorrowfunds.org. (Last Texas Higher Education Coordinating Board,
visited January 6, 2008.) (The state also requires “Higher Education Accountability System—
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236
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237
Texas Higher Education Coordinating Board, and Texas Higher Education Coordinating
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238
Texas Higher Education Coordinating Board, visited January 6, 2008.)
249
Financial Aid for College Students in Texas Fiscal Texas Higher Education Coordinating Board, Closing
Year 2002 (Austin, Texas, July 2004), pp. v and 7, the Gaps by 2015: 2007 Progress Report, p. 4; and
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250
Higher Education Coordinating Board, Report on Texas Higher Education Coordinating Board,
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251
Fiscal Year 2006, pp. 2-3 and 38. Texas State Data Center, “Table 7.7: Total Public
239
Texas Higher Education Coordinating Board, Report Education (All Levels), Public Elementary and
on Student Financial Aid in Texas Higher Education Secondary, Public Community College, Public
for Fiscal Year 2006, pp. 8 and 11-12; and Texas University, and Total Public College and University
Higher Education Coordinating Board, “TEXAS Enrollment for the State of Texas and Council of
Grant Projections.xls,” (Excel spreadsheet.) Government Regions in Texas by Race/Ethnicity
240
Texas Higher Education Coordinating Board, in 2000 and Projections to 2040 Assuming
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Education for Fiscal Year 2006, p. 8; and Texas Migration Scenario.)
252
Higher Education Coordinating Board, “Texas Texas State Data Center, “Table 7.7: Total Public
B-On-Time Loan Program Fact Sheet,” http:// Education (All Levels), Public Elementary and
www.hhloans.com/borrowers/BOTfactsheet.cfm. Secondary, Public Community College, Public
(Last visited January 6, 2008.) University, and Total Public College and University
241
Texas Higher Education Coordinating Board, Enrollment for the State of Texas and Council of
Report on Student Financial Aid in Texas Higher Government Regions in Texas by Race/Ethnicity
Education for Fiscal Year 2006, pp. 2 and 7. in 2000 and Projections to 2040 Assuming 87
278 285
Texas Comptroller of Public Accounts, “Monthly Texas Workforce Commission, “Texas Labor
Unemployment Rates for the U.S. and Texas,” Market Review, December 2007,” p. 2.
286
http://www.window.state.tx.us/ecodata/ecoind/ Texas Comptroller of Public Accounts, Annual
ecoind1.html#unemployment. (Last visited January Cash Report 2007 (Austin, Texas, 2007), p. 6; and
8, 2007.) Texas Comptroller of Public Accounts, “Texas
279
Texas Comptroller of Public Accounts, “Fall 2007 Gross State Product Detail: Calendar Years 1990-
State Economic Forecast,” http://www.window. 2035,” http://www.window.state.tx.us/ecodata/
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(Last visited January 7, 2008.) January 9, 2008.)
280 287
Texas Comptroller of Public Accounts, “Fall 2007 Texas Workforce Commission, “Labor Market
State Economic Forecast;” and Global Insight, Inc. and Career Information,” http://www.tracer2.
281
Texas Comptroller of Public Accounts, “Texas com/?PAGEID=67&subID=120. (last visited January
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1990-2035,” http://www.window.state.tx.us/ a Service Economy,” Southwest Economy (May/June
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288
(Last visited January 7, 2008.) Texas Workforce Commission, “Texas Labor
282
D’ann Peterson, “Texas Transitions to a Service Market Review, December 2007,” p. 2.
289
Economy,” Southwest Economy (May/June 2007), p. 3. Texas Comptroller of Public Accounts, “Texas
283
Texas Comptroller of Public Accounts, “Texas Nonfarm Employment Detail: Calendar Years
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290
1990-2035.” Texas Workforce Commission, “Texas Labor
284
Texas Comptroller of Public Accounts, Annual Market Review, December 2007,” p. 2.
291
Cash Report 2007 (Austin, Texas, 2007), p. 9; and Texas Comptroller of Public Accounts, Annual
Baker Hughes, “January 2000 – December 2007 Cash Report 2007, p. 5.
292
Rigs by State,” http://www.bakerhughes.com/ Anil Kumar, “Globalizing Texas: Exports and
investor/rig/rig_na.htm. (last visited January 9, High-Tech Jobs,” Southwest Economy (September/
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“Fall 2007 Economic Forecast.”
89
Page 5
U.S. Census Bureau, “2000 Census of Population and Housing, Population and Housing Unit Counts,” http://
www.census.gov/prod/cen2000/index.html. (Last visited January 11, 2008.)
Page 9
Texas Department of Agriculture, “Rural Texas Facts,” http://www.texasyes.org/ty/channel/render/
items/0,1186,827_1119_0_829,00.html. (Last visited January 11, 2008.)
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Race/Ethnicity in the State of Texas, 1980-2000,” http://txsdc.utsa.edu/data/census/2000/redistrict/pl94-171/
desctab/re_tab1.txt; and “Table 1: Population by Race/Ethnicity in 2000 and Projections of the Population by
Race/Ethnicity from 2010 to 2040 for Texas Under Alternative Assumptions of Age, Sex and Race/Ethnicity-
Specific Net Migration,” http://txsdc.utsa.edu/tpepp/2006projections/summary/prstab-01.txt. (Last visited
January 11, 2008.)
Page 12
Texas Parks and Wildlife Department, “Caddo Lake State Park,” http://www.tpwd.state.tx.us/spdest/
findadest/parks/caddo_lake/. (Last visited January 11, 2008.)
Page 20
U.S. Energy Information Administration, “State Energy Profile—Texas,” http://tonto.eia.doe.gov/state/
state_energy_profiles.cfm?sid=TX. (Last visited January 11, 2008.)
Page 21
U.S. Energy Information Administration, “State Level Energy Consumption, Expenditures, and Prices, 2004,”
http://www.eia.doe.gov/emeu/aer/txt/ptb0106.html. (Last visited January 11, 2008.)
Page 23
Texas Comptroller calculation based on data obtained from Texas Workforce Commission.
Page 27
Texas Comptroller of Public Accounts, Annual Cash Report 2007 (Austin, Texas, November 5, 2007), p. 37,
https://fmx.cpa.state.tx.us/fm/pubs/cashrpt/07/html/condition.php. (Last visited January 08, 2008.)
Page 29
Texas H.B. 1, 80th Leg., Reg. Sess. (2007).
90
Page 30
U.S. Department of Transportation, “Freight Shipments To, From and Within Texas,” http://www.ops.fhwa.dot.
gov/freight/freight_analysis/faf/state_info/faf2/pdfs/tx.pdf. (Last visited January 11, 2008.)
Page 31
Texas Comptroller of Public Accounts, Annual Cash Report 2007, p. 37.
Page 35
Texas H.B. 1, 80th Leg., Reg. Sess. (2007).
Page 38
Office of Rural Community Affairs, Wrangling with Change (Austin, Texas, January 1, 2007), p. 9, http://
www.orca.state.tx.us/pdfs/Status_2006.pdf. (Last visited January 11, 2008.)
Page 41
Office of Rural Community Affairs, Wrangling with Change, p. 9.
Page 45
Texas H.B. 1, 80th Leg., Reg. Sess. (2007).
Page 55
Texas H.B. 1, 80th Leg., Reg. Sess. (2007).
Page 65
Texas Comptroller of Public Accounts, Annual Cash Report 2007, p. 37.
Page 67
Texas Comptroller of Public Accounts, Annual Cash Report 2007, p. 37.
Page 68
Texas Comptroller of Public Accounts, Annual Cash Report 2007, p. 3.
Page 69
Office of the Governor, Texas Film Commission, “2006 Texas Regional Economic Impact Chart,” http://www.
governor.state.tx.us/divisions/film/general/TX_Film_2006-Detail_Chart.pdf; and “Texas 10-Year Economic
Impact Chart,” http://www.governor.state.tx.us/divisions/film/general/TX_Film_10-Year_Chart.pdf. (Last
visited January 11, 2008.)
Page 71
Texas Comptroller of Public Accounts, Annual Cash Report 2007, p. 37.
91