In lots of ways, Texas has been a huge success story under the watch of Gov. Rick Perry (R). Perry has gotten some sharp elbows for his job-poaching tours of other states, but on Monday Toyota announced it is moving its U.S. headquarters to Plano, outside Dallas, from the Los Angeles suburbs. It isn't the first company to leave California, or another state, for Texas. The Lone Star State added 1.3 million residents from 2010 to 2013, according to U.S. Census data. That's more than any other state.
Perry, the state's Republican-dominated legislature, and many analysts attribute this growth and low unemployment rate to the combination of low taxes, lax regulation, few public services, and tracking-related gas boom. What's indisputable is that most of the people are headed to Texas' already sizable cities: Houston (pop. 2.2 million) added 34,625 people from July 2011 to July 2012, while Austin (pop. 843,000) expanded by 25,395 residents. Austin, which still thinks of itself as a funky college town, is now the 11th largest city in the U.S., adding about 100 new people each day. Here's what Texas' growth looks like in graph form, via The Wall Street Journal:
But the Texas system, like every other governing philosophy in the world, has weak points, and the two big ones in the Lone Star State are water and transportation infrastructure. Texas is in a multi-year drought, and the population growth is putting a further strain on water resources. And then there's the aging and inadequate roads and public transportation: Texans, like many Americans, really like their cars and don't particularly like traffic. Austin has the fourth worst traffic in the U.S.
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There are other growing pains, too. "We are already straining our systems for water, power, schools, and roads," Texas State Demographer Lloyd Potter, a Perry appointee, tells The Wall Street Journal. "And they'll continue to be stressed unless we invest more heavily."
Most of the problems are fixable with money, but Texans — most lawmakers and residents — don't want to raise the money to fix them. There's no state income tax in Texas, so all those poached jobs add money to the state coffers only indirectly, through things like sales and property taxes and service fees. Instead of raising taxes to build new roads, Texas lawmakers prefer to let private companies build an incompatible array of toll highways.
The problems aren't going away. By 2040, demographers predict that Texas will have 40 million residents, from more than 26 million today. If the water becomes scarce and roads semi-permanent parking lots, that prediction probably won't come to fruition.
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