< Previous36 TEXAS ECONOMIC DEVELOPMENT GUIDE Texans. Also fueling our No. 1 economic development environment is our decentralized approach, relying on strong partnerships at the state, local and regional levels to bring continued investment and job creation to Texas. Working together, we will continue to build a bigger, better Texas for generations to come. Texas recently replaced the Chapter 313 incentives fund with another program known as JETI. Can you describe what the replacement program will do for businesses in your state? GOV. ABBOTT: The Texas Jobs, Energy, Technology, and Innovation (JETI) Act, passed and signed into law last year, was created as a new competitive economic incentive program to attract large-scale economic development projects, bringing new capital investment, and creating new, good-paying jobs in Texas communities. Administered by the Texas Comptroller of Public Accounts, this program is accepting applications right now. With new economic development incentive tools like JETI, coupled with our ongoing investments in infrastructure, education and workforce development, Texas will continue to attract even more innovative industry leaders to our state. Texas is focused on making strategic investments to ensure our communities have the tools they need to remain competitive in attracting businesses in 2024 and beyond. Energy has long been an industrial mainstay for the Texas economy. Do you expect the Biden Administration’s pause on approving any new LNG terminals to have any long-term effect on the Texas economy? GOV. ABBOTT: Texas is the No. 1 energy-producing state in the nation, and we expect to uphold this title well into the future. If Texas were its own country, we would be the fourth-largest oil and gas producer in the world. As the nation’s leader in crude oil and natural gas production, Texas’ dominance in this field is not slowing down. We are a leading state in the nation for LNG exports, and we are focused on upholding our leadership status. How important is the Texas Medical Center to your state and the country? GOV. ABBOTT: The Texas Medical Center (TMC) in Houston is critically important to our state, our nation and the world. Supporting our already strong biotech and life sciences industry, TMC is the largest medical complex in the world where medical innovations are pioneered that save people’s lives. TMC is also home to the world’s largest children’s hospital, the world’s largest cancer hospital, and the brightest minds in medicine. Not to mention, TMC supports Texas jobs, employing more than 120,000 people. The Texas biotech and life sciences ecosystem, including TMC and other world-class higher education institutions across the state, keep Texas on the cutting edge of science and medical research. What role do colleges and universities play in economic development in Texas? GOV. ABBOTT: Our state’s robust network of higher education institutions is key to our economic development success as they produce Joined by Tesla CEO Elon Musk, Governor Greg Abbott celebrated Tesla’s new lithium refining facility at a groundbreaking ceremony in May 2023 in Robstown, Texas. Photo courtesy the Office of the Governor of TexasTEXAS ECONOMIC DEVELOPMENT GUIDE 37 top talent and the best workforce in the nation. Texas is home to seven university systems, 37 public four-year universities, and 80 two-year colleges, not to mention six of the nation’s top 100 universities and 11 Tier One research universities. These institutions help to build a strong talent pipeline so that companies can find highly skilled and job-ready talent across the entire state. Thanks to our leading colleges and universities, coupled with innovative partnerships and programs in workforce development, Texas is truly building the workforce of the future. How does Texas foster and support innovation and entrepreneurship? GOV. ABBOTT: Texas has a strong focus on innovation and entrepreneurship. We lead the nation in high-tech exports, and we are the top state for semiconductor manufacturing and exports. Entrepreneurs have boundless opportunity in Texas. We are home to 3.2 million small businesses, which are the backbone of our booming economy. Businesses of all sizes are contributing to our expanding innovation network here in Texas. Men and women willing to take a risk, dig deep into their own pockets, and stake their future on an idea have long written the story of Texas. That pioneering spirit still fuels our shared prosperity today. As I talk to innovative entrepreneurs from around the world, they point to Texas’ world-class business climate that allows their companies to grow and their employees to succeed and enjoy a high quality of life in communities across our great state. What is Texas doing to make housing more affordable for working families? GOV. ABBOTT: Texas is focused on cutting property taxes to put more money in the pockets of hardworking Texans. With no corporate or personal income tax, Texas already has one of the lowest tax burdens in the nation, and I continue working with the Texas Legislature to make the state even more tax friendly. Last year, I signed the largest property tax cut in Texas history — $18 billion of Texas’ historic budget surplus will be allocated toward driving down school district property tax rates, increasing homestead exemptions for Texas homeowners, and increasing Franchise Tax exemptions and appraisal caps for small businesses. While we made historic progress in lowering property taxes for all Texans last year, we will continue working to put Texans on a pathway to eliminate school property taxes altogether. 40 TEXAS ECONOMIC DEVELOPMENT GUIDE INTERVIEW WITH TxEDCTEXAS ECONOMIC DEVELOPMENT GUIDE 41 W hen Aaron Demerson was appointed as the new president and CEO of the Texas Economic Development Corporation last October, the news was greeted with open arms from leaders across the state. Vicki Hollub, former chair of the TxEDC Board of Directors, said, “Aaron Demerson is the right choice to lead the Texas Economic Development Corporation into its next chapter. Aaron is an accomplished leader who has served as an advocate for over 660,000 employers and 3.2 million small businesses in his role at the Texas Workforce Commission. He knows what it takes to keep the Texas economy thriving, and we are excited to see his new ideas and energy at TxEDC.” Demerson comes to this role with a deep background in economic development. Prior to his stint at the Texas Workforce Commission, he served as senior advisor to then- Governor Rick Perry and served as executive director of the Office of Economic Development & Tourism in the Governor’s Office. In that role, he led a team that marketed the state as a premier destination for both business and travel. He also served as director of business development and director of administration for the Finance Division. In the following interview, we asked him how TxEDC supports economic development and gave him an opportunity to talk about some of Texas’ biggest successes: Meet the new leader of the TxEDC: Aaron Demerson. by RON STARNER The Texas Capitol building in Austin Photo: Getty Images the Competition Outworking 42 TEXAS ECONOMIC DEVELOPMENT GUIDE How does the Texas Economic Development Corporation support and grow economic development statewide? Demerson: Our job is to market Texas both domestically and internationally showcasing the best that Texas has to offer for employers looking to expand and/or retain their operations here in Texas. We promote our state and economic development through several marketing efforts that include: • Domestic/International Business Development missions. • All mediums of advertising — telling the great economic development success story that is Texas. • Assisting with the connection of our local economic development organizations with businesses looking to expand and or remain in Texas. The Texas Economic Development Corporation does this work in close strategic collaboration with our partners in the Governor’s Office of Economic Development & Tourism. What do you think were some of the state’s biggest economic development wins of the past year? Demerson: Texas had a number of economic development project wins and also a number of marketing wins that highlight the ability for businesses to both survive and thrive in Texas. Austin at sunset Photo: Getty ImagesTEXAS ECONOMIC DEVELOPMENT GUIDE 43 Those marketing wins include the following: • Best State for Business by Chief Executive Magazine in April 2023 • Best Business Climate in nation by Business Facilities in June 2023 • Best Business Climate in nation by corporate executives in Sept 2023 • Top Business Climate in nation by Site Selection Magazine in Nov 2023 • State of the Year by Business Facilities in January 2024 • Governor’s Cup Winner for 12th Year in a Row in March 2024 How important is FDI in Texas? Demerson: The Texas economy has grown to $2.4 trillion and is the eighth-largest economy in the world. Texas has also been the top exporting state for 22 years in a row. We remain proud of the fact that Texas is the top state for foreign direct investment and has been for over the last 20 years. We remain a top global destination for both business and travel and our goal is to do even more.44 TEXAS ECONOMIC DEVELOPMENT GUIDE What do you wish more people around the country understood better about Texas? Demerson: That Texas is a state blessed with hardworking people and dedicated employers all pulling in the same direction for success. We have a “can-do” attitude and spirit that often finds us to seeing challenges as opportunities. The ability to collaborate, especially in the world of economic development in a state as big as Texas, speaks to the caliber of the leadership and the people. The border with Mexico gets a lot of attention, but from an economic perspective, how important is Texas’ relationship with Mexico? Demerson: Our relationship with Mexico is very important as Mexico is our No. 1 trading partner. We have had formal relationships through a State of Texas Office in Mexico for over 30 years. In 2023, trade between Texas and Mexico totaled $272.2 billion, ranking Mexico as Texas’ No. 1 trading partner and Mexico was Texas’ No. 1 export destination in 2023 with $129.5 billion in exports. Is there anything else you want the reader to know about Texas? Demerson: I often refer to a portion of our “secret sauce” as our unique ability to bring together the worlds of workforce, economic development and education. Couple that with elected leadership who gets it, and we are well on our way to success — and in Texas, Governor Greg Abbott gets it! El Paso at night Photo: Getty Images “ In Texas, we bring together the worlds of workforce, economic development and education. Couple that with elected leadership who gets it, and we are well on our way to success. ” — Aaron Demerson, President & CEO, Texas Economic Development Corporation TEXAS ECONOMIC DEVELOPMENT GUIDE 45 W hen it comes to building an economic development powerhouse organization, no one does it better than Adriana Cruz. As executive director of the Texas Economic Development & Tourism Office within the Office of Governor Greg Abbott, Cruz has presided over an effort that has delivered a national championship- level performance year in and year out. When Governor Abbott appointed Cruz to this post in late 2019, the state was coming off an impressive run of economic development wins. Over the last four years, Cruz has taken Texas to an even higher level. In the following interview, we asked Cruz to detail that effort and explain what it takes to consistently deliver a best-in-class track record. Texas recently won its 12thstraight Governor’s Cup award from Site Selection magazine for landing the most corporate facility investment projects in the nation. What factors do you think are most responsible for this sustained run of success? CRUZ: We are so proud to take home once again the Governor’s Cup for the most corporate relocation and expansion projects in the U.S. — now With Cruz at the helm, the Lone Star State keeps winning national titles. by RON STARNER ‘Economic Development is a Sport in Texas’ Team ECONOMIC DEVELOPMENT & TOURISM INTERVIEWNext >