Taking Aim at Targets

Cities across Texas are targeting more tax dollars and taking more of a targeted approach to economic development, said Joe Newman, president of the Texas Economic Development Council.

"It's not so much the shotgun approach, like the old days. They know what industries their towns should focus on. Austin has gone after high tech for the past few years and now they're looking at things other than high tech. They want to diversify again," Newman said.

Newman said more than 300 Texas cities have imposed a sales tax to raise $140 million to promote economic development. "That may be the reason we're seeing such a shortage in economic developers. There are currently 29 job openings around the state for economic development professionals," he said.

Statewide, one of Texas's biggest strengths is its comparatively young and growing labor force. "A lot of states don't have the warm bodies," Newman said. "We're a right-to-work state that has the available labor that industry needs, and no state income tax."

Excel Logistics (inset) is among 14 companies locating this year at the Alliance Airport and Regional Development project, 15 miles north of Fort Worth, joining such corporate giants as Federal Express, American Airlines, Burlington Northern Santa Fe and Zenith Electronics.

Texas has been making its predominantly non-union labor pool an even bigger attraction with its new Smart Jobs Fund, a business incentive and work force training program that provided $7.7 million in grants to 77 companies in 1995 and $27 million in grants to 88 companies in fiscal 1996. Some 40 percent of the fund is earmarked for business and industry new to Texas. Newman still encounters the occasional newcomers "who are amazed we're not all cactus and cattle," he said. Then they discover the state's inviting coastal beaches, majestic West Texas mountains, rolling Texas Hill Country, lush citrus growing regions and rich East Texas forests. "Our tourist slogan is: 'It's like a whole other country.' And it is quite diverse," Newman said.

John Prickette, economic and business development manager for TU Electric, which provides electrical service to 91 Texas counties, said small and large cities alike are doing well. "As NAFTA matures, the outlook will be even stronger," he said, aided by a business-friendly state government headed by Gov. George W. Bush, the pro-business son of the former Republican president.

With the approach of the 21st century, "Texas is in a very strong, enviable position across the country," Prickette said. "We've got all the ingredients."

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