Texas Border Business
By Glenn Hamer, President & CEO, Texas Association of Business
The continued growth and success of Texas’ world-class business environment relies on many factors – low taxes, reasonable regulations, support for innovation, an affordable cost of living, reliable energy, and a superior quality of life for all residents who call Texas home. Yet, when it comes to investing in infrastructure for the most basic, critical natural resource that supports life for all Texans and their businesses – water – our state faces significant challenges in the coming decade that need to be addressed now before it begins to more significantly impact our economy. A recent report from Rice University’s Baker Institute for Public Policy found that Texas’ underinvestment in water infrastructure is likely costing approximately $2 billion each year just for revenue water lost from utility systems alone.
That’s why the Texas Association of Business (TAB) was delighted to join Texas 2036, along with 40 local and regional business organizations throughout the state, to launch the Texas Water Fund Coalition. The Coalition’s central goal is to ensure the Texas Legislature establishes a dedicated revenue source to find future water projects. In the November 2023 Constitutional Amendment Election, Texas voters overwhelmingly passed Proposition 6, which created the Texas Water Fund and appropriated $1 billion to get the ball rolling on water infrastructure. Senator Charles Perry (R-Lubbock), who authored legislation creating the Texas Water Fund, has shown fantastic leadership in recognizing the importance of state investment in water infrastructure the same way we invest in roads, bridges, and our electric grid.
Although the establishment of the Water Fund was a crucial first step, a larger challenge remains in the upcoming years.
Over the next 50 years, Texas 2036 anticipates our state will need to invest approximately $154 billion in water infrastructure to maintain our state’s high quality of life to continue attracting new residents, entrepreneurs, and businesses from around the world to grow and thrive here. This includes $59 billion in new water supplies, $73.7 billion to fix deteriorating water systems, and $21.1 billion to repair broken wastewater systems.
As David Leebron, President and CEO of Texas 2036made clear, water infrastructure and funding are key in maintaining the ‘Texas Miracle,’ and the availability of water is foundational to our economic engine:
“The continuation of Texas’ economic miracle hinges on securing a dependable water supply that will support our state’s growing communities and economy. This coalition is taking a long-term approach to ensure our water infrastructure supports a thriving, resilient Texas.”
Securing Texas’ water future is not the responsibility of a single organization, industry, or government entity—it’s a shared mission that demands collective action. The Texas Water Fund Coalition embodies this spirit of collaboration, bringing together leaders from business, nonprofits, and government to tackle one of our state’s most pressing challenges. Together, we will ensure that the resources driving Texas’ remarkable trajectory of growth remain abundant, sustaining the unparalleled success of our businesses, economy, and environment for generations to come.
If you are a chamber or economic development leader and are interested in lending your voice to this important issue, please click here to sign the coalition’s letter of support!
To read Texas 2036’s full report, Assessing Texas’ Water Infrastructure Needs, click here.
Information Source: TAB
