People are moving to Texas, and businesses are building new facilities. That rapid growth is straining resources, particularly water. According to a new report, Texas must invest $154 billion over the next 50 years in new water supply and infrastructure—critical needs to support the state’s expanding population and booming industries. The report from Texas 2036, a nonpartisan public policy think tank, highlights the urgency of this investment. Without reliable water infrastructure, Texas could face the loss of a million jobs and more than $160 billion in economic impact over the next five decades. The report underscores a stark reality: a comprehensive, sustainable funding strategy for water is necessary to keep Texas economically resilient and competitive. Investment Needs The 2022 Texas Water Plan and US EPA initially estimated that Texas would need $132 billion in water infrastructure investments over the next 50 years. However, Texas 2036 has adjusted this figure for inflation, raising the projected cost to $154 billion. While state and federal programs—such as the State Water Implementation Fund for Texas (SWIFT) and the newly established Texas Water Fund—are expected to provide around $40-45 billion in financial support over the coming decades, a significant long-term funding gap persists.   Click to expand Texas 2036 graphic showing cost estimate for water infrastructure needs Dual Challenges According to the report, Texas faces two challenges. First, the state must develop a broad, diversified water supply portfolio to meet the demands of a rapidly growing population and economy while strengthening resilience to future droughts. The water supply gap poses additional risks to the state’s electricity generation, as low water levels during droughts could limit power from natural gas, nuclear and coal plants. Second, aging and deteriorating drinking water and wastewater systems. Over the past five years, nearly 3,000 boil water notices have been issued annually, leaving communities without reliable water service.  Impact on Industries A severe, prolonged drought would have widespread effects on industries across Texas. Manufacturing, a key driver of the state’s economy, is one example.  The top five manufacturing regions—Dallas-Fort Worth, the Greater Houston area, East Texas (Beaumont, Tyler, Lufkin), Central Texas (College Station, Temple, Waco), and South Central Texas (San Antonio, Victoria)—together account for 82% of the state’s manufacturing GDP and 77% of its manufacturing jobs. According to research from Rice University’s Baker Institute for Public Policy, within the next 20 years, these regions could face nearly $20.8 billion in lost manufacturing GDP and over 116,000 job losses due to water shortages during a drought of record. The potential economic fallout underscores the need for immediate and strategic investments in water infrastructure to safeguard key industries and the communities that rely on them. Advocacy at the Capitol  Water infrastructure is one of the executive priorities for the Greater Houston Partnership for the 89th Texas Legislative Session. These priorities serve as a roadmap for the upcoming session, highlighting key areas of interest for the business community. The Partnership supports increased funding for the Texas Water Fund, preferably establishing a dedicated funding stream to ensure long-term, sustainable investments in the state’s water resources.   Learn more about how the Partnership advances strong policy that fosters long-term growth and upward economic mobility for the region.  

In the weeks before early voting, the Greater Houston Partnership will share essential information on the 2023 ballot initiatives that will impact our region. This week, we focus on state Propositions 8 and 10, which would allow Texas to expand its broadband infrastructure and become more competitive in attracting the medical and biomedical manufacturing industries. We will also go deeper into Harris County’s bond proposal, which would upgrade and enhance the hospital district’s facilities.  Prop 8: Bridging Texas' digital divide Equitable access to reliable, high-speed broadband provides economic opportunities to all Texans, and investment in broadband expansion enables local communities to thrive. However, U.S. Census Bureau data indicate almost 2.8 million Texas households and 7 million people lack broadband access. To close this digital divide, Proposition 8 creates the constitutionally dedicated Broadband Infrastructure Fund (BIF). The BIF will assist in financing connectivity projects and invest $1.5 billion toward expanding broadband infrastructure around the state, enabling Texas to successfully draw down funds from the federal Broadband Equity, Access, & Deployment (BEAD) Program. If approved by the voters, Proposition 8 will ensure our communities remain connected, competitive, and adaptable in the face of whatever challenges and opportunities tomorrow may bring. Prop 10: Boosting Texas' medical manufacturing competitiveness As Texas strives to become a hub for life sciences, our state needs to become a more attractive place for companies in the medical and biomedical industry to relocate.  By the numbers: Texas has one of the highest effective tax rates for the medical and biomedical manufacturing sector, taxing these businesses over 28%. For comparison, none of Texas’ largest competitors taxes the same industry more than 13.5%.  Proposition 10 is a constitutional amendment to exempt medical and biomedical manufacturers from the state’s inventory and equipment taxes, therefore reducing the effective tax rate for these manufacturers. If voters approve Proposition 10, Texas would be more attractive for existing medical and biomedical manufacturers to expand while also drawing new innovators to Texas from around the country and around the world.  Harris County Prop A: One step closer to urgent expansion The Harris Health System, our county’s hospital district, has provided care and served the residents of Harris County for nearly six decades. Acting as the county’s safety net care system and operating one of our two Level I Trauma Centers, the system is an integral part of our health care ecosystem.  By the numbers: Harris County's population has more than doubled in the past 30 years to nearly five million residents, while the facilities run by Harris Health have decreased in capacity, and many are nearing the end of their lifespans. This drastic increase in population over the decades has necessitated the need for an additional Level I Trauma Center, especially one located outside of the Texas Medical Center that is more easily accessible to all residents.  Harris County Proposition A seeks voter approval of a $2.5 billion bond issuance for constructing a new Level I Trauma Center, a new hospital, and other upgrades and investments in the Harris Health system’s facilities.  Important Election Information:  View the Greater Houston Partnership’s Ballot 2023 Initiative Guide before you head to the polls.  Important Election Information:  Last day to register to vote: Oct. 10 Early Voting: Oct. 23 – Nov. 3 General Election Day: Nov. 7 You may find more information on voting and polling locations here. Find more information on each of these ballot measures supported by the Greater Houston Partnership at Houston.org/2023ballot.