Methodology. Surveyed members from influential Chambers of Commerce in Texas: Arlington, Austin, Corpus Christi, Dallas, Fort Worth, and San Antonio.
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2 Methodology Surveyed members from influential Chambers of Commerce in Texas: Arlington, Austin, Corpus Christi, Dallas, Fort Worth, and San Antonio. Collectively, these chambers serve thousands of Texas companies that employ a large portion of the state s workforce. These chambers have focused largely on economic development, mobility and other policies to benefit state and local economies. Online poll of 454 chamber members, conducted February 9-18, 2018 by Research+Data Insights, a national polling firm based in Texas that is part of Hill+Knowlton Strategies, which has offices in Dallas, Austin and Houston. Data weighted to ensure accurate reflection and representation of population size. Hill+Knowlton Strategies 2
3 How business leaders view: The state s economic outlook Barriers affecting business recruitment Regulatory impacts on business climate Texas legislative policies and priorities Federal debate on Immigration and NAFTA Education funding, infrastructure investment and the bathroom bill 3
4 Direction of Texas Economy Chamber members have rosy view of the state s economic outlook. 84% Do you think Texas economy is generally headed in the right direction or wrong direction? 7% Right direction Wrong direction Hill+Knowlton Strategies 4
5 Business Barriers Finding a qualified workforce is seen as the largest obstacle in attracting and retaining large, medium and small private employers. What, if anything, do you think is Texas greatest barrier to attracting and retaining LARGE / SMALL AND MEDIUM private employers? 24% 23% 17% 15% 13% 9% 13% 13% 11% 9% Employment/ labor issues Transportation issues Education/ unfunded schools Government/ political issues/ too conservative High taxes Employment/ labor issues Education/ schools High taxes/ property taxes Economic development/ business/ investments Transportation issues Large Private Employers Small and Medium Private Employers Hill+Knowlton Strategies 5
6 Legislative Priorities Transportation/infrastructure and public/higher education outranked all other issues in what should be the Legislature s main focus. Top legislative priorities for Texas business 61% 55% 42% 41% 40% Transportation and infrastructure Public education/higher education Property taxes Workforce development Access to qualified workforce Hill+Knowlton Strategies 6
7 State Funding Priorities Chamber members rate K-12 education and transportation/infrastructure as two key priority areas for the state. If budget balance was not a concern, which of the following would you prioritize increased spending on? Which of the following would you prioritize increased spending on, even if it resulted in a small tax increase for your business? 36% 29% 28% 32% 16% 7% 6% 14% 7% 5% K-12 Education Transportation Infrastructure (i.e., highways, roads and bridges) Higher Education and Workforce Development Other Infrastructure (i.e., water, electrical grid, band width) Border Security and Law enforcement K-12 Education Transportation Infrastructure (i.e., highways, roads and bridges) Higher Education and Workforce Development Other Infrastructure (i.e., water, electrical grid, band width) Border Security and Law enforcement Hill+Knowlton Strategies 7
8 Public Education Chamber members have little confidence that Texas public K-12 students are prepared for postsecondary education and the workforce after graduating. How confident are you that enough students are graduating through public K-12 education prepared for post-secondary education and the high-performance workplace, providing the kinds of leaders your business needs for future prosperity? 74% 44% Not very Very 15% 14% 11% 30% Confident Neutral/unsure Not confident Not at all Hill+Knowlton Strategies 8
9 Infrastructure Improvements Most say the state is not investing enough to build and maintain transportation infrastructure. 83% Given the increasing population of Texas, do you feel your state government is investing the appropriate amount of funds to build and maintain transportation infrastructure? 11% Yes No Hill+Knowlton Strategies 9
10 Immigration More than 4 in 10 chamber members say the federal debate over immigration is negatively affecting their business. Are the ongoing federal discussions and actions regarding immigration having a positive or negative impact on your business? 44% Very 8% 5% 47% 29% 15% Positive Neutral Negative Very Hill+Knowlton Strategies 10
11 NAFTA Three-quarters say NAFTA has helped Texas businesses overall. Do you think U.S. participation in NAFTA has had a positive or negative impact on Texas businesses overall / your business specifically? Very 77% Texas businesses overall 29% 48% 14% 42% 19% Your business specifically 54% 9% Very 23% 4% 6% Very Positive Neutral Negative Positive Neutral Negative Very Hill+Knowlton Strategies 11
12 Transgender Bathroom Bill Nearly two-thirds of chamber members say the transgender bathroom bill debate has hurt the state s ability to attract and retain employees. Thinking specifically about the employees within your organization, would you say the state discussion about the transgender bathroom bill has had a positive or negative impact on employee perceptions of Texas ability to attract or retain qualified employees for its businesses? 64% 20% 3% 34% 44% Very Positive impact No impact/unsure Negative Impact Hill+Knowlton Strategies 12
13 State Business Regulations Most say state regulations have not made them consider moving from Texas. Those who have thought about it cited religious fundamentalism/bathroom issues and taxes as the reasons. Do state government regulations make you reconsider being located in Texas? 61% [IF CONSIDERING RELOCATING] What are the regulations that make you consider relocating your business? 23% 22% 5% 12% 10% 10% 8% Yes, I am seriously considering relocating my business I have thought about the idea of relocating, but not seriously considering it No, I have never considered relocating due to government regulations Religious fundamentalism/ bathroom issues Taxes Environmental issues Lack of support for education Leadership government Hill+Knowlton Strategies 13
14 Economic Stabilization Fund Most support using the Rainy Day Fund to offset the state s budget shortfalls. As you may know, the state maintains a reserve fund called the Economic Stabilization Fund, also known as the Rainy Day Fund. Faced with potential cuts to the budget, do you support or oppose lawmakers utilizing these funds in times of budget shortfalls? 67% Strongly 40% 27% Support 28% 17% 11% Oppose Hill+Knowlton Strategies 14
15 Funding Infrastructure By large margins, most support public-private partnerships and other means of funding infrastructure issues. Given current state funding meets 80% of requirements to maintain current congestion, do you support publicprivate partnerships as alternatives to help fund transportation infrastructure? 82% 76% Do you support alternatives to fund infrastructure such as toll roads or managed lanes? 45% 35% Strongly 37% 12% 8% Strongly 41% 19% 10% 9% Support Oppose Support Oppose Hill+Knowlton Strategies 15
16 Texas Enterprise Fund A majority support the Texas Enterprise Fund as a means for business development. Do you support or oppose a state fund (currently called the Texas Enterprise Fund) directed by the Governor in partnership with local government dedicated to help retain or expand current companies in your region; recruit corporate headquarters or regional headquarters relocations; and recruit new export-oriented employers to Texas that pay at least 110% of the average country wage? 86% 56% Strongly 30% 5% Support Oppose Hill+Knowlton Strategies 16
17 THANK YOU
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