Abbott uses Arlington as example of Texas’ strong economy, which could surpass Italy’s

Texas Gov. Greg Abbott lauded Arlington’s economic growth, including $1 billion in new development around the city’s entertainment district, during a speech Wednesday before civic and business leaders.

He also described his vision for building on Texas’ successes in recent years that have made the state’s economy the ninth largest in the world. By 2026, Abbott predicts, Texas will surpass Italy’s GDP, or gross domestic product.

During remarks at the Greater Arlington Chamber of Commerce, Abbott said the city is the centerpiece of not just a premiere location in Texas, but a premiere location around the world when it comes to entertainment. He referenced a Star-Telegram story published last weekend that described projects in the district anchored by AT&T Stadium, Globe Life Field and Six Flags Over Texas.

The nearly $1 billion in new development includes the repurposing of Choctaw Stadium with office space, restaurants and possibly a residential tower, as well as a hotel and convention center, the National Medal of Honor Museum and a luxury apartment high-rise.

Abbott said the greater Arlington area has record unemployment rates around 3.2%, below the state unemployment rate of 3.9%. Abbott described Arlington as a major contributor to the Texas economic juggernaut.

Texas netted more new jobs than any other state in the U.S. last year and has led the country in exports for 21 years, Abbott said. Texas now has an economy of about $2 trillion; if it were a country, Texas would have the ninth largest economy in the world, ahead of Canada, Russia and Australia.

Abbott said he believes Texas will jump to No. 8, surpassing Italy, by 2026.

Same opportunity for economic prosperity

Beyond looking at the numbers, Abbott emphasized the importance of equal access to Texas’ economic success.

“It’s an even better thing to make sure that everybody’s having the opportunity to enjoy the prosperity that goes along with it,” Abbott said. “Texas ranks No. 1 in the United States for the most jobs created by Black business owners, No. 1 in the United States for most jobs created by Hispanic women business owners, No. 1 for most jobs created by veteran women business owners. It doesn’t matter where you are or what you come from, Texas is the land of opportunity, where everybody in every time of background can succeed.”

He said the state needs tools and incentives for economic development.

“The elephant in the room is Chapter 313,” Abbott said, referring to the Texas Economic Development Act, which was controversial for giving corporations discounts on local school property taxes. Lawmakers decided to let the incentive expire at the end of 2021, despite supporters saying it had helped lure industries and major manufacturers including Tesla and Samsung Electronics Co.

“Chapter 313 is gone and, that said, there is a desire in the Capitol to make sure Texas does remain No. 1 for economic development,” Abbott said.

He said state leaders are working on creating economic development tools in the future that may not exactly replicate Chapter 313.

Skyrocketing property taxes

The Texas House and Senate have proposed budgets with $15 billion of the state’s surplus going toward property tax relief, which Abbott described as a record amount.

“Because it’s already in the base budgets of both the House and Senate, it’s a virtual certainty that at least that much will be in there,” Abbott said.

School property taxes make up the largest component of Texans’ property tax bills, he said. His long-term vision is to put money into the state’s property tax reduction fund every session. As the fund builds, Abbott said, he wants to see the money buy down the school component of property taxes so it is completely eliminated.

“So you’ll still have your local property taxes, but with the school property tax eliminated, your property tax bill will be cut like in two-thirds or three-fourths.”

Abbott said the state of Texas will increasingly be responsible for more payments for public education each session.

“I want to see lasting property tax relief,” Abbott said.

The governor also said he and other state leaders are seeking to create specialized courts with expertise in business litigation. Delaware has a similar court system.

A nearly $100 billion plan to improve transportation infrastructure across the state will be announced soon, Abbott said. A spokesperson confirmed this will be part of the Unified Transportation Program, the Texas Department of Transportation’s 10-year plan guiding transportation development across the state.

The funding will include “major projects” on Interstates 30, 35, 20, 820 and 635.

Abbott also promised the state would improve its power grid, which has been strained by growth.

“During this term in office, we will add enough power to power an additional 1 million homes in the state of Texas,” Abbott said. “The increased power will be there, but, most importantly, the power that will be there is going to be more reliable than ever before.”