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OFFICE OF THE GOVERNOR
R i c k P e r r y
For Immediate Distribution Governor’s Press Office: 512-463-1826
July 13, 2010 Allison Castle: Allison.castle@governor.state.tx.us
News Release Katherine Cesinger: kcesinger@governor.state.tx.us
Texas Declared America’s Top State for Business
CNBC Study Ranks Texas as No. 1 Business Climate in the Nation
AUSTIN – Texas is America’s Top State for Business, according to a CNBC study that scored each state based on 40 different measures of competitiveness.
“This designation reinforces the fact that the Lone Star State is the best state in the nation to live, work and raise a family thanks to our low taxes, reasonable and predictable regulations and skilled workforce,” Gov. Perry said. “These policies have helped keep our economy comparatively strong through the national economic downturn, and will continue to make us globally competitive in the future.”
CNBC scored each state using publicly available data to determine the rankings. States received points based on ten broad categories including: cost of doing business, workforce, economy, education, quality of life, technology and innovation, transportation, cost of living, business friendliness, and access to capital.
This ranking adds to the growing list of accolades for Texas’ business climate. No other state is home to more Fortune 500 companies, and Texas is the nation’s leading exporting state for the eighth year in a row. Additionally, Texas was recently named the “Best State to Do Business” by CEO Magazine for the sixth year in a row, and six of Texas’ metro areas were listed as “America’s Recovery Capitals” by Forbes and Moody’s Economy.
Texas created more private sector jobs than any other state in the nation over the last 10 years. Additionally, Texas’ unemployment rate remained steady at 8.3 percent in May, well below the national average.
The complete CNBC study is available on www.topstatesforbusiness.cnbc.com.
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Special to TEP
From Robert Scott, Commissioner of Education
Government officials are experts at adding but they rarely know how to subtract. Law and regulations are constantly added but rarely do we eliminate or reduce any. I think it is time for this to change.
That is why I have announced that I will be reviewing all education regulations known as commissioner rules. These cover a wide range of topics, such as charter school operations, teacher incentive programs, financial accountability ratings systems, various pilot programs and much more.
I am convening a series of stakeholder meetings, so I can gather direct feedback from those affected most. I want to know what rules are obsolete or burdensome or just aren’t needed anymore.
State sunset law requires that any rule by reviewed every four years. This formal process will continue, but I want to conduct an informal review this year. If there are changes or updates that need to be made and that I have the authority to make, I will do so. If those changes require legislative approval, I will present a list of potential changes to the Texas Legislature for review when it next convenes in January 2011.
Please take a look at the commissioner rules located at http://ritter.tea.state.tx.us/rules/home/ and give me your thoughts on how we can improve and simplify our regulations. You can send feedback to commissioner@tea.state.tx.us.
Major Network Providers Have Created Hundreds of Thousands of Jobs
Recently, the Broadband for America (BfA) coalition released a new study that shows the important contributions to the U.S. economy made by private investment in information and communications technology.
The study, which was conducted by Robert W. Crandall and Hal J. Singer — both experts in the economics of the telecommunications industry — shows that the massive investments made in mobile and wired Internet capacity by the major network providers has created hundreds of thousands of jobs over the past six years and the expected capital investment over the next few years “would create approximately 509,000 jobs relative to a world without such investments.”
The authors caution that the explosive growth in broadband access will be severely limited if “new regulatory changes undermine the incentives of broadband service providers to continue to invest.”
Singer and Crandall quote a Pew study showing that broadband access to the Internet was at 47 percent in 2007, but “by the end of 2009, nearly 65 percent of all U.S. households subscribed to broadband.”
Because of the open competition, which has been the hallmark of broadband expansion, the authors write that the data “implies that most U.S. households have a choice of at least three broadband technologies and even more suppliers” in any given service area.
During the worst recession in modern economic history, while “nonresidential private investment declined by 18.1 percent” from 2008 to 2009, “broadband investment declined by only 3.3 percent” but was still $30 billion over that same period.
Crandall and Singer also make the point that there is a difference of opinion regarding from where future innovation will come. They say that the supposition that the most important source of innovation will be “at the edge of the network” is often assumed, but not supported empirically.
“There is a clear track record of job and wealth creation associated with investment in first-generation access technologies, suggesting that investment at the core of the network is equally if not more important.”
Thus, the increases in broadband’s reach, penetration, capabilities, and services which we have seen over the past seven years with a minimum of government interference should be embraced by the Federal Communications Commission (FCC) as it moves through the process of creating a National Broadband Policy.”
The complete study is available here .
Broadband for America (BfA) is a growing coalition of over 180 members ranging from independent consumer advocacy groups, to content and application providers, to the companies which build and maintain the Internet. The complete BfA membership list is available at: http://www.broadbandforamerica.com/about/members.
By MIKE ESTERL / Wall Street Journal
The U.S. airline industry hopes the return of business travelers, who disappeared for much of 2009, will help it claw its way back to profitability. But the era of extensive, expensive corporate travel may be over for good. Read complete article
Special to TEP
By Rep. John Carter
During my time in Congress, I’ve seen many changes (some better than others, but that’s a whole different discussion). One of the biggest changes, though, is the way we communicate with people in our district.
Sure, I can pick up the phone, or even send out an e-mail. But here in my office I’ve placed a new emphasis on using social media to share my thoughts and to connect with people in a more personal way.
The rise of social media — Facebook, Twitter, YouTube — has not replaced anything else I do up here, but has merely enhanced my abilities to reach out to the public, and to let them reach out to me.
Fewer people are turning to the traditional media outlets for their information, and instead are using social media platforms for daily news. That’s why it’s important for me to share what stories and events I feel are pertinent to my constituents.
And with so many important issues taking place today in politics, and with fewer and fewer traditional media outlets around, space is at a premium. When my voice isn’t heard or known, I can go directly to social media and share it with my friends.
Social media isn’t an alternative anymore, it’s a primary way of communicating. And it’s a two-way street. While I can post endlessly on social media, it also lets constituents interact with me, and lets them get a feel of where I’m coming from and what I’m doing on a more personal level.
Special to our TEP Newsletter
The War on Cyber Terror
Cyber Security Column for Texans for Economic Progress
By Congressman Michael McCaul
Last month’s foiled terror plots in Dallas, Chicago and New York are a stark reminder of the threats the United States continues to face eight years after 9/11. Without the successful national security and counter-terrorism policies we have implemented, the latest threats may have come to fruition.
Unfortunately, another kind of terrorism has flown under much of the public’s radar. On any given day, foreign nationals pull virtual moving vans up to the loading docks of government agency buildings, fill them with computers and drive away with sensitive information. America is under attack in cyberspace. But not enough is being done to combat it.
Today’s hackers are no longer thrill-seeking teenagers; they are organized crime syndicates and national militaries that commit espionage. From thousands of miles away, increasingly sophisticated foreign adversaries are electronically infiltrating sensitive U.S. computer networks to obtain military technologies. Foreign competitors and criminals unabashedly steal trade secrets from American companies through similar methods. Critical systems that run our financial, energy, and transportation infrastructures have also become victims of cyber attack and exploitation. One operation discovered a vulnerability in which generators could be destroyed by the mere click of a mouse.
Our national leaders have been far too slow to understand the scope and significance of this threat. America’s laws for cyberspace are decades old. We are not prepared to meet the threats of the 21st century.
When President Obama took office, the non-partisan Commission on Cyber security for the 44th Presidency, which I co-chaired, presented his administration with recommendations to secure cyberspace. Chief among them was creating a National Office for Cyberspace within the White House to provide oversight, clarify agency responsibilities, ensure accountability, and increase transparency and collaboration for the many cyber security programs across multiple agencies.
At the end of May, the President announced the rollout of the Cyberspace Policy Review which was strongly based on our report. While I was pleased to see the President’s initial attention to cyber threats, I am now concerned that his interim cyber coordinator, Melissa Hathaway, resigned in August, and no permanent coordinator has been named.
To date, the authorities and responsibilities of the Cyber Coordinator position remain unclear, and there is a belief within the cyber community that the position has so little authority that it is not attracting top-tier candidates. The most glaring void, which we brought to light in our recommendations, is the fact that there is no central authority in charge.
Last month I sent the President a letter urging him to expedite the appointment of a Cyber security Coordinator and to outline specifically what his or her responsibilities will be. This person should play a central role in coordinating the government’s defense to combat this new breed of terrorist.
The government cannot fight this battle on its own. It will need the cooperation of the private sector, which owns the vast majority of our critical infrastructure. But first the President must do a better job bringing this serious issue to light. Appointing a qualified Cyber Coordinator and defining that role would be a good first step.
In the meantime, the threat is not going away and our infrastructure remains under nearly constant attack. Over the July 4th weekend, the United States sustained a serious denial-of-service attack that is widely believed to have originated in North Korea. It wasn’t a fishing expedition. It was attempted cyber warfare. Attacks in general are becoming more malicious in nature.
No less than our most critical infrastructure is at risk: our air traffic control system, our ports, our utilities and telecommunications. Attacks on such networks could paralyze our nation. And similar to 9-11, people will ask, “Why didn’t you do anything to stop it?”
Congressman McCaul represents the 10th District of Texas and is Ranking Member on the Homeland Security Intelligence Subcommittee.
The Future of Wireless Innovation
U.S. wireless offers a model for the 21st century — powerfully demonstrating what a collaborative approach between consumers, policymakers and a competitive, innovative industry can achieve for the nation.
If you’re interested in learning about the extraordinary potential mobile innovation holds to transform our economy and our lives, don’t miss this report:
http://www.mobilefuture.org/whitepaper
Please feel free to share the paper with your colleagues and friends. This will be an interesting read for anyone who wants to know what’s around the corner for one of America’s most exciting sectors.
We look forward to hearing your questions and comments!
By Allison Remsen, Executive Director Mobile Future
Many criticized the law as creating a “big brother” peering over the shoulders of Internet users, and several actually claimed it was technically not workable. The Socialists even argued that the law violated the notion of separation of powers by creating an extra-judicial organization with powers to punish perpetrators.
In June, France’s highest court found that the law did in fact violate the separation of powers and that it also violated the presumption of innocence because alleged pirates would have their Internet access cut off without being afforded the opportunity to defend themselves.
The court also added one more provocative reason to strike down the law—that denying Internet access to someone was a violation of their human rights.
Certainly access to communications and information enhances quality of life. And, as we’ve recently observed, the Internet can facilitate immediate knowledge of true human rights violations, such as how Twitter was used by protesters in Iran to organize and to report their situations to the world.
However, to conclude that cutting off Internet access is a violation of human rights is simply absurd.
To characterize denial of Internet access a violation of human rights devalues true human rights violations, such as political oppression, illegitimate elections, arbitrary arrest, torture, rape, and genocide.
Finally, it’s more than ironic that France, a country that has provided safe havens for genocidal African dictators and brutal South American strongmen, now considers Internet access to be a basic human right.
Today’s TechByte was written by Tom Giovanetti, president of IPI.
Broadband for All Texans
By Agriculture Commissioner Todd Staples
Broadband service, in a relatively short period of time, has evolved from being a luxury to a necessity many of us couldn’t live without. In fact, according to a Pew Research Center study, 67 percent of non-rural homes nationwide have broadband connections. Conversely, only 46 percent of rural homes have high-speed Internet connectivity. Now, the Texas Department of Agriculture (TDA) has taken the first step toward delivering high-speed connectivity to all Texas communities.
“Broadband connectivity allows communities to attract new businesses and create more jobs. It opens doors to the global economy,” Texas Agriculture Commissioner Todd Staples said. “High-speed Internet access improves educational and healthcare opportunities, and allows rural families to live in the country, but stay connected to the urban world.”
In June, TDA, in coordination with the Public Utility Commission of Texas (PUC), called for proposals to map the state for broadband availability, which will help identify and provide service to areas that lack high-speed Internet access. The mapping initiative and related broadband infrastructure projects will be funded and implemented through federal stimulus dollars. Congress has appropriated $7.2 billion in broadband stimulus funds. USDA and the U.S. Department of Commerce recently announced they are accepting applications for projects expanding broadband service in rural areas and in other unserved or underserved areas.
TDA also has created the Texas Broadband Task Force. The group, which includes private-sector stakeholders and representatives from the Office of the Governor, the Texas Legislature and PUC, will help guide efforts to make broadband services available across the state. The task force will assist TDA and PUC in maximizing broadband programs created through the Broadband Data Improvement Act of 2008 and the American Recovery and Reinvestment Act. Several state agencies will assist the task force in an advisory capacity and provide input to TDA and PUC.
“This new task force is a first step to ensure no Texan gets left behind on the information highway,” Commissioner Staples said. “I thank the members for their leadership and service.”
According to research, 173,000 jobs could be created in Texas through broadband expansion. Expanding high-speed Internet could also enhance and improve healthcare. The same study estimates Texas would save an average of more than $52 million in annual healthcare costs if broadband services are expanded across the state.
Additionally, high-speed connectivity could help prevent population migration from rural communities. When businesses and jobs in rural Texas towns migrate to urban areas, residents of those communities tend to see their choices as limited – stay where there are fewer opportunities or relocate to an urban area. Expanding broadband services to all parts of the state levels the playing field by enabling small businesses and individuals to reach global markets.
For more information about TDA’s broadband initiatives click on the “Broadband for all Texans” link at www.TexasAgriculture.gov.
Comments by Robert Howden, TEP Executive Director
As new broadband services are being introduced, they are giving all Texans not only great new products, but they are also creating more and more competition in the internet and telecommunications sectors.
Consumers realize the benefits of competition as it makes their lives easier and more productive. In many areas of our state, Texans can pick broadband networks from local and national telephone, cable or satellite companies. Texans now have high-speed Internet connections of all kinds at their desktop or on their hand-held wireless devices, which can deliver the world to their fingertips. These choices now exist in Texas because of initiatives from the private business sector.
Our state has led the way in telecommunications regulation which has resulted in the removal of state and local barriers so consumers have a choice when it comes to latest products and services. Many old state regulations have been eliminated or modified which has produced true competition between one or more telecommunications companies in many parts of Texas.
Private investment in broadband in Texas over the last few years has resulted in creating more access to high-speed services and new features for consumers. This private investment towers over what the federal government will ever spend now or in the in the future. The new administration is proposing spending billions on a new broadband plan for the nation as well as Texas, but without private investment dollars, the federal funds will have little do with bridging the gap that private investment can deliver faster and cheaper.
According to many experts, these competitive changes in the telecommunications industry in our state and throughout the United States seem to be working. But now many of these same experts fear that the new administration may be on a path to re-regulate the telecommunications industry all over again, even when prices and services to the consumer are better than ever. Lawmakers and regulators should use caution when adopting laws and regulations that may hinder national broadband deployment.
The new White House administration is currently working to create a new national broadband policy. Our hope is that they look to the successes of Texas and adopt policies that encourage private investment and incubate technology without undue barriers.
Advancements in broadband services in Texas are a result of less government regulation, private investment, and greater competition that gives consumers more choices when it comes to services, equipment and most importantly cost.
Key decision makers in the new administration need only look to Texas as well as other states and realize that competition works.
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