For Texas to be the best place to live, work, and do business, we need to understand how we are doing today. The Strategic Framework measures Texas' performance against all 49 states and also compares Texas to a competitive peer state group consisting of California, Colorado, Florida, Georgia, Illinois, New York, North Carolina, Ohio, Pennsylvania, Virginia, and Washington.
We identified these Peer States through an index of 15 metrics across three key categories:
- Which states are our primary competitors for business?
- Which states are our primary competitors for talent?
- Which states are similar in size to Texas?
Based on annual percent change in Real Gross Domestic Product (GDP). U.S. Bureau of Economic Analysis, Gross Domestic Product by State, Table 1. Percent Change in Real Gross Domestic Product by State, Third Quarter 2019. https://www.bea.gov/data/gdp/gdp-state.
Ranking of the 500 largest companies in the U.S. based on revenue. Fortune 500, 2019. https://fortune.com/fortune500/.
Ranking of the 5,000 fastest-growing privately-held companies in the U.S. based on percentage revenue growth from 2015 to 2018. Inc. 5000, 2019. https://www.inc.com/inc5000/2019/top-private-companies-2019-inc5000.html
Small businesses defined as firms with less than 500 employees. U.S. Small Business Administration, State Rankings by Small Business Economic Indicators: 50 states and DC, Number of New Establishments, 2018. https://www.sba.gov/advocacy/2018-small-business-profiles-states-and-territories.
Includes equity financings into emerging private companies by venture capital firms, corporate venture groups, and angel investors, based on summing amounts for Q1, Q2, Q3, and Q4 in 2019. PwC/CB Insights MoneyTree Report, Regional Aggregate Data, Investments by State, 2019. https://www.pwc.com/us/en/industries/technology/moneytree.html.
Selected index includes Forbes "Best States for Business", which ranks states on 41 metrics across six categories: business costs, labor supply, regulatory environment, economic climate, growth prospects, and quality of life; Forbes Best States for Business, 2019. https://www.forbes.com/best. states-for-business/list/.
Selected index includes Information Technology & Innovation Foundation (ITIF) State New Economy Index, which ranks states on 25 metrics across five categories: knowledge jobs, globalization, economic dynamism, digital economy, innovation capacity. Information Technology & Innovation Foundation (ITIF) State New Economy Index, 2017. https://itif.org/publications/2017/11/06/2017-state-new-economy-index.
Based on percent change in population age 25 to 64 from 2016 to 2018. 2018 American Community Survey 1-Year Estimates, Annual Estimates of Resident Population by Sex, Age, Race, and Hispanic Origin for the United States and States. https://data.census.gov/cedsci/.
Based on net domestic migration gain, calculated as total gain in population from other States minus total loss in population to other States for people who lived in a different residence a year ago. 2018 American Community Survey 1-Year Estimates, State-to-State Migration Flows, Table 1. Current State of Residence with Different State of Residence 1 Year Ago. https://www.census.gov/data/tables/time-series/demo/geographic-mobility/state-to-state-migration.html.
Based on Quality of Life ranking. Forbes "Best States for Business", 2019. https://www.forbes.com/best-states-for-business/list/
Based on real per capita income and real per capita income growth, with income adjusted for differences in cost of living based on regional price parities and inflation. U.S. Bureau of Economic Analysis, Real Personal Income for States, 2017, Table 2. Real Per Capita Personal Income by State, 2016-2017. https://www.bea.gov/data/income-saving/real-personal-income-states-and.metropolitan-areas.
Based on Current Dollar Gross Domestic Product (GDP). U.S. Bureau of Economic Analysis, Gross Domestic Product by State, Third Quarter 2019, Table 3. Current-Dollar Gross Domestic Product by State, Third Quarter 2019. https://www.bea.gov/data/gdp/gdp-state.
U.S Census Bureau, National and State Population Estimates, 2019. https://www.census.gov/data/tables/time-series/demo/popest/2010s-state.total.html
Based on number of Metropolitan Statistical Areas (MSAs) with populations greater than 200,000. U.S. Census Bureau, Metropolitan and Micropolitan Statistical Area Population totals, 2018. https://www.census.gov/data/tables/time-series/demo/popest/2010s-total-metro-and-micro.statistical-areas.html.
Overall rank calculated as unweighted average of scores for three categories:Competing for Business (based on unweighted average of rankings on seven factors), Competing for Talent (based on unweighted average of rankings on five factors), and Similar Size (based on unweighted average of rankings on three factors).
Based on sum of 2019 population estimates for selected Peer States (Texas, California, Colorado, Florida, Georgia, Illinois, New York, North Carolina, Pennsylvania, Ohio, Virginia, and Washington). U.S Census Bureau, National and State Population Estimates, 2019. https://www.census.gov/data/tables/time-series/demo/popest/2010s-state-total.html.
Based on sum of Q3 2019 Current Dollar GDP for selected Peer States (Texas, California, Colorado, Florida, Georgia, Illinois, New York, North Carolina, Pennsylvania, Ohio, Virginia, and Washington). U.S. Bureau of Economic Analysis, Gross Domestic Product by State, Third Quarter 2019, Table 3. Current-Dollar Gross Domestic Product by State, Third Quarter 2019. https://www.bea.gov/data/gdp/gdp-state.
We have also based many of the Strategic Framework targets on where we believe Texans want to be relative to our peers in the future. Throughout the report, where the data is available, we have included benchmarks that indicate where Texas currently ranks among these peers.
We believe there is a significant opportunity for Texas and its Peer States to partner on collecting and disseminating data, and to convene for discussions about common challenges and innovative policies and practices. These actions will allow all states and the nation to move forward on these important goals.