San Antonio Express-News (Sunday)
With new laws, Texas ‘losing its edge’
When it went into effect Sept. 1, Texas Senate Bill 8 became the most restrictive abortion law in the U.S., again making Texas the focal point in the battle over reproductive rights.
State lawmakers have defended the measure — along with new restrictions on voting rights, mask mandates and immigration — saying the clampdowns are not interfering with commerce.
But Ray Perryman, president of Waco-based economic research firm The Perryman Group, says the controversial legislation could erode the state’s economic prospects and negatively impact economic growth.
“Laws that are less inclusive, whether they make voting more difficult, limit opportunities based on gender identity, restrict access to health care for indigent persons, unreasonably limit flexibility in family planning or misrepresent history in a racially biased manner, pose substantial risk to the Texas economy over an extended period,” he said.
In April, Perryman’s group published a study that found restrictive voter legislation in Texas would decrease Texas business activity by nearly $15 billion by 2025. And he says restrictive laws such as SB 8 pose further risks to the state’s ability to secure high-profile national events.
“Trade associations, major corporate sponsors and sports authorities do not want to be perceived as endorsing policies of this nature,” Perryman said, pointing to the relocation of NCAA events after the passage of North Carolina’s “bathroom bill”
that targeted transgender individuals and major league baseball’s relocation of the 2021 All-Star Game from Atlanta to Denver in response to restrictive Georgia voting laws.
The Perryman Group found that Georgia lost $127.2 million in revenue and 1,619 jobs after the MLB All-Star Game was moved to Denver in April. Perryman estimates North Carolina suffered a loss of $367.6 million and 4,677 jobs over the NCAA’s decision to transplant the men’s basketball Final Four from Greensboro to Indianapolisin 2021. He warns such laws could form the spine of a flight of money and human capital should the state continue to pass regressive measures.
Most high-growth, technology-oriented
firms don’t want to be seen as approving restrictive social legislation, Perryman said, given that highly skilled knowledge workers, already in short supply, are mobile and overwhelmingly prefer locations with more inclusive policies.
“Because of their importance to the growth and viability of these enterprises,” he said, “there is added pressure to consider social phenomena in location decisions. Reproductive rights can be especially important in this context, as they directly affect lives of many young workers and their families.”
Indeed, after SB 8’s passage a number of companies, including Salesforce and MotoRefi, offered relocation compensation for
Texas employees troubled by the new legislation. Leading the way was California-based PR agency Bospar, which announced its relocation program Sept. 9.
“If companies see that it’s not in their best interest to do something from a business point of view, that usually trumps morality,” said Bospar principal Curtis Sparrer. “This was an important moment to show that the business community is not giving a free pass to Texas to make outrageous laws on the decisions women choose to make on their bodies.”
A native Texan, Sparrer said his company will pay for the relocation of its six Texas employees and support its employees in other states if similar
legislation passes there. He hopes other companies will take a similar stand and pressure lawmakers to reconsider.
“What we’re seeing is a steady drumbeat of companies saying ‘We object,’ ” Sparrer said. “I think more businesses are going to come to this decision really soon . ... I have a suspicion that this law is going to fall apart or Texas is going to lose its competitive edge.”
While Perryman does not expect an immediate mass exodus, he sees long-term repercussions from bills like SB 8 slowly chipping away at the state’s economic engine.
“Texas has performed exceedingly well in recent years and has many competitive strengths, but this spate of legislation that restricts human rights and wellbeing cannot help but limit the state’s fortunes in the future,” he said. “They will affect performance over time assuming that they remain in place.”