Infrastructure crisis sends Texas plunging down top states for business list

For years, Texas was the perfect place to build businesses or relocate businesses, but the Covid pandemic has plunged the state into sixth place, CNBC reported Tuesday.

According to CNBC’s America’s Top States for Business, the rankings had the Lone Star State at the top in 2008, 2010, 2012 and 2018. This year, for the first time since the study began, Texas crashed. It now sits behind Minnesota.

On top is North Carolina, followed by Virginia, Tennessee, Georgia, Minnesota and then Texas. The last states include West Virginia, Hawaii, Mississippi, Louisiana and Alaska at 50th.

"While Texas often touts savings, including no state income or corporate tax, it is far from the least expensive place to live, or do business in. With high wages and rising rents, the state declines to No. 16 in Cost of Doing Business from No. 12 in 2022," CNBC explained. "Higher housing costs drop the state to No. 22 for Cost of Living, compared to No. 14 last year."

The report explained that there are a number of things that Texas is still good at, like access to business capital, and it is second in a well-educated workforce to North Carolina.

"But for all of Texas’ strengths, serious problems are worsening in other areas measured by the CNBC study. That includes Infrastructure, the second-most important category under this year’s methodology," the report explained. "Texas falls to No. 24 in the category this year, from No. 15 in 2022."

Atop the concerns were the massive power outages in 2021 that persisted even into this year as a heatwave hit the southern United States.

"At a time when advanced manufacturing companies are prioritizing reliable power, Texans are enduring nearly 20 hours without electricity per year. That is the third-worst in the nation, according to Energy Department data," the report explained.

Texas has its own power grid and doesn't hook into the national grid. So, other states using less energy can't help as Texas falters. "The Texas Tribune" revealed, if it were not for solar power and wind, the heatwave power outages would be far worse.

Meanwhile, Texas is dealing with another infrastructure crisis with $61 billion in water utility repairs that need to be done in the next 20 years, the EPA said in its report. It's second only to California. Both of the state's U.S. Senators voted against the infrastructure package that will deliver considerable funds to help Texas with the task.

As for education, Texas dropped to 35th in the nation from 21st in 2022.

"Per-pupil spending is among the nation’s lowest, according to the National Education Association. K-12 test scores are lagging, according to U.S. Department of Education data," the report said.

But the place in which Texas ranks at the bottom is the quality of life, health and inclusion. It dropped from 49th in 2022 to 50th.

"Health care in the state is poor, according to the United Health Foundation, which ranks the state No. 50 for clinical care, and No. 47 for access to primary care physicians. No state has a greater percentage of residents without health insurance. Violent crime is on the rise, jumping roughly 10 percent between 2018 and 2021," CNBC reported citing FBI statistics.

After legislation that declared gender-affirming healthcare child abuse, families had to seek life in safer states. The report cites the parents of one transgender son that were forced to move to Maryland out of fear Child Protective Services would begin investigating them.

Read the full report at CNBC here.