Austin, TX – Senator Paul Bettencourt (R-Houston) released the following statement regarding the American Legislative Exchange Council's Rich States, Poor States: ALEC-Laffer State Economic Competitive Index, a well-known bellwether of State economic performance.

This annual report evaluates the economic competitiveness and outlook of every state in the United States. Texas achieved its highest-ever ranking of sixth in 2024 largely due to the landmark property tax cut, SB2, that was passed in the 88th legislative session by Senator Paul Bettencourt with Lt. Governor Dan Patrick's executive sponsorship.

"Texas leaping up the rankings in ALEC's Rich States, Poor States up to 6th is a testament to a solid continually growing economy, legislative leadership like Lt Governor Patrick committed to economic freedom, and the passage of a record property reduction bill pouring billions of dollars back into taxpayer's pockets." Said Senator Paul Bettencourt, author of SB 2. "It should be noted that Arthur Laffer has long exposed the public policy benefits of homestead exemptions in tax policy, and the public's approval of Prop. 4 means Texas has an eye-popping 100k homestead exemption for school property taxes." He added. "Go to richstatespoorstates.org and see it now!"

The report evaluates 15 economic policy variables to determine Economic Outlook rankings for each state, with these variables proving pivotal to state competitiveness and growth. The data underscores that states benefiting from tax reductions, debt reduction, and the maintenance of free-market policies are more successful in attracting new residents. Rich States, Poor States also feature Economic Performance rankings based on the latest figures for GDP growth, net domestic migration, and non-farm employment growth. For Economic Performance, Texas ranked 6th in the nation. ALEC's press release can be seen attached.

“The great work in Rich States, Poor States is clear evidence that Texas's pursuit of the ALEC principles of free markets and limited government is working." Said Senator Phil King, Texas ALEC Delegation Chair. "This is a great leap up from 13th to 6th." He added.

Senator Bettencourt's bill SB 2, also known as Proposition 4, provided $18.1 billion of property tax reduction in the State of Texas. This is known as the “Texas Two-Step” with a $100,000 homestead exemption and an 18% decrease in M&O property tax rate compression. SB 3, also by Senator Bettencourt doubled the franchise tax exemption, taking 67,000 Texas businesses off the franchise tax roll at the beginning of 2024.

Rich States, Poor States 17th Edition

  ATTACHMENT:   ALEC Press Release on Texas' Economic Outlook

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