FALL 2023 Dealers’ Choice Pub 64 | 2023-24 | Issue 1 2023 TADA BOARD MEETING OFFICIAL PUBLICATION OF THE TEXAS AUTOMOBILE DEALERS ASSOCIATION TEXAS EMPLOYMENT REACHED HISTORIC HIGHS IN AUGUST TEXAS AUTOMOBILE DEALERS CARING FOR THE COMMUNITY
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Scan this code with your smart phone for a direct link to the TADA website. Contents © 2023 Texas Automobile Dealers Association (TADA) | The newsLINK Group, LLC. All rights reserved. Dealers’ Choice is published four times each year by The newsLINK Group, LLC for the TADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the TADA, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Dealers’ Choice is a collective work, and as such, some articles are submitted by authors who are independent of the TADA. While Texas Automobile Dealers encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855-747-4003. 8 Dealers’ Choice 16 42 6 President’s Message Advocating for Texas Dealers in Washington, D.C. BY DARREN WHITEHURST 8 2023 TADA Board Meeting 10 Governor Abbott Appoints Four To Texas Department of Motor Vehicles 12 Texas Employment Reached Historic Highs in August 16 El Paso Dealer Gives Back With a $25 Million Donation To Fight Cancer 18 Koepp Chevrolet Earns Award for 100 Years in Business 20 Texas Occupational Projections 22 2023 TADA Leadership and District Directors 27 September 2023 Fiscal Notes 42 Community Service 50 Affordable Payments Are More Important Than Ever BY DAVID ENGLEMAN, CEO, SMARTPAY 52 Dealership Facility Design Adapts to Shifts in Auto Retailing BY JASON W. SMITH, HEAD OF TRUIST DEALER SERVICES, AND JOE PELLA, HEAD OF NATIONAL COMMERCIAL REAL ESTATE AT TRUIST. WRITTEN IN PARTNERSHIP WITH RYAN STANCILL, PRINCIPAL AT PRAXIS3 ARCHITECTURE DESIGN FIRM. DEALERS’ CHOICE 4
Running a dealership comes with its share of uncertain terrain. But one thing is certain. Our Dealer Financial Services team is dedicated to being by your side with the resources, solutions and vision to see you through. Tony Andrews tony.andrews@bofa.com 734.945.1729 Terri Sapp terri.sapp@bofa.com 214.209.4280 business.bofa.com/dealer Making business easier for auto dealers. Especially now. David Rowley david.rowley@bofa.com 214.209.4286 “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: | Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value | ©2022 Bank of America Corporation. All rights reserved. 4826555 08-22-0145
PRESIDENT’S MESSAGE ADVOCATING FOR TEXAS DEALERS IN WASHINGTON, D.C. By Darren Whitehurst, TADA President I am writing this on my flight back from the 2023 NADA National Advocacy Conference in Washington, D.C. Several members of TADA, metro executives and Texas dealers spent a couple of days there working on federal issues impacting dealerships. We visited with members of our Congressional delegation about these challenges and the involvement of Texas franchised dealers in their local communities. I wish I had better news to report, but the issues are extremely concerning. We focused on three in particular. The first is a proposed rule by the Federal Trade Commission (FTC) known as the “Vehicle Shopping Rule,” which would overwhelm car buyers and dealerships with additional paperwork and needlessly lengthen the sales process. The rule was proposed without credible, data-driven or public comment. The proposed rule has negative, unintended consequences for consumers and small businesses. In our meetings, we asked Congressional members to sign onto legislation that would require the FTC to go through the normal rule-making processes so that consumers and dealers would have ample opportunity to engage in the process. The second issue is the Environmental Protection Agency (EPA) recently proposed new emissions standards that would effectively require 67.5% of U.S. car sales to be electric by 2032. U.S. dealers have already invested more than $5 billion on EV tools, equipment, training and recharging infrastructure. The current EPA rules ignore numerous important issues — most of the minerals needed to produce EV batteries are owned by China, the needed infrastructure does not exist and, most importantly, the consumer demand is simply not there. A single national standard for achievable greenhouse gas regulations that leverage consumer demand is needed and stops the federal government from attempting to ban the sale of gas-powered vehicles. We asked Congressional members to support language to prevent EPA from spending money to finalize this unachievable mandate. Currently, the language we want is included in the House Appropriations bill. The third and final issue we focused on is allowing businesses who use last-in, first-out (LIFO) accounting an extended time to replace inventory if a major interruption makes replacement difficult or impossible. Although we believe the Treasury Department currently has the authority, it has declined to act as they believe additional legislative authority is needed. We asked members to co-sponsor legislation filed by Texas Congressman Jodey Arrington, directing the Treasury Department to take action. I witnessed first-hand the relationships that our dealers have with their local members of Congress. All of them, of course, knew Roger Williams, our dealer Congressman from Weatherford, and he was supportive of all our endeavors. It was inspiring to see so many of our TADA leaders engaging in their personal relationships on behalf of all members of TADA — for example, the personal relationship that Charlie Gilchrist has with Democrat Mark Veasey, the one that Tony Pack has with Beth Van Duyne and the one that Annette Sykora shares with Jodey Arrington. Their connections, and so many others, transcend politics. It was great to experience the friendships and desire to help their local dealer because they know how important Texas dealers are to their community and our state economy. I want to encourage you all to build these same types of relationships with your State Legislators and Congressional delegation. TADA supports legislators who support their local Texas dealers, regardless of their political affiliation. It is these personal relationships that result in our successes in the Texas Legislature and Congress. Thank you for being such an integral part of all our work! TADA supports legislators who support their local Texas dealers, regardless of their political affiliation. DEALERS’ CHOICE 6
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2023 TADA Board Meeting The Montage Palmetto Bluff Bluffton, South Carolina September 24-25 DEALERS’ CHOICE 8
9 DEALERS’ CHOICE
GOVERNOR ABBOTT APPOINTS FOUR TO TEXAS DEPARTMENT OF MOTOR VEHICLES If you have any questions regarding this announcement, please contact the Governor’s Press Office at (512) 463-1826. Governor Greg Abbott has appointed Darren Schlosser to the Texas Department of Motor Vehicles Board for a term set to expire on Feb. 1, 2027. Additionally, he has reappointed John M. Prewitt, Paul R. Scott and Brett H. Graham for terms set to expire on Feb. 1, 2029. The Texas Department of Motor Vehicles serves, protects and advances citizens and industries in the state with quality motor vehicle related services. Darren Schlosser of Rosharon is the Sergeant of the Auto Theft Division — Vehicle Fraud Unit at the Houston Police Department. He is a member of the Texas Association of Auto Theft Investigators and the International Association of Auto Theft Investigators. Additionally, he teaches law enforcement and industry stakeholders across the nation about vehicle finance fraud. Schlosser received an Associate of Applied Science in Computer Drafting from San Jacinto College. John M. Prewitt of Cypress is President of Tideport Distributing, Inc. in The Woodlands. He is a past board member of Austin Jaycees and past Vice Chairman of finance of the Arrowmoon District of the Boy Scouts of America. Prewitt received a Bachelor of Science in Economics from Oklahoma State University and a Master of Business Administration from The University of Texas at Austin. Paul R. Scott of Lubbock is President and CEO of Fiesta Motors-Fiesta Acceptance. He is a member of the Texas Independent Auto Dealers Association (TIADA) and a former member of the TIADA Board of Directors. Additionally, he is the Former Chair of the Leadership Giving Committee for Lubbock United Way and former missions leader of Lakeridge United Methodist Church. Scott is a veteran of the United States Army and has more than 44 years of experience in the franchise and independent automotive retail industry. Brett H. Graham of Denison is the owner and CEO of Graham International and Graham Truck Centers. He serves as a board member of the Texas Association of Business, Ameristate Bank, AMBEST Service Centers and Grayson Central Appraisal District. Additionally, he is a member of the Texas Automobile Dealers Association and the Texas Tire Dealers Association. Graham received a Bachelor of Business Administration in Marketing and Real Estate from Baylor University. DEALERS’ CHOICE 10
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Texas Employment Reached Historic Highs in August After continued growth through the month of August, Texas has once again set new records for the number of jobs, number of people employed, and size of the civilian labor force. Total nonfarm employment increased by 16,700 positions over the month to reach a 23rd consecutive series-high level with 13,979,100 jobs and a 30th consecutive month of growth. Since August 2022, Lone Star State employment grew by 402,000 positions and continued to outpace the nation in the rate of annual employment growth. The number of employed persons grew by another 24,300 people over the month, raising the new record high to 14,489,000. The Texas seasonally adjusted civilian labor force grew over the month by another 33,500 people, raising the total to 15,111,900 and marking another record high for the state. The seasonally adjusted unemployment rate held at 4.1 percent in August, marking the fourth month at that rate. “After 30 straight months of job growth, the number of employed Texans has reached more than 14.4 million,” said TWC Chairman Bryan Daniel. “TWC supports the state’s continued economic growth through programs like Jobs and Education for Texans and the Skills Development Fund, that help upskill the Texas workforce to meet employer demand.” Leisure and Hospitality saw significant growth over the month, with 9,100 jobs added. Another 5,000 jobs were added in Other Services, while Financial Activities gained 3,300 positions. Over the year, the job market grew faster in Texas than in the U.S. in industries such as Mining and Logging and Financial Activities, which outpaced national growth rates by 3.9 and 3.0 percentage points, respectively. Other Services also grew 2.7 points faster in Texas than nationally over the year. “Our world-class Texas workforce has grown by more than 400,000 jobs over the last year, thanks largely to the energizing job creation by our private-sector employers,” said TWC Commissioner Representing Employers Aaron Demerson. “This continued growth highlights TWC’s unwavering commitment to fostering collaboration and building partnerships with Texas employers across the state.” The Midland Metropolitan Statistical Area (MSA) maintained the lowest unemployment rate among Texas MSAs with a not seasonally adjusted rate of 2.8 percent in August, followed by Amarillo at 3.6 percent, College Station-Bryan at 3.8 percent, and Odessa at 3.8 percent. Abilene, Austin-Round Rock, and Lubbock were each at 3.9 percent through August. The Midland MSA civilian labor force grew the fastest in the state at 5.5 percent in August. The civilian labor force in Dallas-Fort Worth grew by 4.6 percent, adding more than 195,000 people and representing 40 percent of all MSA growth over-the-year. “We continue to strengthen the Texas civilian labor force with career pathways through apprenticeship, internship and second chance hiring,” said TWC Commissioner Representing Labor Alberto Treviño III. “TWC empowers economic growth with services such as quality child care and early learning, technical training, vocational rehabilitation, and job finding resources.” Employment estimates released by TWC are produced in cooperation with the U.S. Department of Labor’s Bureau of Labor Statistics. All estimates are subject to revision. To access this and more employment data, visit TexasLMI.com. Texas Workforce Commission is a state agency dedicated to helping Texas employers, workers, and communities prosper economically. For details on TWC and its services in coordination with its local workforce development boards network, call (800) 628-5115 or visit twc.texas.gov. DEALERS’ CHOICE 12
Civilian Labor Force Estimates for Texas Metropolitan Statistical Areas Not Seasonally Adjusted (In Thousands) August 2023 July 2023 August 2022 C.L.F. Emp. Unemp. Rate C.L.F. Emp. Unemp. Rate C.L.F. Emp. Unemp. Rate United States 168,049.0 161,427.0 6,623.0 3.9 168,354.0 161,982.0 6,372.0 3.8 164,971.0 158,714.0 6,256.0 3.8 Texas 15,188.5 14,502.9 685.6 4.5 15,180.3 14,497.2 683.0 4.5 14,674.2 14,094.9 579.4 3.9 Abilene 83.0 79.7 3.3 3.9 83.1 79.9 3.3 4.0 81.1 78.3 2.8 3.5 Amarillo 137.0 132.1 4.9 3.6 137.4 132.5 4.9 3.6 135.1 131.0 4.1 3.0 Austin- Round Rock 1,453.9 1,397.4 56.5 3.9 1,454.3 1,398.8 55.5 3.8 1,402.8 1,361.7 41.1 2.9 Beaumont- Port Arthur 171.0 159.6 11.4 6.7 171.1 159.5 11.5 6.7 164.9 154.9 10.0 6.1 BrownsvilleHarlingen 182.6 171.7 10.9 6.0 180.8 169.7 11.1 6.1 178.1 168.1 10.0 5.6 College StationBryan 145.9 140.4 5.5 3.8 147.3 141.7 5.6 3.8 141.0 136.3 4.7 3.3 Corpus Christi 206.0 195.7 10.3 5.0 207.0 196.7 10.3 5.0 202.3 192.3 10.0 4.9 Dallas-Fort Worth-Arlington 4,466.4 4,279.6 186.8 4.2 4,459.9 4,274.9 185.0 4.1 4,270.6 4,117.2 153.4 3.6 Dallas-PlanoIrving MD 3,028.7 2,901.9 126.8 4.2 3,021.5 2,896.1 125.4 4.2 2,893.5 2,790.6 102.9 3.6 Fort WorthArlington MD 1,437.7 1,377.7 60.0 4.2 1,438.4 1,378.9 59.6 4.1 1,377.1 1,326.6 50.5 3.7 El Paso 381.2 361.5 19.7 5.2 382.2 362.6 19.6 5.1 371.7 355.9 15.8 4.3 Houston- The WoodlandsSugar Land 3,634.8 3,458.2 176.7 4.9 3,624.9 3,450.5 174.4 4.8 3,512.0 3,361.1 150.9 4.3 Killeen-Temple 187.1 177.8 9.3 5.0 188.0 178.7 9.3 5.0 182.6 174.4 8.2 4.5 Laredo 119.5 114.2 5.3 4.4 119.3 113.8 5.5 4.6 117.0 112.5 4.5 3.9 Longview 99.8 95.1 4.8 4.8 99.7 95.1 4.7 4.7 96.7 92.5 4.2 4.3 Lubbock 171.3 164.7 6.6 3.9 171.7 164.7 7.0 4.1 168.0 162.1 5.9 3.5 McAllenEdinburg-Mission 383.3 357.1 26.2 6.8 382.1 355.3 26.8 7.0 370.7 346.0 24.7 6.7 Midland 115.8 112.6 3.3 2.8 115.7 112.4 3.3 2.8 109.8 106.7 3.1 2.8 Odessa 86.6 83.3 3.3 3.8 86.6 83.3 3.3 3.8 83.4 80.3 3.1 3.7 San Angelo 57.4 55.1 2.3 4.1 57.7 55.4 2.3 4.1 56.1 54.2 1.9 3.4 San Antonio-New Braunfels 1,289.8 1,234.7 55.1 4.3 1,291.3 1,236.5 54.8 4.2 1,250.4 1,203.8 46.6 3.7 Sherman-Denison 68.0 65.0 2.9 4.3 67.9 65.0 2.9 4.3 65.9 63.5 2.5 3.8 Texarkana 63.4 60.8 2.7 4.2 64.0 61.2 2.8 4.3 62.3 59.5 2.8 4.5 Tyler 114.0 109.2 4.9 4.3 114.1 109.3 4.9 4.3 112.0 107.8 4.2 3.8 Victoria 45.4 43.4 2.1 4.5 45.5 43.5 2.1 4.5 44.2 42.4 1.8 4.2 Waco 138.4 132.7 5.7 4.1 138.8 133.0 5.8 4.2 134.0 129.1 4.9 3.6 Wichita Falls 65.1 62.2 2.9 4.4 65.3 62.3 2.9 4.5 64.0 61.4 2.5 4.0 13 DEALERS’ CHOICE
INDUSTRY TITLE Aug. 2023 Jul. 2023 Aug. 2022 Jul. '23 to Aug. '23 Aug. '22 to Aug. '23 Absolute Change Percent Change Absolute Change Percent Change Total Nonagricultural 13,979,100 13,962,400 13,577,100 16,700 0.1 402,000 3.0 Total Private 11,919,500 11,914,900 11,572,800 4,600 0.0 346,700 3.0 Goods Producing 1,999,600 1,994,700 1,928,900 4,900 0.2 70,700 3.7 Mining and Logging 222,300 221,400 203,900 900 0.4 18,400 9.0 Construction 812,000 810,600 790,900 1,400 0.2 21,100 2.7 Manufacturing 965,300 962,700 934,100 2,600 0.3 31,200 3.3 Service Providing 11,979,500 11,967,700 11,648,200 11,800 0.1 331,300 2.8 Trade, Transportation, and Utilities 2,780,700 2,784,800 2,730,000 -4,100 -0.1 50,700 1.9 Information 239,800 242,400 234,300 -2,600 -1.1 5,500 2.3 Financial Activities 922,600 919,300 887,000 3,300 0.4 35,600 4.0 Professional and Business Services 2,130,400 2,134,100 2,104,800 -3,700 -0.2 25,600 1.2 Education and Health Services 1,893,900 1,901,200 1,813,800 -7,300 -0.4 80,100 4.4 Leisure and Hospitality 1,475,500 1,466,400 1,421,600 9,100 0.6 53,900 3.8 Other Services 477,000 472,000 452,400 5,000 1.1 24,600 5.4 Government 2,059,600 2,047,500 2,004,300 12,100 0.6 55,300 2.8 Texas Nonagricultural Wage and Salary Employment Seasonally Adjusted Contact us today to place your announcement ad Call 801-676-9722 Or scan the qr code to fill out the form. Who to congratulate , who to acknowledge , and who to thank for a job well done. Employees are motivated when they are recognized and feel valued. The Dealers’ Choice magazine is a great platform to celebrate your team's accomplishments! DEALERS’ CHOICE 14
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EL PASO DEALER GIVES BACK WITH A $25 MILLION DONATION TO FIGHT CANCER Steve Fox, President and CEO of Fox Auto Group, was diagnosed with stage 4 tongue and throat cancer more than 20 years ago. He spent countless hours traveling back and forth to the other side of the state to get the treatment he needed. “I made a vow that if God permitted me to survive, I would spend the rest of my life helping others who followed me with cancer,” he recalled. And that is exactly what he did. On Aug. 8, 2023, Steve, his wife, Nancy, and their daughters Paige and Ashley announced a historic $25 million investment that will support a future comprehensive cancer center to be constructed on the Texas Tech University Health Sciences Center (TTUHSC) El Paso campus. The generous gift, along with the $65 million appropriation that the Texas Legislature approved in the 2024-25 state budget will help in planning and building the center, which will be known as the Steve and Nancy Fox Cancer Center. The 90,000-squarefoot facility is projected to begin next summer, possibly opening in the next two to three years. “When you have the diagnosis of cancer, what you want is the best possible outcome, which is to be cured,” Steve said. “You know in your mind, in your DEALERS’ CHOICE 16
heart, that often times the best treatment option is not in El Paso. You end up having to travel, which is very difficult. Sometimes your work doesn’t allow you to go. You have a wife at home with small children. It compounds the stress of fighting cancer. What you want to know is that you’re receiving world-class care. We’re working on that with the new cancer center in El Paso, and I’m optimistic that we’ll deliver, for the vast majority of cancer patients, world-class care. I truly believe that.” Steve has relentlessly advocated for comprehensive cancer care in his community. He’s served on the board of the Rio Grande Cancer Foundation and MD Anderson’s Board of Visitors and Advance Team. According to a press release, the new cancer center will consolidate outpatient services such as cancer imaging, treatment, research and clinical trials, and outreach programs under one umbrella. By establishing a comprehensive cancer treatment center, patient outcomes will be better as this level of specialized care is currently unavailable in the area. Additionally, it will allow more people in the El Paso region to receive many types of cancer treatments at home rather than traveling far and difficult distances. Traveling out of town for cancer treatments is physically and mentally taxing, making the battle against cancer more challenging. According to the National Cancer Institute, Hispanics have higher rates of cancer with an annual average of 395 cancer cases per 100,000 — the state of Texas averages 346 cases per 100,000. With El Paso having an 83% Hispanic population, addressing healthcare disparities in this area is critical, particularly when it comes to research. To learn more about Steve Fox, his family and the generous donation, please scan the QR code. https://www.youtube.com/ watch?v=AEsCcmVZg0w “When you have the diagnosis of cancer, what you want is the best possible outcome, which is to be cured …” Help Your Employees Make it Home Safe Today Federated DriveSAFESM Telematics helps your employees improve their daily driving habits and return home safe at the end of the day. Commercial Insurance Property & Casualty | Life & Disability Income Workers Compensation | Business Succession and Estate Planning | Bonding Federated Mutual Insurance Company and its subsidiaries** | federatedinsurance.com *View A.M. Best Rating Guide information at www.ambest.com. **Not licensed in all states. 23.01 Ed. 8/23 © 2022 Federated Mutual Insurance Company Please Make It Home Safe Today. Scan to learn more about DriveSAFE TELEMATICS. The content of this publication is for general information purposes only. Consult with a qualified professional when you have detailed questions regarding any topic in this publication. 17 DEALERS’ CHOICE
Ewald Otto Koepp started Koepp Chevrolet 100 years ago at the age of 23. The son of a German immigrant and farmer, he began the business as a repair facility and tire store with a single gas pump. Soon he started selling Model Ts and Essex as an associate dealer for a dealership in Floresville. He became an official Chevrolet dealer himself in the late 1920s. His son, Ewald Koepp, Jr., took over the business in the 1960s, and Dwight Koepp, his grandson, after him in the 1990s. This past July, Koepp Chevrolet was presented with the Texas Historical Commission’s Texas Treasures Business Award by local Representative Ryan Guillen. Alongside Representative Guillen, attendees included representatives from TADA (including Darren Whitehurst), Chevrolet, GMF; the county commissioner, county judge; and the local Chamber of Commerce as well as the local news stations. Koepp Chevrolet Earns Award for 100 Years in Business DEALERS’ CHOICE 18
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Labor Market Information TEXAS 0% 10% 20% 30% 40% 50% 60% Data Scientists and Mathematical Science Occupations, All Other Computer Numerically Controlled Tool Programmers Ushers, Lobby Attendants, and Ticket Takers Occupational Therapy Assistants Information Security Analysts Roustabouts, Oil and Gas Nurse Practitioners Animal Caretakers Cooks, Restaurant Logisticians Fastest Growing Occupations 2020-2030 Fastest Growing Occupations 2020-2030 TEXAS OCCUPATIONAL PROJECTIONS $0K $10K $20K $30K $40K $50K $60K $70K $80K Calibration and Engineering Technologists and Techs. Web Developers and Digital Interface Designers Preschool Teachers, Except Special Education Veterinary Technologists and Technicians Computer Network Support Specialists Paralegals and Legal Assistants Architectural and Civil Drafters Radiologic Technologists Respiratory Therapists Dental Hygienists Largest Associate Degree Occupations Ranked by 2030 Employment with 2022 Average Wages Sum of Avg. Wage 2022 and AVG(0) for each Occ. Titles. For pane AVG(0): The marks are labeled by Occ. Titles. The data is filtered on Area, which keeps 48. Largest Associate Degree Occupations Ranked by 2030 Employment with 2022 Average Wage $0K $10K $20K $30K $40K $50K $60K $70K $80K $90K $100K $110K Project Mgmt. & Business Op. Specialists Software Developers & QA Analysts General and Operations Managers Elementary School Teachers Secondary School Teachers Accountants and Auditors Middle School Teachers Construction Managers Substitute Teachers Registered Nurses Largest Bachelors Degree Occupations Ranked by 2030 Employment with 2022 Average Wages Largest Bachelor Degree Occupations Ranked by 2030 Employment with 2022 Average Wage Available at https://texaslmi.com/Home/PopularDownloads Occupations Adding the Most Jobs 2020-2030 Fast Food & Counter Workers 101,786 Cooks, Restaurant 67,484 Waiters & Waitresses 56,771 General & Operations Managers 51,641 Retail Salespersons 50,286 Software Developers & QA Testers 45,661 Heavy & Tractor-Trailer Truck Drivers 45,329 Stockers & Order Fillers 40,859 Laborers & Freight/Material Movers 39,909 Registered Nurses 37,731 2020-2030 Employment Growth Texas 18.3% United States 7.7% Annual 2022 OES Wages 25th Pct Avg 75th Pct Texas $29,718 $57,300 $65,463 United States $33,330 $61,900 $73,460 Texas 2020 Occupational Families Em 6.0% 9.4% 9.0% 1.4% 10.1% 12.9% 12.3% 4.9% 9.3% 16.2% 8.6% Computer Constructi Education, Farming, F Health Car Manageme Office & Ad Production Sales Service Transporta Farming, Fishing, Forestry Health Care Mgmt., Business, Finance Office, Admin Support Production Sales Service Transport., Material Moving Computer, Engrng., Science Construction, Maintenance Education, Legal, Arts, Community Service Texas 2030 Employment by Occupation Family *Some wages have been aggregated for combined occupations.
Ryan Kirkpatrick Vice Chair District Directors 19 Carlos Liriano 21 Pat Schuchart 24 Joseph Shields 26 Mark Stevenson SOUTHWEST Scott Peters Vice Chair District Directors 2 Fernando Varela 3 Joe Loving 4 Robert Turner 7 Ashley Willson EAST W.C. Smith III Vice Chair District Directors 5 Jason Feldman 6 Kirby Janke 15 Chris Kennedy 33 Tony Gullo, Jr. SOUTHEAST Evelyn Sames Vice Chair District Directors 17 Melissa DeMontrond 18 Don Whitaker 20 Jennifer Yoder 27 Bud Payne SOUTH 2023 Executive Committee Joe Chastang IMMEDIATE PAST CHAIR Charlie Gilchrist CHAIR Brian Case, Sr. CHAIR-ELECT Daniel Bradley Vice Chair District Directors 28 David Zwiacher 30 Patrick Sykora 31 John Luciano NORTHWEST Paul Tigrett Vice Chair District Directors 10 Tony Pack 22 Stephen Gilchrist 23 Jose Pozos 34 Mark Daniels NORTH Jeff Rachor Vice Chair District Directors 1 C.J. Barnett 8 Scott Fly 9 Finley Ewing, IV 35 Tobias Fulton NORTHEAST Greg Bruner Vice Chair District Directors 16 Tim Crenwelge 25 Jimmy Bass 29 Bill Pollard, Jr. 32 Drew Hoy WEST Mark Rowe Vice Chair District Directors 11 Julie Herrera 12 Mike Zorn 13 Mary Karr-Ellis 14 Scott Stark CENTRAL 2023 TADA Leadership
DIRECTORS AT-LARGE CAR DEALERS • Howie Bentley • Benny Boyd • Bently Durant • T. Harper • Paula Lohse • Mike Sullivan • Brandon Tomes TRUCK DEALERS • James Bennie Brian Bruckner TEXAS TRUCK DEALER CHAIRMAN Karen Phillips TADA GENERAL COUNSEL AND EXECUTIVE VICE PRESIDENT Darren Whitehurst TADA PRESIDENT METRO CHAIRS • Ivan Ochoa • James Bagan • Jacob Boggus • Joe Chastang • Art Kiolbassa • Brent McGavock • Carl Sewell, III
Robert TURNER C.J. BARNETT Jason FELDMAN Kirby JANKE Ashley WILLSON Fernando VARELA Joe LOVING East, Dist. 4 East, Dist. 3 East, Dist. 2 Northeast, Dist. 1 Southeast, Dist. 5 Southeast, Dist. 6 East, Dist. 7 Scott FLY Mike ZORN Mary KARR-ELLIS Scott STARK Finley EWING, IV Tony PACK Julie HERRERA North, Dist. 10 Central, Dist. 11 Northeast, Dist. 9 Northeast, Dist. 8 Central, Dist. 12 Central, Dist. 13 Central, Dist. 14 Steven GILCHRIST Mark STEVENSON Bud PAYNE David ZWIACHER Jose POZOS Joseph SHIELDS Jimmy BASS Southwest, Dist. 24 West, Dist. 25 North, Dist. 23 North, Dist. 22 Southwest, Dist. 26 South, Dist. 27 Northwest, Dist. 28 Bill POLLARD, JR. Tony GULLO, JR. Mark DANIELS Tobias FULTON Patrick SYKORA John LUCIANO Drew HOY Northwest, Dist. 31 West, Dist. 32 Northwest, Dist. 30 West, Dist. 29 Southeast, Dist. 33 North, Dist. 34 Northeast, Dist. 35 James BENNIE Paula LOHSE Mike SULLIVAN Brandon TOMES Howie BENTLEY Benny BOYD T. HARPER Bently DURANT Director-At-Large Director-At-Large Director-At-Large Director-At-Large Director-At-Large Director-At-Large Director-At-Large Director-At-Large Ivan OCHOA Art KIOLBASSA Brent MCGAVOCK Joe CHASTANG Carl SEWELL, III James BAGAN Jacob BOGGUS Metro Chair Metro Chair Metro Chair Metro Chair Metro Chair Metro Chair Metro Chair Melissa DEMONTROND Chris KENNEDY Carlos LIRIANO Jennifer YODER Pat SCHUCHART Tim CRENWELGE Don WHITAKER South, Dist. 17 South, Dist. 18 West, Dist. 16 Southeast, Dist. 15 Southwest, Dist. 19 South, Dist. 20 Southwest, Dist. 21 2023 District Directors
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The rapidly growing Texas population will require more water — but the supply isn’t projected to keep up with demand. In its 2022 State Water Plan (SWP), the Texas Water Development Board (TWDB) projects the Texas water supply to decrease by 18 percent by 2070 and water demand to increase by 9 percent (Exhibit 1). Approximately one-quarter of Texas’ population would face municipal water shortages without additional supplies by 2070. As a result, Texas leaders are actively working to address factors that affect the availability and variability of water supplies: population growth, water scarcity, climate-related impacts such as drought and extreme weather events, contaminants and aging water infrastructure. The significance of these issues has compelled the Texas Comptroller of Public Accounts to analyze the state’s water supply in a new report, Texas Water: Present and Future Needs 2023. As Comptroller Glenn Hegar says, “The future of water in Texas is the future of the Texas economy.” This article offers a synopsis of the report and highlights some of the efforts to address water needs in Texas. EXHIBIT 1 TEXAS’ EXISTING WATER SUPPLY AND PROJECTED WATER DEMAND, 2020-2070 Sources: Texas Water Development Board; Texas Comptroller of Public Accounts FISCAL NOTES SEPTEMBER 2023 | 1 GLENN HEGAR, TEXAS COMPTROLLER OF PUBLIC ACCOUNTS A Review of the Texas Economy from the Office of Glenn Hegar, Texas Comptroller of Public Accounts BUILDING STRONG INFRASTRUCTURE 28 STATE REVENUE WATCH 33 Texas’ Water Demands Could Outpace Supply in Parts of Texas by 2070 By Astrid Alvarado, Morgan Hecht, Moise Julot SEPTEMBER 2023 FISCAL NOTES 2070 2060 2050 2040 2030 2020 DEMAND EXISTING SUPPLIES MILLION ACRE FEET PER YEAR 0 2 4 6 8 10 12 14 16 18 20 COMPTROLLER’S REPORT HIGHLIGHTS CHALLENGES, PROGRESS IN PROVIDING WATER FOR A GROWING STATE 27 DEALERS’ CHOICE
2 | GLENN HEGAR, TEXAS COMPTROLLER OF PUBLIC ACCOUNTS A Message from the Comptroller The 88th Texas Legislature had an unprecedented budget surplus that allowed lawmakers to invest in initiatives vital to a strong and healthy economy. Some of these initiatives include investments in the state’s critical infrastructure, which improve the lives of Texans in both the near and long term. This month’s issue of Fiscal Notes dives into recent funding initiatives that are meant to meet the needs of our diverse state, including significant investments in strengthening transportation, improving the reliability of our power grid, increasing access to broadband and protecting the state’s water supply. Our roadways are feeling the strain of our rapid population growth. The Legislature will appropriate billions of dollars over the next two years for public roadway construction and maintenance. Airports, public transportation and the state’s shipping channels also will receive funding. In November, Texas voters will have the opportunity to approve a constitutional amendment creating the Texas Energy Fund, which would offer low-interest loans and grants toward innovative energy projects. The measure would also help provide power reserves for schools, hospitals, nursing homes and community centers. (This is a good opportunity to mention my Good for Texas Tour: Energy Edition. Over the coming months, I will tour a handful of energy facilities including natural gas-powered electricity producers, wind farms and nuclear power plants, and share important insights.) Here’s a figure that should make you do a double take: Nearly 7 million Texans don’t have access to reliable highspeed internet. Recent appropriations by the Legislature and availability of federal funding will give the state the flexibility to meet the needs of our unique population and to bridge the digital divide. Innovations in water management are critical to our state’s economy. In this issue, we also examine my office’s new report, Texas Water: Present and Future Needs, and the water strategies designed to keep Texas afloat. As drought conditions continue to impact our state, water planning and management will play key roles in ensuring this precious resource is available for future generations of Texas families and businesses. As always, I hope you enjoy this issue! Glenn Hegar Texas Comptroller of Public Accounts Statewide Snapshot THE GOOD FOR TEXAS TOUR: ENERGY Texas not only is the top producer of oil and natural gas in the nation but also produces more electricity than any other state and accounts for 11.5 percent of all U.S. energy jobs. Texas’ energy portfolio is made up of an array of energy sources: OIL AND NATURAL GAS COAL WIND SOLAR NUCLEAR HYDROELECTRIC BIOMASS Texas Energy Sources In 2022, Texas produced: •27 percent of natural gas in the U.S. •26 percent of all U.S. wind-powered electricity generation, more than any other state. • 42 percent of the U.S. crude oil supply. Texas Energy Production Texas produces more than twice the amount of energy than any other state. WEST VIRGINIA NEW MEXICO WYOMING PENNSYLVANIA TEXAS 0 5,000 10,000 15,000 20,000 25,000 WIND SOLAR, THERMAL AND PHOTOVOLTAIC NUCLEAR NATURAL GAS COAL TRILLIONS OF BTU PRODUCTION LESS CONSUMPTION TOTAL PRODUCTION MEGAWATT HOURS IN MILLIONS 0 100 200 300 400 500 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 TEXAS NET GENERATION BY SOURCE, ANNUAL TOTAL ELECTRIC POWER INDUSTRY TOP 5 STATES FOR ENERGY PRODUCTION, 2021 Energy Economics in Texas JOBS, 2022 936,477 GROSS DOMESTIC PRODUCT, 2021 $100.3 BILLION IN 2021, TEXAS PROVIDED NEARLY ONE FOURTH OF U.S. DOMESTIC PRODUCED ENERGY. Source: U.S. Energy Information Administration If you would like to receive a paper copy of Fiscal Notes, contact us at fiscal.notes@cpa.texas.gov. DEALERS’ CHOICE 28
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FISCAL NOTES SEPTEMBER 2023 | 3 PLANNING FOR THE FUTURE OF TEXAS WATER The TWDB is tasked with supporting 16 regional water planning groups to create the SWP to address water supply needs for current and future Texans. The SWP, released every five years, identifies potential water shortages under “drought of record” conditions and recommends water management strategies to address those potential shortages. Existing water supply in Texas is the combined amount of surface water, groundwater and reuse water (wastewater that is treated and reused for other purposes) available for production and delivery in the occurrence of a drought. As of 2020, groundwater accounted for roughly 55 percent of the water used in Texas. Surface water accounted for 42 percent, and reuse water contributed less than 3 percent. The 2020 water supply was roughly 16.8 million acre-feet per year and is expected to decrease to roughly 13.8 million acre-feet per year by 2070. TEXAS WATER ISSUES Urgent concerns regarding statewide water supplies include aging water infrastructure and weather extremes. “There are several intertwined issues that are at play. The first is the demand on the system combined with the frequency of drought conditions in the state,” says Robert Greer, associate professor and director of the Graduate Certificate in Public Management at Texas A&M University’s Bush School of Government and Public Service. Greer continues, “We have more people demanding more water, and we have seen several significant drought events that have kept supply low. That scarcity puts pressure on the overall system, but of course that severity will vary by region.” AGING WATER SYSTEMS The age of water infrastructure varies across the United States: Some water utility systems are still equipped with pipes that were installed in the 1800s, but most systems date from the early to mid-20th century. There are more than 165,000 miles of pipes in the water distribution system in Texas. According to a 2022 survey from the Texas Rural Water Association, the average year of installation of small- to medium-sized water systems in the state was 1966. “We are dealing with aging infrastructure that needs to be replaced or requires costly maintenance,” Greer says. “In Texas, we have a large number of small water providers that are responsible for maintaining their own infrastructure, and they do not always have the capacity to keep up. Many of the older systems lose water and break often.” Greer clarifies that capacity in this case means both fiscal resources to pay for the maintenance and replacement, and the workforce to keep the system functioning. “One piece of evidence of the system breaking down has been the large number of boil water notices that we have seen over the last couple of years,” Greer says. In 2022, there were 3,143 boil water notices in Texas compared with 1,993 notices in 2018, according to the Texas Commission on Environmental Quality. In 2021, an estimated 130 billion gallons of water were lost due to infrastructure issues. Of that total, 30 billion gallons of water loss can be attributed to broken pipes and water leaks — enough to provide a year’s supply of water to nearly 1.2 million average American households. The TWDB Water Loss Audits Summary Report, a repository of data, illustrates that in 2021, the East Texas Water Planning Region (I), in which the largest cities include Beaumont, Tyler, Lufkin and Nacogdoches, led all other regions with a reported water loss average of 79.87 gallons per connection per day. They were followed by Region F, where the major cities include Midland, Odessa and San Angelo, with a water loss average of 78.54 gallons per connection per day. The statewide water loss average in 2021 was 54.68 gallons per connection per day (Exhibit 2). EXHIBIT 2 AVERAGE REPORTED WATER LOSS IN GALLONS PER CONNECTION PER DAY (GCD), 2011-2021 YEAR AVERAGE STATEWIDE WATER LOSS GCD NUMBER OF AUDITS SUBMITTED 2011 72.30 117 2012 65.34 334 2013 53.46 472 2014 58.50 591 2015 51.21 1,729 2016 58.24 743 2017 56.87 642 2018 62.13 689 2019 54.39 901 2020 55.02 1,776 2021 54.68 828 Note: Data from submitted water loss audits after quality control has been completed. Water loss audits with obvious data issues were removed. Source: Texas Water Development Board Summary Audits by Category Texas’ Water Demands Could Outpace Supply in Parts of Texas by 2070 Robert Greer, Texas A&M University DEALERS’ CHOICE 30
4 | GLENN HEGAR, TEXAS COMPTROLLER OF PUBLIC ACCOUNTS EXHIBIT 3 ESTIMATED ECONOMIC IMPACT FROM DROUGHTS BETWEEN 2020 AND 2070 (IN MILLIONS OF DOLLARS) WATER USE CATEGORY ECONOMIC IMPACT 2020 2030 2040 2050 2060 2070 IRRIGATION Income Loss $843.90 $1,356.90 $1,319.00 $1,287.60 $1,258.80 $1,244.20 Job loss 13,107.50 19,484.30 18,909.30 18,440.50 18,012.70 17,791.40 LIVESTOCK Income Loss $2,196.20 $2,416.40 $2,679.70 $3,031.90 $3,452.60 $3,606.40 Job loss 46,399.60 49,843.60 53,736.20 58,536.70 64,300.70 66,300.40 MANUFACTURING Income Loss $19,192.40 $30,449.70 $35,692.90 $43,552.20 $50,379.70 $55,495.80 Job Loss 156,431.40 244,190.70 278,375.40 331,938.70 379,571.10 414,976.70 MINING Income Loss $67,239.00 $62,450.50 $48,627.10 $38,495.00 $27,513.10 $25,367.90 Job Loss 348,111.00 325,175.50 255,386.40 205,624.50 151,326.30 142,973.20 MUNICIPAL Income Loss $1,814.80 $7,165.50 $15,186.00 $23,348.20 $32,612.40 $42,027.60 Job Loss 34,159.70 117,943.20 244,065.20 373,512.50 520,802.90 671,445.90 STEAM-ELECTRIC Income Loss $6,878.20 $7,298.00 $7,627.70 $7,896.60 $8,125.30 $8,338.50 Job Loss 0.00 0.00 0.00 0.00 0.00 0.00 Source: Texas Water Development Board ECONOMIC IMPACT OF WATER LOSS TWDB indicates that by 2070, prominent water use categories (irrigation, livestock, manufacturing, mining, municipal and steam-electric) may experience income losses and job losses due to the anticipated decrease in the state’s water supply should water management strategies from the SWP not be implemented. Municipal water use is anticipated to experience more than 671,000 job losses by 2070, the largest number of job losses of all water use categories (Exhibit 3). Agriculture-related sectors are especially hard hit by water loss. The drought of record experienced in Texas was between 1950 and 1957, causing crop losses of more than $3 billion, or $27 billion in 2017 dollars. When adjusted for inflation in 2023 dollars, the total in crop losses is $34 billion. The worst drought in recent years occurred between 2010 and 2014, impacting 100 percent of the state and costing an estimated $17 billion in losses in 2011 alone. Texas’ cotton crop, for example, has experienced harvesting declines. The state’s most produced crop, accounting for nearly $2 billion in state exports in 2021, was estimated to experience a $2 billion loss of regional economic activity (before crop insurance) in the High Plains region of Texas in 2022, according to the International Center for Agricultural Competitiveness at Texas Tech University. Additionally, in 2022, farmers across the U.S., including Texas, were anticipated to plant their smallest crop of cotton since 2009, harvesting just 2.9 million bales — 62 percent less than in 2021. Drought conditions are expected to force farmers to abandon two-thirds of acres planted in 2023, a historic high abandonment rate, according to the U.S. Department of Agriculture. INNOVATIVE WATER CONSERVATION PRACTICES Water conservation includes innovative practices that reduce water consumption and improve efficiency to meet future demand; those highlighted by the American Society of Civil Engineers’ (ASCE) Report Card for America’s Infrastructure include technology relating to leak detection, seismic resilient pipes, smart water quality monitoring and real-time data sensors. The ASCE suggests that these innovative practices improve resilience of water systems by allowing utilities to Texas’ Water Demands Could Outpace Supply in Parts of Texas by 2070 What is the drought of record? The drought of record is the period when natural hydrological conditions provided the least amount of water supply. Generally, this also corresponds with high water usage rates. The drought of record is considered a reasonable benchmark for planning because it reflects quite severe, extended drought conditions (the worst experienced ever on record) and uses the best available, actionable science, grounded in historical data and patterns. Source: Texas Water Development Board 31 DEALERS’ CHOICE
FISCAL NOTES SEPTEMBER 2023 | 5 respond to changing climate conditions; improve efficiency of operations by reducing water losses; and deliver real-time data that allow for interactive decision-making. According to a 2022 report by the Texas Water Conservation Advisory Council, irrigation conservation represents the state’s best opportunity to achieve significant water use savings. This is because the SWP projections estimated that agriculture irrigation accounted for 53 percent of all water use in the state in 2020, the highest among all water use categories, followed by municipal water demand (Exhibit 4). EXHIBIT 4 PROJECTED WATER DEMAND BY WATER USE CATEGORY, 2020 Source: Texas Water Development Board Precision agricultural technology, coupled with expanded access to broadband connection, can help farmers reduce fuel and water usage. High-speed internet connectivity is necessary for digital technologies in agriculture to reach their full potential and substantially increase crop and animal yields, improve distribution and reduce input costs such as the expense of raw materials and labor. ADDRESSING TEXAS WATER NEEDS The variability in water supply and aging infrastructure throughout the state requires investments in the use, quality and impact of water. From its inception in 1957 through April 2023, TWDB has offered a variety of loan and grant programs providing approximately $33.6 billion in funding for the planning, acquisition, design and construction of water-related infrastructure and other water quality improvements. According to TWDB’s Water Supply and Infrastructure Division, since 2013 alone the TWDB has provided more than $12 billion to water infrastructure in Texas through the Drinking Water State Revolving Fund (DWSRF) program and the State Water Implementation Fund for Texas (SWIFT) program. Other TWDB programs, such as the Economically Distressed Areas Program and the Texas Water Development Fund (WDF), have provided additional funding for water infrastructure needs, according to TWDB. For projects that address aging infrastructure (outside the DWSRF and SWIFT programs), the WDF has increased funding. TWDB committed $20 million toward addressing aging infrastructure needs in 2022, up from $4.5 million in 2018. Additionally, the federal Infrastructure Investment and Jobs Act (IIJA), signed into law in 2021, appropriates more than $50 billion to the U.S. Environmental Protection Agency to improve drinking water, wastewater and stormwater infrastructure nationwide. Texas expects to receive approximately $2.5 billion through the IIJA to improve water and wastewater infrastructure over the next five years. According to TWDB, the agency received $222.3 million in 2023 from IIJA, of which 49 percent must be committed to projects in the form of principal forgiveness. SUPPORTING NEW RESOURCES FOR WATER The availability of sufficient water supplies to support business and industry, economic development efforts and public health and safety is vital to the continued strength of the state. “With the population ballooning and businesses booming, it comes as no surprise that Texas will need a lot of water to stay afloat. But planning for Texas’ future water needs requires the dedication and resourcefulness of organizations and passionate individuals,” Hegar says. The 88th Texas Legislature in 2023 supported Texas water with the passage of Senate Bill 28. The bill was passed to support the financial assistance provided by TWDB and the programs administered by the agency to fund water supply projects that create new water sources for the state including desalination projects, produced water treatment projects, aquifer storage and recovery projects, and the development of infrastructure to transport water that is made available by the new water supply projects. Texas voters will get the opportunity to weigh in on a proposed constitutional amendment to create the Texas Water Fund to help finance water projects in the state. This fund will only be established if the proposed constitutional amendment, Proposition 6, is approved by Texas voters in November. FN Read the full report, Texas Water: Present and Future Needs 2023, at comptroller.texas.gov/economy/in-depth/special-reports. Texas’ Water Demands Could Outpace Supply in Parts of Texas by 2070 LIVESTOCK / 2% MINING / 2% STEAM ELECTRIC / 5% MANUFACTURING / 8% MUNICIPAL / 30% IRRIGATION / 53% DEALERS’ CHOICE 32
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