Texas Central Partners and our privately developed high-speed rail system can play a significant role in supporting the state’s economic growth and complementing its transportation infrastructure. I’m pleased to share the results of a new independent study that shows the project would add more than $36 billion in economic benefits to our state.
Insight Research Corp. of Allen, a widely recognized research firm, found in its investment-‐‑grade analysis for Texas Central that the economic impact of the project over the next 25 years will be widespread, contributing to local, regional and statewide economies through direct spending, increased employment and taxes paid by the private project.
The benefits of building the system will be enormous. At Texas Central, we estimate we will invest $10 billion on the project’s design and construction. That investment could spur a $36 billion boost to the Texas economy from 2015 to 2040, roughly the economic equivalent of 180 Super Bowls and 60 Texas State Fairs. This is an unprecedented multi-billion-dollar private investment in the state’s future. The overall economic impact is incredible and it’s real.
As I’ve said in the past and I would like to reiterate: We are not accepting federal construction grants, nor will we require public subsidies for operation. Instead, as a private, Texas-based company, we will pay property and school taxes on the more than 240 miles of track, three stations and maintenance facilities along the route. I’m excited this initial investment will have a ripple effect on the economy for generations to come.
Between now and 2040, we estimate Texas Central could be the source of nearly $2.5 billion in tax revenues to the state, counties, local municipalities, school districts and other taxing entities. So what does this tax revenue mean for Texans? For comparison, the project’s estimated school taxes alone could provide enough funds to pay the annual salaries for 13,000 teachers, buy 8,500 school buses, or buy more than 600,000 new iMacs for classrooms.
While the benefits to schools would be felt statewide, all counties along the route would receive significant, long-‐‑term benefits during and after construction of the landmark project. Grimes County alone could receive more than $50 million in additional tax revenues as a result of the project between now and 2040.
These tax revenues are a direct result of Texas Central’s plans to invest more than $1 billion there on track facilities and a new passenger station. The Brazos ValleyStation also has the potential to attract retail and large-lot residential development to the area.
As we’ve seen, the pent-up consumer demand for additional transportation alternatives between North Texas and Houston has already attracted investment to this project from across Texas. Today’s news further demonstrates that the project will provide a new, safe, fast and productive travel alternative, and will also serve as a model for how private investment in infrastructure can provide an even more significant and long-lasting public benefit through its contributions to local and state economies.
As always, I thank you for your time and appreciate your support.