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BLOG  |  Funding Implications  |  September 2024

Funding Implications and Economic Impact of the Undercount in Texas

This summer, the Texas Census Institute launched its Funding Implications Series. Over the next several months, this work will explore the cost to counties, industries, and specific population groups as a result of our state’s undercount.

The funding implications are significant:

In raw numbers, Texas will not receive $25 Billion in Federal Funds due to the 2020 Census undercount

The economic impact affects us all:

Texas will lose around $51 Billion in production

The industries most impacted are Healthcare & Social Assistance and Construction

The Issues Texans Care About Most

To start this project, TxCI looked at the issues that are important to our state and surveyed folks in every region to better understand local concerns and priorities. While different issues were relevant in different parts of the state, one theme was consistent throughout: the economy.

To understand the economic impact of the census, the Texas Census Institute, in collaboration with the Project on Government Oversight (POGO), examined the effect of the census count in the distribution of 330+ federal programs to study:

Economic Development
Education
Environment
Health
Housing
Infrastructure
Public Safety

You can read the first research product of this series, which examines the funding implications by issue, HERE.

The Dollars Texas Will Lose

To further examine the implications of the census undercount on economic indicators such as Jobs, Gross Domestic Product (GDP), Production, and Labor Income, we analyzed the economic impact of the undercount at the industry level, using the NAICS 2-digit classification, in collaboration with the Hibbs Institute for Business & Economic Research at the University of Texas at Tyler.

If the 2020 undercount of 1.92% remains the same in 2030, during the next decade, Texas will lose:

$57 Billion in production

$33 Billion in GDP

430K+ jobs

Taking our Research on the Road

It’s imperative that we understand and share these findings so Texas and Texans can continue to build a thriving state for future generations.

In June, our Senior Research Associate, Dr. Francisco A. Castellanos-Sosa kicked off this research initiative with a presentation in conjunction with the Project on Government Oversight and the Census Counts campaign. This conversation explored our methodology for calculating impact, as well as the correlation between our data and that of the federal government programs. You can see the presentation here

Texas can’t afford to undercount our population

In the coming months, be on the lookout for opportunities to learn more about the economic impact of the census. 

The Texas Census Institute provides independent, nonpartisan, data-driven and trusted census policy and program guidance that encourages census participation so all Texans can enjoy a great quality of life.  For more information or to join our efforts, visit texascensus.org.

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