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:
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.
SIGN UP for our email updates and follow us on LinkedIn to be notified as our research is released or PARTNER WITH US to create a stronger, safer, and more prosperous Texas.