A Focus on Public Policy

In this issue of Greater Waco Business, we take a look at the impact of public policy on economic development and their important relationship. As part of our strategic efforts, your Chamber visits Washington, D.C. each year to advocate for our business community.

A GREATER WACO CHAMBER PUBLICATION

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A MESSAGE FROM THE CEO

MATT MEADORS President & CEO, Greater Waco Chamber

2026 EXECUTIVE COMMITTEE CHAIR Todd Moore Alliance Bank Central Texas CHAIR-ELECT

Economic development does not happen in a vacuum. It is shaped every day by the policies that govern how communities grow, how businesses operate, and how opportunity is created, which is why public policy matters so deeply to the work of the Greater Waco Chamber. At its core, economic development is about creating the conditions for businesses to invest, innovate, and succeed. Public policy influences those conditions in very real ways. In this issue of Greater Waco Business, we explore the critical intersection of public policy and economic development, and the role your Chamber plays in representing the voice of business across all levels of government. Advocacy is not a separate function from our economic development mission; it is a core part of it. When policy supports growth, innovation, and fairness, our businesses thrive, our workforce expands, people prosper, and our community benefits. The Greater Waco Chamber approaches public policy with a clear focus: advancing policies that strengthen the regional economy and improve the overall business climate. Through research, collaboration, and strong relationships with policymakers, we work to ensure that the needs of employers, entrepreneurs, and investors are clearly understood and thoughtfully considered. Our Public Policy Committee, made up of leaders from across industries, helps guide this work so that our advocacy reflects the real priorities of those doing business in Greater Waco every day. This issue highlights the importance of informed, strategic engagement in the policy process, and why business voices matter. Whether the topic is workforce readiness, infrastructure investment, emerging technologies, or regulatory clarity, thoughtful public policy helps set the stage for sustainable economic growth. As you read this issue, I hope it reinforces an important truth: when business leaders engage in public policy, and when policy is shaped with economic impact in mind, communities like Greater Waco are better positioned to succeed. As always, thank you for your continued support of your chamber of commerce.

Keith Helpert K4 Construction VICE CHAIR

Dr. Jackson Griggs Waco Family Medicine VICE CHAIR Stephanie Peters Cargill IMMEDIATE PAST CHAIR Carolyn Haferkamp Central National Bank PRESIDENT & CEO Matt Meadors Greater Waco Chamber

With appreciation,

Matthew T. Meadors President & CEO

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CHAMBER STAFF Kacie Birkes Director Signature Events Kris Collins

Executive Vice President Gabriella Colurciello Director Marketing & Communications Nancy Gupton Director Resource Development Jacob Hogan Vice President Public Policy & Chamber Foundation Keith Kusler Art Director Andrea Lail Director Workforce & Talent Rachel Ligon Director Leadership Development Rachel Martinez Senior Director

Workforce & Talent Matt Meadors President/CEO Molly Merritt Vice President Business Development Seth Morris Vice President Economic Development Jason Powers Senior Vice President Finance & Operations Lexy Reil Director Economic Development Gil Salinas Research & Project Manager Economic Development Rebecca Sheehy Manager Signature Events Tori Sparks Coordinator Economic Development Lupe Teichelman Manager Resource Development Emily Vieregg Coordinator Resource Development Michelle Williams Director Finance & Operations Autumn Young Manager Marketing & Communications

inWaco was created to highlight the characteristics that make our community special with the ultimate goal of recruiting and retaining our most valuable resource: our

people. inWaco comprises everything Greater Waco has to offer, including jobs. With an integrated

job board and place for job seekers to post their resumes, the inWaco website offers a place for employers and potential employees to connect. Talent and workforce remains vital to

the work of your Greater Waco Chamber and we are committed to being part of the solution.

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6 SHAPING POLICY FOR A COMPETITIVE REGIONAL ECONOMY

TEXAS ON THE FRONTIER OF ARTIFICIAL INTELLIGENCE: INNOVATION WITH RESPONSIBILITY 10

22 MCLENNAN COUNTY CONTINUES CRITICAL WATER SUPPLY PLANNING EFFORTS

26 SHAPING WACO'S FUTURE: WHY BUSINESS LEADERS ARE STEPPING INTO PUBLIC POLICY

30 A HISTORIC POLICY CHANGE FOR TEXAS' WATER FUTURE

40 ECONOMIC DEVELOPMENT ED NEWS ECONOMY IN FOCUS

14 BUILDING PROSPERITY: HOW THE 89TH LEGISLATIVE SESSION WILL SHAPE OUR ECONOMIC FUTURE

44 CHAMBER NEWS

52 MEMBER NEWS

54 RIBBON CUTTINGS

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58 NEW MEMBERS

PROPOSITION 1 APPROVAL SECURES NEW ERA OF STABILITY FOR TEXAS STATE TECHNICAL COLLEGE

ON THE COVER In this issue of Greater Waco Business, we take a look at the impact of public policy on economic development and their important relationship. As part of our strategic efforts, your Chamber visits Washington, D.C. each year to advocate for our business community. On the cover, you'll see a recent delegation of community leaders.

EDITORS Gabriella Colurciello Autumn Young ART DIRECTOR Keith Kusler AD SALES Gabriella Colurciello (254) 757-5618 gcolurciello@wacochamber.com

Greater Waco Business is published and distributed to Chamber members and economic development prospects. Digital copies are available online at WacoChamber.com. This publication is printed on FSC-certified paper.

© 2025 Greater Waco Chamber 101 S. Third St. Waco TX 76701 • (254) 757-5600

The Greater Waco Chamber reserves the right to reject editorial or advertising content in the Greater Waco Business publication, and via the organization’s full range of communications platforms, at its sole discretion.

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SHAPING POLICY FOR A COMPETITIVE REGIONAL ECONOMY

by Jacob Hogan, Vice President, Public Policy & Chamber Foundation, Greater Waco Chamber

The Chamber plays an active leadership role in helping to positively shape the policy environment in which our business community operates. Through research, relationship- building, and coordinated advocacy, we work to ensure that Greater Waco’s economic landscape remains attractive, competitive, and positioned for long-term success. Our policy efforts are guided by the Greater Waco Chamber Public Policy Committee. The committee is a diverse group of business and community leaders across various sectors who provide insight, expertise, and strategic direction to our advocacy efforts. The committee informs our advocacy positions to ensure they reflect the needs and priorities of employers across the region. Our approach is rooted in a simple but powerful goal: to strengthen the environment where businesses can grow, workers can thrive, and our community can flourish. By engaging directly with elected officials in Waco, Austin, and in Washington, D.C., we help communicate how legislation and regulatory decisions impact local businesses, regional competitiveness, and the economic landscape. These conversations allow us to highlight the unique strengths of the Greater Waco region, while also advocating for practical solutions to the challenges that businesses face.

The Greater Waco Chamber is committed to cultivating a strong, resilient regional economy that can create opportunity and prosperity for all who call the Greater Waco region home. Our commitment

extends beyond our traditional economic

development activities. It includes strategic and proactive engagement in public policy at the local, state, and federal levels. In today’s competitive landscape, policy decisions significantly influence business success. It is essential for the voice of the business community to be clearly heard and thoughtfully represented.

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To advance this mission, the Chamber’s public policy efforts are organized around four core pillars. Each reflects a critical area necessary for the long-term economic vitality of our community:

Across each of these focus areas, the Chamber remains committed to collaboration. It is often said that economic development is a team sport, and active public policy efforts play a key role in creating economic prosperity for all in our community. We regularly convene stakeholders, host policy events, organize legislative trips to Austin and Washington, D.C., and communicate with decision- makers to ensure key issues facing the business community are clearly understood. We maintain strong relationships with policymakers and their staff in order to share the real- world experiences of employers, and to help shape informed decisions that benefit both our continues to grow, develop, and attract new opportunities, the need for strong policy leadership will only increase. The Chamber is proud to serve as a trusted voice and advocate for the business community. We remain committed to championing policies that ensure our region thrives today and for generations to come. n businesses and residents. As the Greater Waco region

1. Workforce & Education A skilled, adaptable workforce is the foundation of a strong economy. The Chamber works closely with education and community partners to ensure employers have access to the talent they need. This includes promoting policies that expand workforce training pathways, support career and technical education, and encourage collaboration between educators and industry. By aligning education systems with employer needs, Greater Waco is positioning itself as a destination where businesses can confidently invest and grow. 2. Business Climate A healthy business climate is essential for economic growth, competitiveness, and innovation. The Chamber advocates for policies that reduce unnecessary regulatory burdens, encourage entrepreneurship, and support a fair and stable tax structure. We champion initiatives that streamline permitting processes, increase government efficiency, and protect the ability of businesses to operate effectively. A strong business climate does not just benefit employers, it drives job creation, strengthens our local economy, and enhances the overall quality of life for our residents. 3. Economic Development Sustained prosperity requires strategic investment in both business recruitment and business retention. The Chamber supports policies that allow the Greater Waco region to attract new businesses while also helping our existing companies expand. This includes advocating for competitive economic development tools, incentives, and infrastructure investments that signal to companies that Waco is a smart and supportive place to do business. Our efforts help ensure that the region remains competitive not only within Texas but nationally and globally. 4. Infrastructure Modern, reliable infrastructure is the backbone of economic growth. Whether it’s transportation networks, water systems, broadband connectivity, or reliable energy, the infrastructure that supports daily life and business operations must keep pace with the region’s increasing demand. The Chamber advocates for forward-thinking infrastructure planning and investment, recognizing that these systems are essential to mobility, industry expansion, supply-chain efficiency, and community resilience. A region prepared with dependable infrastructure is a region ready for future growth.

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TEXAS ON THE FRONTIER OF ARTIFICIAL INTELLIGENCE: INNOVATION WITH RESPONSIBILITY

by Senator Tan Parker

high-quality medical care. In boardrooms and on manufacturing floors, business leaders are deploying AI to streamline operations, strengthen supply chains, and sharpen global competitiveness. And around kitchen tables, families are confronting new risks, from AI- enabled fraud targeting seniors to manipulated images harming children. Texans are optimistic about what AI can make possible, but they’re also asking a critical question: How do we ensure innovation enhances human dignity rather than eroding it? This moment calls to mind another era of technological competition. When the Soviet Union launched Sputnik in 1957, it sparked the space race and a contest of systems: freedom and control, possibility and fear. America’s answer was bold and strategic. We invested, innovated, and acted with purpose. Twelve years later, Neil Armstrong stepped onto the moon — and freedom prevailed. Today’s race is digital rather than orbital. AI is reshaping markets, redefining security threats, and transforming daily life. Our competitors abroad are moving quickly, and authoritarian regimes, such as China, are using AI not for human advancement, but as an instrument of censorship and control. Their vision is one where technology enables obedience over opportunity. Texas rejects that vision. We believe AI should expand human freedom, not restrict it. During the 89th Legislative Session, we built one of

Texas has always been defined by a willingness to cross new frontiers. Our history is the story of pioneers who pushed beyond the known world: building communities on open prairie, powering America through an energy revolution, and guiding mankind to the moon from Houston’s Mission Control. That spirit was never about geography. It has always been about mindset — the conviction that Texans do not wait for the future to arrive; we build it. Today, our newest frontier is artificial intelligence (AI). Unlike past technological shifts, AI is not emerging quietly at the edges of society. It is arriving rapidly, touching every industry and community, while challenging us to answer big questions about innovation, ethics, and freedom. In Texas, we refuse to view AI as a technological disruption. We see it as a test of values and a moment in which leadership, courage, and responsibility must work together. This new frontier is taking shape across our state. At Baylor University, SMU, Texas Christian University, and the University of Texas, for example, researchers are advancing machine-learning tools that support earlier disease detection and improve access to

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the nation’s most comprehensive state-level AI governance frameworks, anchored in innovation, transparency, and human dignity. Our approach began with a simple principle: technology must never outpace values. We enacted first-in-the-nation protections against AI- generated child exploitation. We also modernized tools for prosecutors and law-enforcement officers to combat deep-fake extortion, AI-enabled fraud schemes, and malicious impersonation which threatens families and businesses in every corner of our state. However, guarding against harm is only part of the answer. Texas must lead with responsible innovation and smart governance, which is why we created the Texas Artificial Intelligence Advisory Council and established clear statewide standards for the use of AI in government services. Those standards rest on common sense and timeless principles. When government utilizes

automated systems, Texans deserve transparency about when those tools influenced outcomes. They deserve a human touch to explain decisions and correct mistakes. They deserve safeguards and accountability. Most importantly, they deserve certainty that technology exists to serve our people, not the other way around. In practice, this means an automated tool used for something routine — like filing a permit request or checking benefits status — is treated differently than a system involved in decisions affecting liberty, livelihood, or healthcare. Higher- risk systems face greater testing, monitoring, and human oversight. Software vendors who want to work with Texas must demonstrate ethical data practices, technical transparency, and clearly documented model behavior. If a system cannot be clearly explained, it cannot be deployed in Texas government. That is the standard that Texans expect — and the one that will accelerate innovation by rewarding those who build responsibly.

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This balanced approach gives innovators confidence and citizens peace of mind. It also ensures Texas remains a magnet for AI talent and investment. Whether in Waco’s growing innovation corridor, Austin’s tech hub, or biomedical centers in Dallas and Houston, Texas is cultivating

ways not aligned with freedom. If we meet this moment with the same grit and determination that carried Texans across oceans, plains, and into space, then we will build an AI future anchored in dignity, security, and boundless opportunity. The stakes are generational. But so, too, is the promise. Texas has never feared the frontier, and this one is

an ecosystem where AI helps

no different. We will protect our people, empower our innovators, and ensure that the story of AI, like the story of space, energy, and enterprise before

doctors detect cancer earlier, assists farmers improve yields, protects energy infrastructure from cyber threats, and supports first responders as they work to save lives. The story of AI in Texas, then, is not simply a story of regulation or research. It is a story of purpose. It is about ensuring that this technology, perhaps the most transformational tool since electricity, evolves in a way that lifts people up, strengthens free enterprise, and protects the dignity of the individual. The world is watching how states respond to this moment. Washington often moves slowly, but states serve as laboratories for innovation and efficiency. Policies move with speed and clarity, effectively serving as blueprints to guide the nation. And for Texas, we are choosing a course that defends liberty, encourages innovation, and reflects our enduring belief that free people, trusted and empowered, will always lead the way. Artificial intelligence is the next frontier. And like frontiers before it, it will test our resolve, our vision, and our values. If we shrink from the challenge, others will define our future in

it, is written in the language of liberty with a bold vision for a brighter tomorrow.

And when future generations look back at this era, I believe they will say what history has always said of Texas: When the frontier called, we led. n

Senator Tan Parker of North Texas is a businessman who represents Senate District 12. He serves as Chair of the Senate Republican Caucus and Co-Chair of the Texas Artificial Intelligence Advisory Council and authored SB 1964, the landmark legislation establishing Texas’ statewide framework for responsible, ethical, and secure AI use across government.

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How the 89th Legislative Session Will Shape Our Economic Future

by Matt Abel, VP, Government Affairs, Texas Economic Development Council

Look around Waco and you might not notice it at first, but the signs of economic development are everywhere. From the $1 billion Graphic Packaging facility in Texas Central Park to Electrolit's $400 million facility, major investments are transforming the economy. But behind these headline- grabbing projects lies a framework of state policies, local tools, and cooperative partnerships that make such transformations possible. The 89th Texas Legislative Session protected and expanded programs that enable Texas communities to attract investment and create quality jobs.

Understanding Economic Development Before getting into the nitty-gritty legislative details, it's important we understand what economic development is and why it matters to residents. Economic development is a deliberate effort to improve a community or region's economy. It includes efforts to attract new businesses, assist existing companies in expanding, create quality jobs, and build a resilient economy that can withstand economic challenges. Economic developers are the professionals who make this happen. They work as problem solvers, collaborators, and community advocates. Why does this matter to Waco residents? A strong economic development program directly affects their quality of life. It means more jobs for local families. It means investment from new industries that will bolster the tax base which funds schools and infrastructure. When Graphic Packaging International decided to invest $1 billion in Waco— the largest economic development deal in the city's history—it wasn't just luck. It was the result of strategic economic development efforts, including workforce development partnerships with Texas State Technical College and McLennan Community College, infrastructure planning, and targeted business incentives.

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The 89th Session: Playing Defense to Protect Local Tools Our main goal coming into the legislative session was clear: protect the economic-development tools that allow local communities to shape their own futures. On that front, the session was a success. Throughout the 140-day regular session, numerous proposals threatened to limit local flexibility or weaken key economic development programs. Several bills targeted Chapter 380 and Chapter 381 agreements, which are powerful tools that allow cities and counties to negotiate economic development deals with businesses. These agreements can include tax abatements, cash grants, or infrastructure improvements in exchange for job creation and capital investment. When the Legislature created Chapter 380 agreements in 1989, they wisely built a flexible program that any community could use: large or small, rural or urban (or suburban), industrial-focused or tourism-focused. Opponents of these tools argued that they were being misused and pushed for overly burdensome requirements that would discourage investment. Economic developers and the business community responded that local control and flexibility are vital for competing with other states and countries for business investment. Thanks to coordinated advocacy efforts, including a coalition letter signed by over 50 local economic development organizations across Texas, none of these restrictive bills became law.

Texas Department of Agriculture also fell short. This program offers rural communities financial support for necessary infrastructure projects to attract new development. Historically, this program has enabled smaller Texas communities to share in the state's economic growth. Chairman Greg Bonnen (R-Friendswood) proposed using part of the state's Rainy Day Fund to invest in Texas-based companies, supporting local innovation and entrepreneurship. Our Rainy Day Fund is an important financial safety net for the state. It helps maintain "AAA" ratings from multiple credit rating agencies. That said, the roughly $27 billion in the fund can only be invested in low-risk assets that barely beat inflation. It is wise to invest a small portion of this fund in innovative Texas-based companies. Once these investments mature, the Rainy Day Fund will realize capital gains, thereby increasing the overall fund. Significant Wins: Infrastructure & Workforce Development Despite the defensive posture on economic development policy, the 89th Session delivered victories in areas that directly support economic competitiveness: infrastructure and workforce development. Senator Charles Perry (R-Lubbock) and Chairman Cody Harris (R-Palestine) tirelessly worked on a transformative investment in water infrastructure, which is critical for a state that is experiencing rapid growth and recurring droughts. Texas voters overwhelmingly approved Proposition 4 in the recent election, which will allocate $1 billion per year from sales tax revenue to water projects over the next 20 years. Additionally, Chairman Bonnen and Senator Joan Huffman (R-Houston) authored House Bill 500, which provides an immediate $2.5 billion investment for repairing existing water systems and developing new water supplies. Reliable water infrastructure is essential to our continued ability to attract projects like Graphic Packaging International. Energy infrastructure also received major support. Lawmakers allocated an additional $5 billion to the Texas Energy Fund, bringing its total to $10 billion. This funding supports dispatchable power generation and transmission infrastructure, which are vital to grid stability as Texas continues to attract energy-intensive industries such as data centers and advanced manufacturing.

Missed Opportunities: Where the Session Fell Short

While protecting existing tools was essential, the 89th Session missed several opportunities to improve our competitive edge. The Jobs, Energy, Technology, and Innovation (JETI) program, created in the 2023 legislative session to replace the now- abolished Chapter 313 program, has fallen short of expectations. These programs offer a school district the opportunity to abate a portion of its property tax levy for a business making a significant capital investment in the region. In the first 22 months since its launch, only a few projects used the program. In comparison, the previous Chapter 313 program typically supported about 20 projects per year. Despite recognition that reforms were necessary, lawmakers made no changes. Efforts to fund the Capital Access Program at the

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Workforce development also received significant funding. Senator Brian Birdwell (R-Granbury) authored what became Proposition 1 on the recent ballot. Texas voters approved the creation of an $850 million endowment fund for Texas State Technical College. This permanent funding will support capital projects and equipment for workforce education programs in high-demand technical fields, precisely the kind of training needed for the skilled manufacturing jobs that Graphic Packaging, Electrolit, and other Waco employers will offer. Sector-Specific Funding: Positioning Texas for Future Industries The Legislature provided major funding for emerging industry sectors that support Texas' economic development strategy. The Texas Space Commission received $300 million in additional grant funding, the Texas Semiconductor Innovation Fund got $250 million, and a new Texas Advanced Nuclear Development Fund was established with $350 million. The motion picture industry received $250 million, with a commitment to $350 million every two years, providing stable, predictable funding that film production companies need to make long-term location decisions. Waco is well-positioned to benefit from these investments. Regionally, it can attract semiconductor suppliers to support the large fabs in Texas, such

as Texas Instruments in Sherman and Samsung in Taylor. This was evident when EFC Gases & Advanced Materials announced last year its plan to invest $210 million in a site in McGregor. Likewise, additional funding for the Texas Space Commission could attract new investment around SpaceX's McGregor facility. As these industries continue to develop, opportunities will continue to ripple through regions like Central Texas. Waco's Recognition: A CEDA Award Success Story The importance of strong economic development initiatives was recently recognized when the City of Waco and McLennan County received the Community Economic Development Award (CEDA) from the Texas Economic Development Council. This award acknowledges communities that make outstanding contributions to Texas's economic vitality through innovation, leadership, and collaboration in areas such as business retention, recruitment, and community enhancement. "Our Community Economic Development Award is one of the ways in which our organization honors the excellent work done by our communities, their leaders, and their economic development professionals," noted Carlton Schwab, President & CEO, Texas Economic Development Council.

City of Waco and McLennan County receiving the Community Economic Development Award

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“ ECONOMIC DEVELOPMENT BRINGS IN MILLIONS OF DOLLARS IN ADDITIONAL TAX REVENUE THAT CAN BE USED TO FUND SCHOOLS, PARKS, AND PUBLIC SAFETY WITHOUT RAISING TAXES ON EXISTING BUSINESSES AND RESIDENTS. ”

The City of Waco and McLennan County received a CEDA for their success in attracting Electrolit's $400 million state-of-the-art manufacturing facility. This project will create 200 well-paying jobs and generate nearly $100 million in new tax revenue for the community over the next 20 years.

and mixed-use development, will require sustained policy support at the state level. Water infrastructure funding from the 89th Session will help, but future phases will need continued state partnership. The Bottom Line for Waco Residents Economic development might seem abstract, focusing on tax policies, incentive programs, and legislative language. But its effects are real and personal. When Graphic Packaging International breaks ground on a $1 billion facility, it means 230 families gaining good-paying jobs. When Electrolit chooses Waco for its first U.S. production site, it creates 200 more jobs. It brings in millions of dollars in additional tax revenue that can be used to fund schools, parks, and public safety without raising taxes on existing businesses and residents. The 89th Legislative Session protected the tools that made these wins possible. Lawmakers invested in the infrastructure and workforce development that businesses need. It was a session of steady, important work - preserving what works while planning for future improvements. As legislators gear up for the next session, the lesson from Waco's success is clear: economic development isn't about government choosing winners and losers. It's about communities having the tools, flexibility, and resources to compete for opportunities that generate prosperity for all Texans. That's worth protecting and worth improving in future sessions. n

Why Continued Focus Matters: The Road Ahead

As we move through the interim and prepare for the 90th Legislative Session (2027 will be here before you know it!), maintaining a focus on improving our economic development programs remains essential. The competition for business investment is becoming fiercer each year. Other states are not standing still; they are enhancing incentive programs, streamlining permitting processes, and investing heavily in workforce development and infrastructure. Waco's recent successes show what's possible when state and local tools collaborate effectively. However, these victories shouldn't lead to complacency. The underperformance of the JETI program indicates that creating an economic development tool isn't enough. The program must genuinely address business needs and operate efficiently. The lack of funding for the Capital Access Program means rural Texas communities miss out on resources their counterparts in other states readily offer. During the interim period, the TEDC and local communities must work with legislators to address concerns about economic development programs while preserving the flexibility and local control that make them effective. Sharing both success stories (like Waco's CEDA award) and honest assessments of what's not working (like JETI) will help lawmakers understand which reforms are needed and which restrictions would be counterproductive. For Waco specifically, the ongoing $1.4 billion downtown redevelopment project, a 12 to 20-year initiative that will reshape the urban core with a new city hall, convention center, town square, ballpark,

The Texas Economic Development Council (TEDC) is an Austin-based, statewide, non-profit professional association dedicated to the development of economic and employment opportunities in Texas. Our diverse members share a common goal: bringing new investment and jobs to Texas.

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PROPOSITION 1 APPROVAL SECURES NEW ERA OF STABILITY FOR TSTC

by Daniel Perry, Communication Specialist, Texas State Technical College

The Texas State Technical College (TSTC) System received a powerful vote of confidence during November’s general election as more than two million Texas voters approved Proposition 1. This milestone accentuates the statewide recognition of TSTC’s proven impact on the state’s economy and workforce. In the past decade, TSTC has graduated more than 33,600 students, supplying industry partners with skilled, job- ready talent. With a 94% placement rate across its programs, the college continues to demonstrate a strong return on investment for students, employers, and the state. It reinforces why Texans overwhelmingly supported continued growth and funding for the system. “We have never had a reliable source of capital funding,” said Joe Arnold, TSTC’s deputy vice chancellor for Government Relations. “As a state agency, we cannot levy taxes, so we do not have the tools that school districts and community colleges have to raise money for capital funds.” The proposition creates two pools of money: an $850 million Technical Institutional Infrastructure

Fund (TIIF) managed by the Texas Comptroller of Public Accounts, with its interest going into the Available Workforce Education Fund that only TSTC’s Board of Regents can seek to draw down from. The first interest from the endowment is not expected until early 2027, with disbursements expected each year afterward. The funding will be for all of TSTC’s 11 campuses. “The ability to plan is a game changer for us,” said Beth Wooten, provost of TSTC’s Waco campus. “With this opportunity, we can finally prioritize long-deferred maintenance projects that will modernize our existing facilities while also strategically preparing for new buildings. All of this positions us to grow by increasing capacity and placing more Texans in high-paying jobs.” When voters approved the measure, it signaled that TSTC could move forward with greater certainty, accelerating future planning. The decision strengthens the college’s ability to respond quickly to industry needs, ensuring Texas employers continue to have access to a steady pipeline of highly trained graduates. Richard A. “Tony” Bennett, president and CEO of the Texas Association of Manufacturers, said the college’s growth had been hindered with no access to property tax money and by the need to go to the state legislature each session to secure funding. Leaders of several of the state’s business

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and industry organizations advocated for TSTC. “We cannot grow the Texas economy without growing TSTC,” Bennett said. “We also support the other community colleges with their career technical programs. TSTC is valuable in that it narrows down to specific trades in high demand and short supply for young people and returning veterans to get in, get an education, and get out in the workplace.” Bennett said there will be plenty of work for graduates to do, especially in artificial intelligence, industrial maintenance, and power distribution in modernizing the state’s transmission grid and distribution lines. “That project is going to be massive and you just don’t walk in and start with high-powered wiring of that substantial voltage without being heavily trained,” Bennett said. The legal structure of the endowment is designed to safeguard and focus the funds. Interest generated can only be used for deferred maintenance, purchasing land, building, and upgrading infrastructure and acquiring instructional equipment. The proposition guarantees accountability by legally restricting the use of funds for general operational costs like advertising, marketing, salaries, and travel.

“It positions the college to respond to needs that will arise in the Greater Waco region,” Arnold said. “We have a lot of manufacturers moving to Waco. Access to this reliable source of capital funding will now allow us to work with community leaders to plan for the growth in the Waco region.” The idea of an endowment began in fall 2022 with a presentation made by TSTC leaders to business association representatives in Austin. A question was posed on how to scale up the work that TSTC does to train more people. Legislation seeking a proposition question was approved by both chambers of the Texas Legislature in 2023, but there were differences in the bill, Arnold said. The legislative session ended before a compromise could be reached. An effort was made to get the endowment proposition on the ballot during this year’s legislative session. “You never take anything for granted,” Arnold said. “With so many new members in the legislature, our advocates had to work harder this time.” TSTC was established by the state Legislature and opened for its first students in 1965. The campus has locations spread across the state from Sweetwater to Marshall and extending to Harlingen in the south. The Waco campus serves as the administrative home. TSTC is the only state- supported technical college system in Texas.

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TSTC offers the Money-Back Guarantee for students enrolled in eligible technical programs. Students need to complete the HIRE 1100 class and receive a job offer within six months of graduation. Tuition can be refunded if students can prove the requirements were not met. TSTC was the first higher education institution in the United States to adopt a returned-value funding model. This model calculates the economic value stemming from five years of graduate wages. This value is multiplied by a funding rate equaling the amount of state funding to be received in the state’s two-year budget cycle. The funding formula concept was created in 2011 during the 82nd Texas Legislature, which recommended that the Texas Higher Education Coordinating Board work with TSTC to recognize graduates’ job placements and earnings. TSTC’s Waco campus offers more than 20 in- person and hybrid programs, along with several online options. These programs are strategically designed to align with the dominant industries of Central Texas, including aerospace, advanced manufacturing and transportation. The campus itself is a blend of history and progress, featuring both structures from its days as Connally Air Force Base, and newer facilities, such as the Construction Technologies Center scheduled to open in early 2026.

As of the spring semester 2025, the Waco campus had the largest enrollment among all of TSTC’s campuses with more than 2,900 students, according to the college’s Business Analytics and Reporting department. “Waco and McLennan County are experiencing tremendous growth, and it’s important that TSTC grows right alongside them,” Wooten said. “The TIIF provides the stability and support we need to plan for that future with confidence. It ensures we can expand our capacity, strengthen our programs, and continue meeting the evolving needs of the industries we serve.” For more information on TSTC, go to tstc.edu. n

With multiple locations across the state, Texas State Technical College helps to strengthen the Texas workforce with highly skilled, technically competent graduates. Operating on a unique funding model based on student employment outcomes, the college is celebrating 60 years of service to the state of Texas in 2025. For more information, visit tstc.edu.

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McLennan County Continues Critical Water Supply Planning Efforts

by J. Tom Ray, PE, D.WRE, Partner at Hicks-Ray Associates & Honorable Scott Felton, McLennan County Judge

Waco, McLennan County, and the entire state of Texas stand at the brink of significant water-supply challenges. These pressures are driven not only by rapid population growth—especially along the IH-35 corridor—but also by emerging, high-demand users such as data centers. McLennan County has been actively involved in county-wide water planning. In 2014, Waco and McLennan County formed the McLennan County Water Resources Group (McL WRG), an informal, non-regulatory gathering of city managers, water system managers, the Brazos River Authority, Baylor University and others with area water knowledge to examine the County’s water needs, propose a feasible approach to reduce arsenic levels in several rural systems, and develop McLennan-County-specific water plans. During the 2025 session of the Texas Legislature another tool was provided for regional water planning—and McLennan County took full advantage by supporting its formation, encouraging participation, and taking a place on the Board of Directors.

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"If you do not have adequate water, you have to limit yourself in the kind of companies that you bring to your town, which could limit the opportunity for higher-paid jobs for our citizens and our community," McLennan County Judge Felton stated in support of the CTWA.

CTWA Facts: • It is a regional water authority • It will not have taxing authority • It will be located in the counties identified in the enabling legislation • It is a nonprofit corporation to act on behalf of local government • Its founding sponsors are Bell and McLennan Counties, Clearwater Underground Water Conservation District, and the Bell County WCID #1 • It will finance projects using bonds or other revenue- based obligations financing and would be eligible for grants and loans Over time, as more information about the Alliance becomes available, the CTWA will have multiple participants and members. Water purveyors, cities, water districts, and others with water local interests, from several central Texas counties, including Bell, McLennan, Falls, Milam, Coryell, and Lampasas, have expressed interest in joining the Alliance.

During the latest session of the Texas Legislature, a new regional water alliance was established to facilitate the cooperative development and regional use of necessary water- supply projects. The Central Texas Water Alliance (CTWA) is a subdivision of the State of Texas and was created by the 89th Texas Legislature with the ability to develop water-supply, undertake regional water-supply projects, transport water, and plan, develop, build and operate water-supply systems and wastewater treatment facilities. Senate Bill 1194 (SB 1194) establishes the CTWA “to help local governments and water districts work together in meeting long-term water needs through cooperation—not bureaucracy,” said State Rep. David Spiller, serving Texas District 68. “With the Governor’s signature, this legislation is now in effect, ensuring Central Texas is better prepared to manage and deliver water resources efficiently and responsibly for generations to come.” The CTWA recently began its governance efforts. Following the statutory requirements of SB 1194, a Board of Directors has been established, bylaws initially approved, and initial guidelines on CTWA Membership (Sponsor) were approved. Sponsors can include local government as well as private entities. Non-voting membership categories for Affiliate and Ex Officio participants have also been established. The current Board Members are Judge David Blackburn of Bell County, Judge Scott Felton of McLennan County, Dirk Aaron, former manager of the Clearwater Groundwater Conservation District, and Rick Garrett, the General Manager of Bell County WCID #1. The Brazos River Authority is an important supporting, ex officio member.

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The Alliance will have the authority to issue bonds for water infrastructure projects and can impose fees and assessments to support its operations. However, officials stressed that there will not be any tax increases, as the group will operate solely on administrative fees. The Alliance has been supported by a broad spectrum of entities, both public and private, to include Bell County, McLennan County, Lampasas County, Fort Cavazos, the Brazos River Authority, Clearwater Underground Water Conservation District, Bell County Water Control and Improvement District No. 1 (WCID 1), multiple cities, multiple water-supply corporations, and private entities. McLennan County Water Resources Group (McL WRG) Participation in the CTWA is nothing new for McLennan County. The county is unique in Texas for its collaborative approach to helping resolve water issues. Working with Waco and other cities, both large and small, and rural water systems throughout the County, meets to discuss and take action on water problems. This cooperation became critical in 2006 when the EPA set a new arsenic standard of 10

parts per billion—roughly equivalent to a single drop of ink in a large backyard swimming pool. Several rural systems that had relied on groundwater for decades found themselves marginally exceeding the new limit. In response, the McL WRG was formed in 2014 through the leadership of County Judge Scott Felton and then-Waco City Manager Wiley Stem. Since its inception, the group has provided a vital forum for cities and water systems across the County to work together in addressing current and future water needs. The McL WRG applied for and received WaterSMART grant to prepare three key water planning documents: • The McLennan County Drought Contingency Plan; • Conjunctive Use of Groundwater and Surface Water Plan • Arsenic Mitigation Guide for rural, arsenic- impacted systems. Further, McLennan County Commissioners contributed $4 million toward rural water system projects to mitigate arsenic concentrations and

“This moment has been a long time coming,” said Bell County Judge David Blackburn. “There is no issue more important to all of us than water, and I’m confident the CTWA will positively impact not just the residents of Bell County, but the entire region for generations to come.”

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provide emergency generators. The McL WRG will play a crucial role in reviewing and recommending potential CTWA projects to address McLennan County water needs. Brazos G Regional Water Supply Planning McLennan County’s regional outreach stretches beyond the McL WRG to include two seats on the Brazos G Regional Water Planning Group, held by McLennan County’s Judge Scott Felton and the City of Waco. They help to ensure water needs and the water strategies to meet those needs remain based on McLennan County needs, planning and input into the state’s Brazos G Water Plan. Summary From ongoing efforts here in McLennan County with the McL WRG, to board membership on the recently established CTWA, to a seat at the planning table for the Brazos G Regional Water Planning Group, McLennan County has and continues to address the current and future water needs of McLennan County. n

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SHAPING WACO’S FUTURE: WHY BUSINESS LEADERS ARE STEPPING INTO PUBLIC POLICY

Across Greater Waco, business leaders are stepping into roles that influence how our community grows — from school boards to zoning commissions to workforce initiatives. Their professional experience gives them a front-row seat to the challenges and opportunities facing families and employers, and many feel a responsibility to give back. We sat down with a group of local leaders who are turning their day-to-day expertise into meaningful civic impact, asking what motivates them and why business engagement in public policy matters.

Taylor Bledsoe President, Sturdisteel Grandstands & Press Boxes Waco ISD School Board

Jed Cole Managing Partner, Brick Street Fund Waco Planning & Zoning Commission and Waco Metropolitan Planning Organization

Frank Graves Dean of Workforce and Public Service, McLennan Community College McGregor ISD School Board

Leah Cox Broker/Owner, Kelly, Realtors Greater Waco Chamber Public Policy Chair

Jason Lavender Executive Vice President, Board of Directors, Director of Strategic Initiatives,

Keith Helpert Owner & President, K4 Construction Robinson ISD School Board

TFNB Your Bank for Life Lorena ISD School Board

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WHY SHOULD BUSINESS-MINDED PEOPLE BE INVOLVED IN PUBLIC POLICY?

JED COLE

Waco is growing fast, and the perspectives of those who invest locally and build their lives here can help guide that growth in a way that protects the character of our hometown. People working in business see firsthand what families and employers need to thrive — from infrastructure to housing to vibrant commercial areas. When community members with practical experience are willing to listen, collaborate, and contribute, it helps ensure decisions are grounded in what actually works for Waco. Involvement in public policy provides an opportunity to advocate for community-wide priorities related to economic development, education, and workforce development at the state and national levels. These efforts ensure that our community’s needs are represented and help shape its ongoing success.

Public policy works best when boards, legislators, and other stakeholders come together and consider a broad range of perspectives and interests. Policymakers’ lived experiences, including their occupation, inform their perspectives on many issues. Business leaders absolutely need a seat at the table, as they understand how budgets and fiscal responsibility both protect the needs and interests of the taxpayers and allow for strategic investments in the local, state, or federal

economy. As a business owner, I am faced every day with the challenge of doing right by people and by my business. That skill set is of vital importance when making large- scale, public policy decisions.

TAYLOR BLEDSOE

LEAH COX

Because the decisions being made at the local, state, and national level affect every part of how we live, work, and serve our communities. When business-minded people stay engaged, the conversation becomes more balanced and grounded in real-life experience. We see firsthand how policy affects people. From hiring to housing to lending and development, we deal with the day-to-day impacts. Our perspective helps ensure policies actually work in the real world. We care about strong, healthy communities. Thriving businesses create jobs, stability, and opportunity. When we’re involved, we can help shape policies that support growth instead of slowing it down. Business people look for efficient, practical, and sensible ways to solve problems. That mindset brings much-needed accountability and clarity to policy conversations. If we’re not at the table, someone else is; and they may not understand the realities our industries and communities face. Engagement doesn’t have to be complicated — voting, staying informed, and speaking up when it matters makes a difference. At the end of the day, good policy doesn’t happen by accident. It happens when people who care about their communities — and understand how things actually get done — show up.

FRANK GRAVES

KEITH HELPERT

Business-minded people should be involved in public policy because they can provide real-world expertise to support economic growth and job creation. In the business world, they must focus on maximizing efficiency and results, which gives them the ability to help make government programs more effective and hold them more accountable. They can also help bridge the gap between the public and private sectors, ensuring that public policies are realistic and business-friendly. With innovative thinking, they can bring creative solutions to the table for complex social and economic challenges. Experience in managing budgets helps promote fiscal responsibility and smarter use of public funds. Overall, their involvement in public policy helps governments create policies that strengthen the economy, encourage innovation, and improve citizens’ quality of life.

JASON LAVENDER

Too often, people share opinions on social media but take little or no action in the real world. Public policy provides a meaningful way to turn beliefs into action—aligning decisions with both personal and corporate values. When business leaders engage in policy, they help shape solutions that impact communities, industries, and the economy. Rather than being passive observers, we should identify issues we’re passionate about and actively contribute to creating practical, sustainable solutions. This is how we move from conversation to real impact.

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