A recent report found that Texas’ long-lasting drought impacts could lead to a long-term water supply deficit that would directly impact the state’s economy. Without investment, researchers say the Lone Star State could soon lose millions and perhaps billions a day.
The report by the Center for Energy Studies at Rice University’s Baker Institute and commissioned by Texas 2036, said the state is economically vulnerable should a severe drought occur. Texas 2036 is a nonpartisan nonprofit organization focused on shaping Texas’ future.
By 2070, Texas’ water supply deficit is estimated to be nearly 6.9 million acre-feet, enough to supply as many as 20.7 million homes for a year. Researchers see the state’s current water supply portfolio as a challenge and are pushing lawmakers to diversify the supply.
If Texas fails, researchers estimate that if a years-long drought similar to that of the 1950s happened, then as soon as 2030 Texas will endure $160 billion in annual GDP losses, 800,000 jobs lost, and an exodus of hundreds of thousands of people leaving for other states.
A drought would also impact the state’s ability to generate energy, costing millions and perhaps billions in economic damages per day.
The report also noted that Texas’ second water infrastructure challenge involves addressing problems attributable to aging systems. It said that barring significant infrastructure investments, over the next 15 years, deteriorating water and wastewater systems will contribute to nearly $320 billion in GDP losses for Texas. Officials say that amount is “equal to the size of the state’s current two-year budget.”
As a solution, researchers propose the use of nearly $154 billion to assist the state’s infrastructure needs over the next 50 years. New water supplies will require $59 billion of that total, $74 billion for fixing deteriorating water systems and $21 billion for fixing broken wastewater systems.
Current funding projections show a major gap in the necessity. The state and federal funding are only expected to provide $40 to $45 billion of that, and the report said a long-term gap of more than $110 billion remains.
Texas 2036 is urging state lawmakers to prioritize water infrastructure spending during the upcoming legislative session.