Representatives from Texas’ business, local government and higher education sectors argued Tuesday that the state’s new immigration-enforcement law, which is slated to take effect Sept. 1, could do billions of dollars in damage to the Texas economy.
Using data from the 2015 American Community Survey and the Bureau of Economic Analysis, the Reform Immigration for Texas Alliance — a group made up of 40 state-based immigrant and civil rights groups — estimated during a Tuesday press conference that the state stands to lose roughly $223 million in state and local taxes and more than $5 billion in gross domestic product under Senate Bill 4.
The law, which was signed by Gov. Greg Abbott in May and seeks to outlaw “sanctuary” jurisdictions that don’t cooperate with federal immigration officials, would also allow local police officers to ask about a person’s immigration status when they are detained — not just when they are charged with a crime.
“We estimate those costs as they relate to jobs, earnings, taxes and GDP if 10 percent of undocumented immigrants were to leave Texas,” the group said, calling that 10 percent figure a conservative estimate. The group analyzed the top 10 industries that benefit from undocumented labor and used Harvard University economist George Borjas‘ undocumented population analysis in its research, according to the methodology outlined in the study.
The economic argument isn’t a new one for opponents of the law; several Democratic state lawmakers tried and failed to convince their colleagues of its merit during this spring’s regular legislative session. State Democrats also called for an update to a study released in 2006 by former Texas Comptroller Carole Keeton Strayhorn. That analysis showed that undocumented immigrants who lived in Texas in 2005 added $17.7 billion to the state’s economy.
In a statement Tuesday, representatives from local chambers of commerce at the news conference went after the lawmakers who championed the legislation, calling them dishonorable.
“Each of you standing with us have a big job to do,” said Ramiro Cavazos, the CEO of San Antonio’s Hispanic Chamber of Commerce. “And that it is to protect this economy for our children and our grandchildren.”
The Houston Hispanic Chamber of Commerce, the U.S. Bilateral African American Chamber, the United Chamber of Commerce Corpus Christi and the Rio Grande Valley Chamber of Commerce were among those represented at the news conference.
The Chron adds some details.
Paul Puente, executive secretary of the Houston Gulf Coast Building and Construction Trades Council, said many undocumented construction workers are already packing up and leaving with their families to neighboring states such as Oklahoma and Louisiana ahead of SB4’s implementation on Sept. 1.
An analysis of data from the U.S. Census, the Bureau of Economic Analysis and the Institute on Taxation and Economic Policy found that if 10 percent of undocumented immigrants leave Texas, the state would forfeit about $190.7 million in federal tax revenue and $223.5 million more in state and local taxes.
The disappearance of those estimated 95,000 undocumented workers would also result in nearly $2.9 billion in lost wage earnings. The analysis also found that the state would lose an additional 70,000 jobs dependent on undocumented consumers, with an estimated $2.4 billion more in lost wages.
The researchers said the ripple effect throughout the economy could reach between $9.2 billion and $13.8 billion.
That’s a lot of money, and it doesn’t include things like tourism and conferences. You can dispute the figures if you’d like, but the broader point is that maybe it’s a bad idea to pass a law like this that so many people think with justification will hurt themselves, those close to them, and the state as a whole. There was plenty of testimony to this effect in the hearings, from law enforcement and religious groups and business interests and just plain folks, and there’s the lived experience of other states who have done this. It was just that the Republican majority refused to listen. And that job that Ramiro Cavazos mentioned that we all have to do includes remembering who supported and who opposed this terrible law when the next elections roll around. The Current has more.