More than one thousand attendees at the Hidalgo County State of the County address mingled inside the McAllen Convention Center before reflecting on major milestones in economic development on Wednesday night. 

Hidalgo County Judge Richard F. Cortez told the Rio Grande Valley Business Journal before taking the stage that his message to business leaders was to work collaboratively to succeed in a competitive world. 

“We live in a very strategic area of the world. We have a lot to offer, but we’re the best-kept secret. We want to make sure that we think reasonably, that we have a strategic plan that’s a regional strategic plan, and know that the best way to move forward is together,” Cortez said. 

But there are challenges ahead, too, including reliable access to water, electricity, and workforce development. 

“We need to have skilled labor because we want to offer smart labor, not cheap labor,” Cortez said. “If we offer cheap labor, there are a lot of other areas that are cheaper than us. We have to give [businesses] value for what we offer. And we’ll get there. We’re getting there.”

RioPlex and brain drain

Cortez nodded to the concept of RioPlex, which is how leaders want to rebrand the Valley’s industrial sector, emphasizing the region’s proximity to the Rio Grande River and the growing metroplex of Texas cities and the binational hubs of Matamoros and Reynosa in the Mexican state of Tamaulipas. 

The population of RioPlex is notably younger than the rest of Texas and the U.S. That is a key economic indicator and could drive growth – if the educated youth decide to stay or return to the region someday.

When there’s an outflow of more educated workers leaving compared to individuals with college degrees moving to a community, that’s known as a brain drain. 

“On the brain drain, we’re in a better position than we were previously. We’ve got a lot of great universities here that are putting out great talent, and industry is realizing that,” said Josh Vasquez, director of workforce development for the McAllen Economic Development Corporation. 

McAllen EDC recently participated in the Home to Texas workforce development program that brings back individuals who left their hometown to attend college. The program partners talent with internships at local businesses to offer them insight into the local labor market opportunities.  

Financial Stability and Infrastructure Growth

Cortez highlighted the widening of Mile 6 from two lanes to five lanes and drainage improvements in Hidalgo County Precinct 1 near the city of Weslaco, as well as a 16-mile-long hiking and bicycling trail that runs between Weslaco and San Juan. 

Another of the county’s roadway expansion projects near the city of Peñitas may have enabled the city to attract new retailers such as Home Depot. 

Other county projects included a wellness and recreation center near Weslaco, a health clinic in San Carlos, and more hiking and bicycling trails throughout rural Hidalgo County. 

The Hidalgo County Drainage District 1 is also working on a future wastewater treatment plant that would enable the county agency to treat and turn drainage water into potable drinking water. 

Cortez also touted Hidalgo County’s general fund balance, otherwise known as a rainy day fund. The county’s savings will have increased from $61 million in 2019 to an estimated $150 million by the end of the year. That’s a feat because the rule of thumb is to keep a fund balance of between 20% to 30% of the annual budget. But Hidalgo County’s fund balance is now more than 50% of its annual budget. 

“As the county judge, I spend a lot of time thinking about our history and who we are as a community. And more importantly, where we’re going. We have some pretty significant challenges that we must confront. Chief among those is poverty,” Cortez said. “It is somewhat ironic that while we serve [as] the chief economic engine of the Texas economy, we find ourselves constantly battling poverty in our community.” 

Poverty and Future Challenges

Hidalgo County’s poverty rate was estimated to be 26.9% in 2023, down from 34% in 2013. By comparison, the average poverty rate nationwide is 11%. 

For that reason, Hidalgo County convened the Economic Prosperity Task Force, comprising mostly volunteers, including many business executives. 

Business leaders, such as Joaquin Spamer, CEO of Commodities Integrated Logistics, or CIL, were instrumental in the development of RioPlex as a new brand for the region’s industrial sector, and the CEO roundtable was tasked with moving forward with ideas to alleviate poverty on the border. 

“No one is next to Mexico and has all the assets that we have here,” Spamer said during a video played mid-speech. “We realized that we had an identity crisis. Nobody outside of the Rio Grande Valley knew who we were.” 

And that’s why RioPlex is an effort to attract businesses to the region instead of individual cities or communities. 

“We believe that working regionally gives us the best opportunity of success; let’s bring them here. Once we get them here, we’ll fight over where they want to go,” Cortez said, laughing.