In the late 1970s, Texas experienced a remarkable spurt of migration-induced population growth. One of the main reasons for the surge in migration was the much-touted Texas business climate. This part of the Sun Belt was awash in energy and capital: oil prices had tripled. In those days, we considered ourselves the "economic flagship for the nation." The most difficult problem was what to do with the billion-dollar budget surplus caused by the unexpected rise in tax revenues due to the increase in oil prices.
