“California and Texas have different strengths. Texas has a lower cost of living and fewer regulations, while California has a more educated workforce and availability of venture capital, said Ray Perryman, a Waco, Texas-based economist. “Both states have fiscal challenges, though California’s is somewhat more severe,” Perryman said by e-mail. “Texas has had the lead in that arena for some time, but long-term investments in education and infrastructure (primarily roads and water resource development) will be needed to sustain it.”