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Texas' Diverse Economy May Soften Oil Price Slump

A photo taken on June 6, 2013 shows a general view of French oil giant Total's Texan plant in Port Arthur. (Marc Preel/AFP/Getty Images)
A photo taken on June 6, 2013 shows a general view of French oil giant Total's Texan plant in Port Arthur. (Marc Preel/AFP/Getty Images)

As analysts remain concerned over tumbling oil prices, lawmakers in Texas — the leading producer of oil in the U.S. — are beginning to shape their next two-year budget.

Unlike states like Alaska, where oil industry taxes account for 89 percent of the its operating revenue, Texas has been working to diversity its economy since the 1980s oil bust.

Today, oil and mineral-related revenue makes up 10 percent of the state’s total tax collections, compared to 20 percent nearly 30 years ago.

Here & Now’s Robin Young spoke with reporter Ben Philpott of Here & Now contributor station KUT in Austin for a look at how Texas has reshaped its economy.

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