The Lone Star State finds itself in the midst of a great transition. No longer the rustic frontier state of myth and legend, Texas is a complex, highly urbanized society that is rapidly replacing old dreams with new ones. Faced with increasing demands on state services and with unreliable revenues tied to an unsteady oil industry, Texas must make hard decisions for its future.This volume seeks to appraise Texas as it is today and to assess the direction in which the state is headed. The first part of the book deals with the Texan people—demographics, economic changes that have affected Texas’ political economy over the past decades and continue to shape its future, and the shifting style of Texas politics and its potential for change.Part two explores seven major policy areas: management of water resources, energy policy, educational reform, funding of higher education, highway policy, crime and the penal system, and welfare reform.By seeking to understand the status and prospects of the state in terms of its changing political economy, this book will provide readers with insights into the challenges and opportunities facing Texas as it moves into the twenty-first century. The excellent case studies of Texas policy areas will be a most valuable resource for students and scholars of state and local history and comparative politics, policy makers, journalists, and all Texas citizens who are concerned with the problems that lie ahead.