Monday, August 29, 2011

Texas incentive funds touted by Perry draw praise, criticism

With Texas Governor Rick Perry's entry into the presidential race, the tools used in offering state incentives for businesses to relocate and add jobs has come under scrutiny.

The Texas Enterprise Fund was created in 2003 to provide money to attract companies to the state or help them expand. As of June 30, the fund had committed nearly $440 million to about 100 corporations, according to the governor's office. A separate Emerging Technology Fund has awarded $370.5 million to new ventures and university research programs since its formation in 2005.

As Perry campaigns for president, he is trumpeting Texas' unmatched success in creating jobs and the importance of the funds in maintaining Texas' competitive edge.
But the funds have also come under fire for falling short of delivering on promised job gains and creating an appearance of political favoritism because Perry has accepted campaign contributions from companies that received taxpayer funds. There are also complaints that Perry exercises too much control over the funds.

More here.

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