Texas Enterprise Fund report focuses on money recouped from deals gone bad
Incentive deals that had roles in luring big-name companies like Apple Inc. to Austin and Toyota Motor Corp. to Plano have generated the bulk of publicity in recent years for a top state economic development tool: the Texas Enterprise Fund.
But the outcomes of deals that ultimately flopped are being touted as equally strong selling points for the fund, at a time when proponents, including Gov. Greg Abbott, are advocating for more taxpayer money for it.
A new report to the state Legislature from Abbott’s economic development office, which oversees the fund, points out that about $36 million has been returned to the state over the past two years because of so-called “clawback” provisions after companies failed to deliver on commitments, or because of amendments to and terminations of old deals. During roughly the same period, the fund awarded about $61 million in incentives for new economic development projects, which are projected to create a combined 16,600 jobs.
John Wittman, a spokesman for Abbott, said the report illustrates the rigor that Abbott has brought to oversight of the fund, which was criticized as having lax controls under former Gov. Rick Perry in a 2014 state audit and has been criticized in some quarters for doling out “corporate welfare,” even as economic development officials statewide consider it essential.
Read more: https://www.statesman.com/news/20190208/texas-enterprise-fund-report-focuses-on-money-recouped-from-deals-gone-bad