More on the Texas Enterprise Fund

The Dallas Morning News has a story (“Audit: Perry’s business fund gave millions to firms, universities that never sent an application“) that suggests that funds from the Texas Enterprise Fund (TEF) was being distributed by the Office of the Governor much less cautiously than the State Auditor considered prudent. The report from the Texas State Auditor identifies a number of way in which the funds were distributed without adequate documentation.

One of the most significant findings (from page 7 of the full report) was that early in the program’s development TEF funds were distributed without an application.

During the 2004- 2005 biennium, the Office [of the Governor] did not require recipients to submit an application and/or did not require recipients to create direct jobs for award agreements associated with 11 projects. The awards associated with those 11 projects totaled $222,281,000, or 44 percent of the $505,838,696 in Texas Enterprise Fund awards the Office made between September 2003 and August 2013.

That’s a lot of money going out the door with very little systematic analysis or documentation. On one hand, many Texas state employees will feel some sympathy with the Office of the Governor because we’ve grappled with the elaborate process behind spending state dollars. On the other hand, you can not help but question why the governor’s office felt it could dish out over $222 million without meticulously detailing and documenting the process. As someone who has been tormented for forgetting to get the sales tax removed from the bill for feeding a job candidate I’m amazed that the people dispensing the TEF were not more systematic in their oversight of much larger sums.

The TEF’s future was already in doubt. Some Texans are questioning the wisdom of getting the government involved in subsidizing some businesses. Others support the idea in theory but question the way in which the funds have been distributed. It’s a good bet that the TEF will be abandoned or transformed when the legislature meets next year. The questions about the fund are closely identified with Rick Perry and the next governor will want a fresh start.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: