Audit of Texas Enterprise Fund

AUSTIN, May 26, 2010 - Candidate for Texas Governor Bill White has called for a audit of Governor Perry’s Texas Enterprise Fund that has channeled millions of tax dollars to larger corporations.

According to Bill White, Rick Perry is using taxpayer dollars from the Texas Enterprise Fund to subsidize companies that he selects. He’s even drained payroll tax dollars from small businesses and then handed the money over to larger competitors.

Texas taxpayers deserve to know whether we have gotten our money’s worth from each and every dollar handed out by Rick Perry.

Perry has handed out taxpayer money with questionable results. Some examples:

• $35 million subsidy for biotech firm Lexicon Genetics, a company whose investors have ties to Perry's political campaigns. Perry said the subsidy would increase employment, but after the firm received the subsidy, they laid off employees.

• $20 million subsidy for failed sub-prime lender Countrywide Financial, a key player in the global financial meltdown.

Texas taxpayers deserve independent, audited answers to important questions about the Texas Enterprise Fund.

• What was the process for awarding subsidies?

• Were subsidies necessary for their intended purposes?

• Did companies live up to their promises?

• Were lobbyists paid to influence decisions about where the money would go?

• Did subsidized firms compete with other Texas businesses?

These questions can only be answered by an independent audit of the fund.