A study of 50 companies awarded $368 million from the Texas Enterprise Fund showed that 33, or two-thirds of them, failed to create the jobs they promised in 2009.
The Associated Press is reporting that Texans for Public Justice, which has been tracking the performance of companies who receive taxpayer money from the Enterprise Fund, said the 50 companies had created 30,381 jobs of the 49,581 they promised to create. The state canceled six enterprise fund contracts and fined companies a total of $2.8 million through June 17 for failing to meet job creation goals, according to the liberal watchdog group, which tracks government corruption and corporate abuse.
The enterprise fund has been an issue in the governor's race, with Democrat Bill White in May calling for an independent audit of the spending. Meanwhile, Republican Gov. Rick Perry has touted it as an economy booster nurtured by his administration, as the AP explains:
(Perry) points to the fund as an effective tool to help lure companies to the state. The fund is a deal-closing account created by the Legislature at Perry's urging. The governor frequently credits the fund for helping to create some 53,000 new jobs in Texas and generating billions of dollars in capital investment.
State-aided companies are creating fewer jobs at a lower rate than they were before, based on another study of the Enterprise Fund by Texans for Public Justice released in January.
Contact Mark Lisheron at 512-299-2318 or mark@texaswatchdog.org.
Photo of a time card by flickr user TheGoogly, used via a Creative Commons license.
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