Saturday, April 4, 2015

Governor Perry's $35 million: No Application Necessary for Carlyle

Texas Governor Rick Perry granted The Carlyle Group's Vought Aircraft Industries $35 million to create 3,000 new jobs for Texans.  Vought qualified the deal as being contingent upon the company getting other subsidies for its operations in the Dallas-Fort Worth area.  The public's $35 million had no contingencies.

The Dallas Business Journal reported in 2007 Vought had no intention of providing the committed jobs and would eventually return the funds per the agreement.

"... expanding in Dallas is unlikely, as are plans to buy the old Naval Air Station from the U.S. Navy. So a $35 million cash grant in 2004 from Gov. Rick Perry's Texas Enterprise Fund most likely will be repaid." 
I shared my concerns with Rep. Drew Darby (R-San Angelo) in 2009.  While he spoke words of oversight an audit of the Texas Enterprise Fund was not conducted until 2014.

The Carlyle Group had $35 million in public funds for six years, three of which they had no intention of fulfilling their stated commitment.

This is one of the sadder stories in our Government-Corporate Monstrosity.  Consider the elements:  No application, contingent commitment to provide jobs, no legislative oversight, $35 million in public funds for six years with negative performance, under calculating funds is due back to taxpayers.  Governor Rick Perry's signature economic development deal never soared.  However, the Carlyle Group did quite well thanks to Texas taxpayer largess.