Tuesday, November 16, 2021

Youngkin Shafted Texas Taxpayers

Virginia's Governor elect Glenn Youngkin has a bad track record in Texas.  He headed The Carlyle Group's infrastructure efforts.  Carlyle backed out of its lead developer role for the Port of Corpus Christi;s Harbor Island expansion.  That 2019 move left a potential $400 million hole for the public-private partnership. 

It wasn't the first time The Carlyle Group failed to meet its Texas commitments.  Carlyle's 2009 Annual Report stated:

"in March 2010, Carlyle agreed to sell Vought to aircraft components maker Triumph Group in a transaction worth $1.44 billion.  

Carlyle's executive leadership decided not to refund Texas taxpayers a mere $35 million out of that nearly $1.5 billion proceeds for failures to meet Vought's promised jobs target.  The executives included:

 The three founders are joined by Daniel F. Akerson and Glenn A. Youngkin on the firm’s executive committee.  

The operating committee is led by seven seasoned Carlyle professionals: Glenn A. Youngkin, Chair; Jeffrey W. Ferguson; David M.Marchick; Peter H. Nachtwey; Michael J. Petrick; Bruce E. Rosenblum; and Gregory L. Summe."  

The name on both groups is the newly elected Governor of Virginia representing the Red Team, Glenn Youngkin..

Youngkin helped short Texas taxpayers as Carlyle kept $35 million over six years.  Not only did it not come close to their employment promises, they cut 35 jobs during that period.  Glenn and Carlyle received $1 million from taxpayers for each Texas Vought job they cut during the performance period.

The average citizen doesn't get to keep $35 million over six years for completely failing to meet an incentive.   Carlyle knew it would not add promised Texas jobs in 2006.  That was four years before it faced the prospect of making minimal repayment.  

Why does this matter?  Youngkin will be in a position to push public-private partnerships and jobs incentives as Virginia Governor.  He has a bad track record in both areas.

Update 7-16-22:  American University and just hired former Carlyle Group Managing Director David Marchick as Dean of AU's business school. Do they have a course on milking state economic development funds?