Researcher Spotlights ‘Invisible Incentives’

The Texas Enterprise Fund took a hit for lack of transparency in a new research paper from the National Freedom of Information Coalition.

The paper by journalist Steve Miller is titled “Invisible Incentives: How Secrecy Impedes Evaluation and Accountability of Economic Development Subsidies.” Part of the paper spotlights the Texas Enterprise Fund, which the Legislature created in 2003 to provide taxpayer money to companies in exchange for the promise of jobs.

“But in numerous cases, the money has been paid and the companies left shortly after the deal was completed, taking the jobs with them,” the paper’s author writes. “The public rarely hears of it, and the money spent is rarely recouped, although because of the opacity surrounding the TEF, it’s difficult to discern if any financial recovery by the state is achieved.”

The problem is the same across most states, according to the paper, which concludes with this recommendation: “Opening the records, fully, is the best start to handing the decision to the public.”

Renae Eze, Gov. Greg Abbott’s spokesperson, responded in a statement to the researcher’s assertions.

“When he first entered office in 2015, Gov. Abbott established procedures to ensure the protection of taxpayer money and transparency in the spending process, including changing the Texas Enterprise Fund requirements to be performance-based, meaning these companies must first meet their contracted job requirements before any state money is paid out,” she stated. “Companies must also remain and maintain those jobs for an extra year on the contract period. If a company falls short, it will be held accountable to the hardworking people of Texas through provisions that enable us to clawback our grant.”