UPDATE (8/15/2011): Unfortunately, not one economic development fund received reduced funding in the Texas 82 Legislative Session. The Wall Street Journal has recently covered this issue in depth stating one large problem with such funds is “You’re taking from the average taxpayer and giving to someone who has a connection with government officials.” Read the full Wall Street Journal article.
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Political chameleons are thriving in Austin! Elected officials are experts at predicting and quickly reacting to the winds of political change and many have perfected the ability to cloak themselves in the colors most consistent with their surroundings. What they can’t seem to do is muster the political will and courage to actually do the right thing.
Having legislated Texas to the brink of financial disaster, Texas officials are now trying to make the drastic cuts that will be required to pass a budget that lives within our means–for Texans that means a $27 billion cut or some combination of cuts and additional revenue in the form of either fees or taxes.
While the rest of us immediately cut spending on luxuries and nonessential items when our budgets get tight, Texas House members refused to address that most fundamental principle. So while they’re willing to make dramatic cuts to the constitutionally mandated funding of public education and cuts to the state’s healthcare programs, they refuse to cut from any of the many economic development funds (read: corporate welfare) that have been used consistently to provide public money to “incentivize” private businesses in Texas.
While we’re tightening our belts, the Texas Legislature, the Governor, the Lt. Governor, the Speaker of the House and the Comptroller just can’t seem to tighten theirs. Appropriations to Chapter 313 programs, Tx. Enterprise Fund, Texas Economic Development Refund, Texas Enterprise Zone Program, Texas Moving Image Industry, Texas Emerging Tech Fund, CAPCO, Freeport Exemptions and TWC Skills Development Funds remain largely intact.
One guy seems to be interested in doing something about it. State Rep. Lon Burnam has filed two bills HB 465, “relating to abolishing the Texas Enterprise Fund, the Texas emerging technology fund, the Pan American Games trust fund, the Olympic Games trust fund, and a major events trust fund, a motor sports racing trust fund, and an events trust fund for sporting and non-sporting events” and HB 466 which seeks at least to place a moratorium on this misuse of taxpayer dollars. Only HB 466 will be heard in the Economic and Small Business Development Committee tomorrow. Among other things, HB 466 would return unawarded money from the Enterprise Fund and Emerging Technology Fund to general revenue until 2015. QUESTION: Where are the conservative, Republican co-sponsors for this bill? And the crickets chirp…
Bottom Line: Just like the chameleon, legislators change their colors – bold, limited government conservatives in front of TEA party crowds , (NOTE: watch for that talk at the upcoming April 15 TEA party events in your area and then ask why they didn’t cut corporate welfare in Texas) but playing nicey nice with the corporate welfare lobby crowd in Austin where it’s their vote and not their cheap-talk that really counts.
Only two Republicans voted against the proposed budget. We Texans commends Freshman Rep. David Simpson and Rep. Aaron Pena who cast those dissenting votes. According to the Texas Observer, consistent with my own conversations with Mr. Simpson, “…the Tea Party representative voted against the bill. He said he decided against it when he saw ‘half billion dollars going to corporate welfare instead of the weak among us.’ In particular, he wanted to see funding decreased for corporate incentives, like the film incentives and the governor’s Enterprise Fund, in favor of schools and health care.” Newly minted Republican Aaron Pena was the only other dissenting Republican vote.
Let’s call members of the House Economic and Small Business Development committee and let them know we’re serious about eliminating corporate welfare and unnecessary spending in Texas – let’s get HB 465 a hearing and let’s get HB 466 passed (of course if HB 465 passed, HB 466 would be unnecessary).
Chairman John Davis (512)463-0734
Vice Chairman Hubert Vo (512)463-0568
Rep. Rodney Anderson(512)463-0694
Rep. Borris Miles (512)463-0518
Rep. Jim Murphy (512)463-0514
Rep. Ron Reynolds (512)463-0494
Rep. Kenneth Sheets (512)463-0244
