Watchdog groups have long argued that the Texas Enterprise Fund, a taxpayer-funded program that has awarded more than $487 million to big businesses that set up shop in the Lone Star State since 2004, is a slush fund that allows Gov. Rick Perry to reward allies and political donors. Despite the criticisms, the Texas State Auditor's Office hasn't examined the fund's finances in at least a decade. Now a bipartisan group of state senators is pushing a bill that would subject the Enterprise Fund to an independent state audit. But Perry's office won't explain whether the governor backs the idea. Besides, it says, the state's top three Republicans have everything under control.
"Every project must receive unanimous approval from the governor, lieutenant governor, and House speaker," says Lucy Nashed, a spokeswoman for Perry. "The Legislature reviews the state's incentive funds every two years, and has continued to see the value in reauthorizing them every biennium since their inception." Actually, lawmakers are not planning to give any more money to the fund in the 2014-15 fiscal year, according to the San Antonio Express-News. (There is still about $140 million left in the kitty.) And although Nashed says that Perry "will review any bill that makes it through the process and onto his desk," she wouldn't say whether he supports or opposes the bill that has been introduced.
Auditing experts say having three GOP officials sign off on the Enterprise Fund's projects is not comparable to an audit. "I'm not familiar with the fund, but that doesn't seem to qualify as internal auditing at all," says Roger Martin, vice president of the American Accounting Association. D. Scott Showalter, an accounting professor at North Carolina State University, adds that "public funds [require] a higher level of accountability. An independent audit appears reasonable."
Given the Texas Enterprise Fund's record, Perry and his allies may have reason to fear a higher level of accountability. In 2010, the Texas Observer found that since the fund's inception in 2003, 20 of the 55 Texas Enterprise Fund grant recipients had given money directly to Perry's campaign or the Republican Governor's Association. A look at awards since 2010 shows the practice of handing money to Perry donors continues, albeit on a smaller scale: About 15 percent of companies that have received money from the fund since 2010 donated to Perry's campaign, according to records maintained by the National Institute on Money in State Politics and the Center for Responsive Politics.
Read more-http://www.motherjones.com/politics/2013/03/rick-perry-texas-enterprise-fund-audit
"Every project must receive unanimous approval from the governor, lieutenant governor, and House speaker," says Lucy Nashed, a spokeswoman for Perry. "The Legislature reviews the state's incentive funds every two years, and has continued to see the value in reauthorizing them every biennium since their inception." Actually, lawmakers are not planning to give any more money to the fund in the 2014-15 fiscal year, according to the San Antonio Express-News. (There is still about $140 million left in the kitty.) And although Nashed says that Perry "will review any bill that makes it through the process and onto his desk," she wouldn't say whether he supports or opposes the bill that has been introduced.
Auditing experts say having three GOP officials sign off on the Enterprise Fund's projects is not comparable to an audit. "I'm not familiar with the fund, but that doesn't seem to qualify as internal auditing at all," says Roger Martin, vice president of the American Accounting Association. D. Scott Showalter, an accounting professor at North Carolina State University, adds that "public funds [require] a higher level of accountability. An independent audit appears reasonable."
Given the Texas Enterprise Fund's record, Perry and his allies may have reason to fear a higher level of accountability. In 2010, the Texas Observer found that since the fund's inception in 2003, 20 of the 55 Texas Enterprise Fund grant recipients had given money directly to Perry's campaign or the Republican Governor's Association. A look at awards since 2010 shows the practice of handing money to Perry donors continues, albeit on a smaller scale: About 15 percent of companies that have received money from the fund since 2010 donated to Perry's campaign, according to records maintained by the National Institute on Money in State Politics and the Center for Responsive Politics.
Read more-http://www.motherjones.com/politics/2013/03/rick-perry-texas-enterprise-fund-audit
