That kind of state aid could be more common if Gov. Rick Perry's proposed economic development effort makes it through the state legislature this session. The governor wants to create a $390-million Texas Enterprise Fund go help close deals, spur development related to technology and biotechnology, keep a semiconductor research group in the state and provide health and disaster relief.
Perry proposed the fund as part of his "State of the State" address to the Texas Legislature. The plan calls for paying for the proposals by taking money from the state's Economic Stabilization Fund, also called the Rainy Day Fund. Perry says the money would not be used for recurring budget items, but would be invested in job growth. "We could fund these initiatives, and more, so that Texas has a stronger, more diverse foundation for the future," Perry said. "The best way to avert future rainy day scenarios is to grow our economy."
The biggest part of the proposal is the deal closing fund. Perry wants $200 million at the governor's disposal to allow quick and aggressive response to economic development opportunities. The money only would be used in cases that guarantee jobs and paychecks for Texans.
Such a fund was a key recommendation in an economic development report last year from Ray Perryman, a Waco-based economist. In the report, he said other states have flexible funds to pay for items such as a highway that a company might want before it says "yes" to putting a facility there. He said a Texas fund would make the state more competitive in landing projects.
Another $55 million would be used to attract technology and biotech firms to the state and to support university research. The state could use the money, in part, to establish technology parks, according to Perry's proposal.
The state would spend $40 million to help keep Austin-based International Sematech in Texas. The consortium of semiconductor companies, which researches and develops chip-making processes, is building a new facility in Albany, NY, which is receiving aid from New York state. Although Sematech officials say they are not abandoning Austin, Perry wants to chip in state money to help it build a new chip fabrication plant. Such a facility could attract related companies to the area.
Perry also proposes to spend $35 million to support the health-care infrastructure along the state's Mexican border. The other $60 million in Perry's proposal would go to cover the state's share of paying for damage caused tropical storm Allison in 2001.
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