Saturday, June 02, 2012

Governor Perry's Vought Employment: Margin of Error

Texas Governor Rick Perry awarded Vought Aircraft Industries $35 million in 2004 for a promised 3,000 new jobs, on top of the existing 3,300 positions in the Dallas/Grand Prairie area.  By 2007 Vought knew those new jobs would go elsewhere, according to Vought CEO Elmer Doty.
To his disappointment, Doty added in an April 17 interview with the Dallas Business Journal, expanding in Dallas is unlikely, as are plans to buy the old Naval Air Station from the U.S. Navy. So a $35 million cash grant in 2004 from Gov. Rick Perry's Texas Enterprise Fund most likely will be repaid

How many jobs did Governor Perry's office claim Vought created?  Over 29,000, when in reality Vought cut 35 positions, a grant award of $1 million per job lost.  In the Governor's latest report, he claims Triumph/Vought employs 2,000 in Texas.  That's a 27,000 job margin of error.  It's also a 1,300 job loss from the 3,300 base.

Given Vought CEO Elmer Doty's confession that Texas jobs weren't coming, How much did Vought repay in 2008?  Zero. It went up marginally from there.

The Carlyle Group's Vought had $35 million for five years before paying a pittance back to Texas taxpayers.  The obligation for payback shifted to Triumph, not Carlyle's co-founders.

Rick Perry's PEU sweetness is clearly on display...

Update 6-7-12:  The Carlyle Group will sell the remainder of its stake in Triumph/Vought. Texas taxpayers should demand their $35 million plus interest from Carlyle. 

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