15/05/2011
NEWS STORY
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As work on the Circuit of the Americas continues there is growing unease that taxpayers money is being spent on the project.
Quite simply, with the state of Texas' budget deficit expected to hit $27bn over the next two years, politicians and lawmakers are asking where the 250m needed to build the track and pay the hosting fees for the next ten years will come from. While it is claimed the event will annually generate an estimated $300m for the local economy, some remain unconvinced.
"This is something we should not be doing," says Senator Dan Patrick, a Houston Republican, according to the ThinkProgress website. "How can you justify spending US$25 million? That is 500 teachers."
The "500 teachers" is a claim supported by Bloomberg which points out that at an average salary of $48,000, the $25m a year hosting fee could support 500 teachers. The claim comes at a time when, due to its growing deficit, the state is cutting essential services and laying off thousands of teachers.
"I don't understand why 25 people in Austin could not put up $1 million each if they thought this was a good opportunity instead of the state making a $25 million commitment," added Patrick.
Anger at taxpayers having to foot the bill is not helped by the fact that one of the driving forces behind the event is B.J. "Red" McCombs, co-founder of media giant Clear Channel Communications, and ranked as one of the 400 richest Americans with a net worth estimated at $1.4 billion. Critics are angry that despite his personal wealth, McCombs has persuaded state Comptroller Susan Combs to provide funding for the project with Austin's city government expected to hand over an additional $4m each year in tax revenue.