Citizens’ ability to understand how their tax dollars are spent is fundamental to democracy. Budget and spending transparency holds government officials accountable for making smart decisions, checks corruption, and provides citizens an opportunity to affect how government dollars are spent.
State and local governments spend billions of dollars every year on economic development programs in the form of forgone tax revenue and direct cash grant payments to corporations in an effort to stoke investment and job creation in a particular city, state or industry.
A review of economic development subsidy reporting in all 50 states finds that a majority of states fail to meet minimum standards of online transparency, leaving residents, watchdogs and public officials in the dark about key public expenditures. States should shine light on economic development subsidies by requiring the online publication of key transparency reports and inclusion of economic development spending in the state’s online checkbook portal to meet the expectations of citizens seeking information in the 21st century.
Economic development subsidies – be they tax exemptions, credits, or direct cash grant payments – are a form of public spending, but are rarely held to the same transparency standards as other government expenditures.
Texas received a “C-” for making critical information about how governments are subsidizing business projects with taxpayer dollars readily available to the public online, according to a new report from TexPIRG Education Fund and Frontier Group. Following the Money 2019, the organization’s tenth evaluation of online government spending transparency, gives 17 states a failing grade, while only four states received a grade of “B” or higher.
Texas received an “C-” grade because it lost points for having no laws requiring either a grants report or an online portal database that includes its economic development payments. On the other hand, Texas got full credit for its annually published tax expenditure report.
"As taxpayers, we should be able to see how government spends our money down to the dime," said Bay Scoggin, TexPIRG Education Fund Director. "That includes the billions of dollars that state and local governments give away each year to lure businesses into their backyards."
The Texas Public Interest Research Group (TexPIRG) has released its 2019 “Trouble in Toyland” report defining three safety categories parents should watch for in their children’s toys: detectable dangers, hidden toxics and hazards and recalled toys.
Texas Public Interest Research Group (TexPIRG) has released its 2019 “Trouble in Toyland” report defining three safety categories parents should watch for in their children’s toys: detectable dangers, hidden toxics and hazards and recalled toys.
Your tax-deductible donation supports TexPIRG Education Fund's work to educate consumers on the issues that matter, and to stand up to the powerful interests that are blocking progress.
You can also support TexPIRG Education Fund’s work through bequests, contributions from life insurance or retirement plans, securities contributions and vehicle donations.