Are tax dollars for Texas businesses really going out of state?

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AUSTIN, TX -You know what they say: ‘it takes money to make make money.’ And no one seems to know that better than Rick Perry.

In 2005 the governor created something called the ‘Texas Emerging Technology Fund,’ using taxpayer dollars to help fledgling tech companies in the state get on their feet and running. So far, more than 130 companies have signed-on and taken some $205-million of your money to build their businesses. But more than a few are getting grief from watchdogs.

One company called Targazyme (formerly America Stem Cell) took 1.2 million from the fund back in 2009 to help build their biopharmaceutical business down in Floresville. But there’s one problem: according to reports, there’s nothing at the company’s Texas address but a weedy lot. The California address listed on their website looks more like an airport hangar than anything else, leaving a Switzerland location as the only other published address for the company. And making folks wonder where, exactly, the state’s money is going.

We reached out to targazyme for clarification on their Texas locations, but weren’t able to reach anyone. Despite questions like these, the Governor’s office says the fund has earned some $30 million more than taxpayers originally invested.

Nonetheless, enough unanswered questions have folks wondering just how ‘open-for-business’ Texas actually is.