(Orange, Texas)

February 4, 2013

Perry's tech fund shows $6M in potential losses

Associated Press

AUSTIN — A new report shows that Gov. Rick Perry's pet fund for high-tech startups in Texas is leaving room for $6 million in potential losses due to troubled investments.

That allowance for bad debt is a drain on the value of the Texas Emerging Technology Fund. According to an annual report from Perry's office, the tech fund is now worth $2.4 million more than what the state has given to more than 130 private companies.

Perry's office says the report included the potential losses to give lawmakers a clearer picture of the fund's condition.

The tech fund has handed out more than $184 million since 2005. Perry calls the fund an innovative sparkplug for the Texas economy, but critics have targeted the program over performance and politics.