An article posted on the Bloomberg web site claims that Texas taxpayers will finance the U.S. Grand Prix in Austin as public schools sack teachers.
The article says that Texas, which may balance its budget by firing thousands of teachers, plans to commit $25 million in state funds to Formula 1 auto racing each year for a decade.
The articles mentions “As many as 100,000 teachers in Texas may be fired because of spending cuts to cope with the state’s budget crisis, according to Moak Casey & Associates, an Austin-based education consultant. For $25 million a year, the state could pay more than 500 teachers an average salary of $48,000”.
But Allen Spelce, a spokesman for businessman and investor B.J. “Red” McCombs, a Republican, says that each race in Austin is projected to generate enough tax revenue to recoup the $25 million from a state Event Trust Fund pool.
According to the estimates provided by Spelce in an email to Bloomberg, the F1 race will generate some $300 million of spending next year only while the race track should add 1,300 temporary jobs and drive some $400 million into the economy.
“The funding generated by the activity offsets the state’s investment,” Spelce said.
Marketing experts say that Austin and the state are unlikely to recover their investment directly. However, like it is the case with Montreal, the race will expose the city to a worldwide audience of tourists and executives that could help recruit companies and create jobs.
The race would surely be more popular if there would be an American driver in Formula 1. The American driver with the best resume to do the job is undoubtedly Californian Alexander Rossi who this year is competing with success in the Formula Renault 3.5 feeder series. With adequate backing and sponsorship, we should graduate to F1 in the next future, and generate some attention for F1 in the U.S.
The article says that Texas, which may balance its budget by firing thousands of teachers, plans to commit $25 million in state funds to Formula 1 auto racing each year for a decade.
The articles mentions “As many as 100,000 teachers in Texas may be fired because of spending cuts to cope with the state’s budget crisis, according to Moak Casey & Associates, an Austin-based education consultant. For $25 million a year, the state could pay more than 500 teachers an average salary of $48,000”.
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But Allen Spelce, a spokesman for businessman and investor B.J. “Red” McCombs, a Republican, says that each race in Austin is projected to generate enough tax revenue to recoup the $25 million from a state Event Trust Fund pool.
According to the estimates provided by Spelce in an email to Bloomberg, the F1 race will generate some $300 million of spending next year only while the race track should add 1,300 temporary jobs and drive some $400 million into the economy.
“The funding generated by the activity offsets the state’s investment,” Spelce said.
Marketing experts say that Austin and the state are unlikely to recover their investment directly. However, like it is the case with Montreal, the race will expose the city to a worldwide audience of tourists and executives that could help recruit companies and create jobs.
The race would surely be more popular if there would be an American driver in Formula 1. The American driver with the best resume to do the job is undoubtedly Californian Alexander Rossi who this year is competing with success in the Formula Renault 3.5 feeder series. With adequate backing and sponsorship, we should graduate to F1 in the next future, and generate some attention for F1 in the U.S.