Circuit of the Americas Formula 1 Race Track

[turn1]

Originally Posted by Novacek

How could it be spent for anything if it wouldn't exist a priori without the agreement to use it for F1?

But it does exist...just as with any other event. It doesn't matter what would happen if it didn't exist. Let's say COTA gone a different way and had built the track and put on races without applying for the funding. Would the resulting additional tax money collected not belong to Texas taxpayers? Of course it would. If not the taxpayers, then who?

You seem hung up on this as somehow refuting any reference to the money's as taxpayer funds. It's the taxpayer's money, and has been redirected back to the event through this subsidy.

I have no problem with any of that though. I have no moral opposition to the fund or to COTA accessing it, as you seem to think. I helped them gain access to it in the first place. What is at issue is the proper administration of subsidies from the fund.

[Novacek]

Originally Posted by turn1

But it does exist...just as with any other event. It doesn't matter what would happen if it didn't exist. Let's say COTA gone a different way and had built the track and put on races without applying for the funding. Would the resulting additional tax money collected not belong to Texas taxpayers? Of course it would.

yes, it would. Because there would be no agreement with the METF

Originally Posted by turn1

You seem hung up on this as somehow refuting any reference to the money's as taxpayer funds. It's the taxpayer's money, and has been redirected back to the event through this subsidy.

Due to the agreement with the METF it never becomes the taxpayers money.

Major Event Trust Fund

The funds are held _in trust_ by the state. As an accounting principle, it never becomes part of the general fund.


BTW, while googling I found the 2012 report.
http://texasahead.org/tax_programs/e...vent_FINAL.pdf

[turn1]

Originally Posted by Novacek

yes, it would. Because there would be no agreement with the METF



Due to the agreement with the METF it never becomes the taxpayers money.

Major Event Trust Fund

The funds are held _in trust_ by the state. As an accounting principle, it never becomes part of the general fund.


BTW, while googling I found the 2012 report.
http://texasahead.org/tax_programs/e...vent_FINAL.pdf

You're arguing semantics. I'm not sure what that has to do with recent events.

Yeah, the report on the 2012 race was posted in September 2013, like I said.

[turn1]

Like I said before, it would be much simpler and clearer if they would just do a post-event analysis of approved events to determine how much subsidy they warrant, then give them that amount.

In the current process, the Comptroller:

- lets the event have input on how much $$ they receive, via pre-event projections,
- then sets the amount pre-event,
- then awards the amount right after,
- then attempts to justify it in the year following the event.

That's pure lunacy.

[jngreenlee]

The funds are held _in trust_ by the state. As an accounting principle, it never becomes part of the general fund.

This is what I was going after. I wonder if anyone here actually knows:

• Was the METF pre-seeded with non-F1 sales tax receipts?
• Do businesses collecting sales tax mail in their receipts to the State or to the METF?
• If they mail them into the State, are we sure the State immediately classifies them and moves them to the METF?

[turn1]

Originally Posted by jngreenlee

This is what I was going after. I wonder if anyone here actually knows:

• Was the METF pre-seeded with non-F1 sales tax receipts?
• Do businesses collecting sales tax mail in their receipts to the State or to the METF?
• If they mail them into the State, are we sure the State immediately classifies them and moves them to the METF?

Here's the Comptroller's answer to that question. She never indicates where the money actually comes from.

But to answer your first question, the first COTA subsidy was paid right after the first USGP, so the fund couldn't have been seeded by that race, right?

http://texasahead.org/tax_programs/event_fund/faq.php

How does money go into the trust fund for an event and how can it be spent?

Each trust fund combines the state and local contributions for that event. State law requires the state contribution to be 6.25 times the amount of the local contribution, but the state amount cannot exceed the amount of estimated state tax revenue gain from the event. The Comptroller estimates the amount of state and local government tax revenue gains prior to the event based on the attendance information and other data submitted with the request.

The Comptroller will pay money out of each trust fund on a reimbursement basis after the event is held. The requesting city or county must submit documentation of event-related expenditures for review by Comptroller staff. Upon approval of a reimbursement request, the Comptroller will send money to the requesting city or county.

Anyway, I'll catch y'all later. I'm off to the track to check out WEC setup. I'll have pics after the weekend. Hopefully even a few good ones!

Here are my pics from last year:

https://www.facebook.com/media/set/?...7614878&type=1
https://www.facebook.com/media/set/?...7614878&type=1
https://www.facebook.com/photo.php?f...type=3&theater

[jngreenlee]

Sorry, posting again but slightly different thread of conversation. This may have been previously commented on, but it just caught my eye and I don't recall it.

From the METF Post-analysis report

IV. Conclusion
The Comptroller estimate prior to the event was $25,284,469, including $14,619,925 in direct
taxes, and $10,664,544 in non-direct.

In this 26-page report they go to some reasonable lengths to use excel and 10-dollar phrases like 'null hypothesis' (just being funny, guys) to validate the ~$14mm direct taxes number.

However, I can't find anything in here that causes justification for the ~$10mm non-direct number. It's like its completely left out, like they had to 'make a number'. Can someone else look and confirm for me?

[jngreenlee]

Originally Posted by turn1

Here's the Comptroller's answer...

Thank you Turn1, based on my experience in software around State accounting, I kind of interpret that comment as indicating that:

• State and Local jurisdictions make an initial contribution to each METF
• METFs exist on a per-event basis (so possibly a separate account code each year)
• The repeat mentions of "City or County" almost make it sound like it was intended more for a situation where a local jurisdiction wants to throw a concert/fair/gun show/etc to drive local tourism. Not rushing to judgement, but using this for F1 has probably simply strained the process, if that is true.

[Novacek]

Originally Posted by jngreenlee

The repeat mentions of "City or County" almost make it sound like it was intended more for a situation where a local jurisdiction wants to throw a concert/fair/gun show/etc to drive local tourism. Not rushing to judgement, but using this for F1 has probably simply strained the process, if that is true.

The statute lays out the eligible events, and none of those are eligible (unless it somehow falls into the "Largest event at a venue with over 125,000 permanent seats" loophole)

http://texasahead.org/tax_programs/event_fund/metf.php

[jngreenlee]

Originally Posted by Novacek

http://texasahead.org/tax_programs/event_fund/metf.php

Duly noted, and good link.

[turn1]

Here's the latest from the SAEN, from yesterday also:

Combs failed the public on Formula One

http://www.mysanantonio.com/default/...ne-5762668.php

SAN ANTONIO — In the rush to bring Formula One car racing to Texas, Comptroller Susan Combs failed a crucial player: the public.

This has been a hallmark of her tenure as comptroller, one that has reflected a lack of core competencies in some very big ways (such as accurately forecasting revenues).

Her eagerness to make a deal on Formula One racing also raises ethical concerns about having the state's fiscal gatekeeper push deals.

As Express-News staff writer Nolan Hicks outlined through dogged reporting, event organizers for Formula One racing botched the process to qualify for state funding — and still received it.

The first step in the process calls for a local government or nonprofit organizing committee to submit an application to the event's site selection organization (a league, for example).

The problem is there is no evidence of an application. But not to worry; Combs' office has said there may have been an oral application.

Now, one could argue this is just a minor technical glitch since Formula One racing is here and many state leaders, such as Gov. Rick Perry, were falling over themselves to bring this premier event to Texas.

But not following a clear public process raises a number of technical and governance concerns. First off, it calls into question the $250 million Texas has committed to Formula One racing via the Major Events Trust Fund, which Combs oversees.

The state has already provided Formula One with $50 million from this fund for its 2012 and 2013 races.

Attorney General Greg Abbott has issued an opinion stating the process has to be followed to receive state funds.

It also raises the question of just who is looking out for the public.

“It's in the following of the process that the public gets protected,” State Sen. Kirk Watson, D-Austin, told Hicks. “And if the process isn't followed, it raises questions about whether the public is being protected when you're analyzing the use of this kind of money.”

Watson carried the bill to make Formula One eligible for state funding.

Mike Collier, a Democrat running for comptroller, has said the Major Events Trust Fund should be moved to a different agency.

We agree. It makes no sense to have the comptroller making deals. And yet that's just what Combs was doing.

[jngreenlee]

Posting again to see if anyone knows something I couldn't find.

From the METF Post-analysis report

In this report they go to some reasonable lengths to use excel and 10-dollar phrases like 'null hypothesis' (just being funny, guys) to validate the ~$14mm direct taxes number, that was reimbursed out of the METF.

However, I can't find anything in here that causes justification for the ~$10mm non-direct number (also reimbursed out of the METF). It's like its completely left out, like they had to 'make a number'. Can someone else look and confirm for me?

[turn1]

Originally Posted by jngreenlee

Posting again to see if anyone knows something I couldn't find.

From the METF Post-analysis report

In this report they go to some reasonable lengths to use excel and 10-dollar phrases like 'null hypothesis' (just being funny, guys) to validate the ~$14mm direct taxes number, that was reimbursed out of the METF.

However, I can't find anything in here that causes justification for the ~$10mm non-direct number (also reimbursed out of the METF). It's like its completely left out, like they had to 'make a number'. Can someone else look and confirm for me?

I got nothin. Sorry.

[turn1]

A little late, but I finally got through my Friday WEC/Tudor pics...Better ones from Saturday's racing are on the way also.

https://www.facebook.com/media/set/?...7614878&type=1

[KevinFromTexas]

Very cool pics!

[turn1]

THanks Kevin!

Here are the Saturday COTA Tudor/WEC racing pics I promised. Sorry so late!

https://www.facebook.com/media/set/?...7614878&type=1

[turn1]

Then it got darker...and wet.

BTW, at the two links above, there are hundreds more. Check 'em out...

[turn1]

OBTW, I've just uploaded to flickr an album of my better pics from last year's USGP:

https://www.flickr.com/photos/521432...7646593516474/

Preview:

[KevinFromTexas]

http://www.statesman.com/news/busine...ion-imp/nhtCf/

Posted: 11:44 a.m. Tuesday, Oct. 28, 2014
Report: Circuit of the Americas has $897 million impact on economy

By Gary Dinges
American-Statesman Staff

The 200 or so events held in the past year at the Circuit of the Americas have had a combined impact of $897 million on Austin’s economy, according to a report released Tuesday.

That’s nearly three times the $315 million economic impact South by Southwest had this year.

Formula 1 gets credit for most of the money COTA pumps into the economy, according to the report, accounting for about $507 million.

[jngreenlee]

Originally Posted by KevinFromTexas

http://www.statesman.com/news/busine...ion-imp/nhtCf/

The comments on that article are funny. I too am skeptical that impact is measurable given all the things happening to Austin over the same time period. I can't imagine a baseline being defensible.

Are we at page 100 on COTA yet?