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"There's no way to tie (the credits) to any of the activity that's happening," said chief economist Paul Brewbaker at the
Bank of Hawaii. "I don't know why it was designed this way with no accountability.
We don't know who is getting the credits, what they're doing, or how much money they're getting."
... it is impossible to know how much the credits will end up costing.
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A study commissioned by the state of Louisiana
called the program "expensive and inefficient" and said "the greatest and most immediate beneficiaries of the
CAPCO program are CAPCO companies and their owners."
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- A state study in Missouri found 66% of the funds generated by the venture Capital program there
"were not being used for the intended purposes of providing Capital for start-up or expanding Missouri businesses."
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- A legislative audit in Colorado noted that "CAPCO programs are a most inefficient means for the state to raise venture Capital"
and questioned whether any jobs created were attributable solely to that financing.
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Rocky Mountain News.
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Lee recalled in an interview Thursday.
Bob Lee, head of the Colorado Office of Economic Development.
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Colorado Treasurer Mike Coffman
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Mark Hillman, who replaced Mike Coffman as Colorado state treasurer.
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Bob Lee, head of the Colorado Office of Economic Development.
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Proponents for the program contend, however, that the CAPCO act is responsible for nearly all of the state's VC activity.
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In addition to the poor job creation figures, a recurring criticism of the CAPCO model in most news accounts and state audits appears to be that all or nearly all of the risk is borne by the state. The CAPCOs receive the full tax credits and management fees regardless of the quality, quantity or success of the investments made.
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- The Colorado audit also noted the Capital firms had spent $471,503 on lobbyists in Colorado...
In addition, said Coffman, the firms' legal costs came out of the state allocation.
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"I think ,"
Bob Lee, the head of Colorado's Office of Economic Development.
See article
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- In Wisconsin, according to an analysis by the state audit bureau, the $50 million program had
generated just 157 jobs by March, more than three years after the allocations began.
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Imagine the state gave you $75 million in tax money to invest in new businesses to create jobs.
Imagine that, rather than creating jobs, the companies you invested in lost 174 jobs in the first four years.
Imagine you got to keep all the money anyway, without ever having risked a penny of your own.
Sound too good to be true? Nothing Ventured, Millions Gained, Palm Beach Post
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- "It's a heck of a deal," said Florida Chief Financial Officer Tom Gallagher. "I think it's terrible public policy.
We've got a lot more needs in this state than funding venture Capitalists."
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What Mike Williams, of the Louisiana Department of Economic Development, told a reporter investigating the CAPCO program:
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Colorado state Treasurer Mike Coffman, said he "sincerely hope(s) that the legislature drives a stake
through the heart of this monster and doesn't allow it to come back in some mutated form."
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Daniel Sandler, Faculty at Law, University of Western Ontario.
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Re: Rhode Island
said Julia Sass Rubin,
a Rutgers University professor of public policy, who has spent five years researching these kind of subsidies.
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Re: Washington DC
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