Comptroller: TN taxpayers losing money on $200 million TNInvestco program
News release from state comptroller’s office
A performance audit from the Tennessee Comptroller’s Office has revealed the State of Tennessee has only recovered $5.3 million of its initial $200 million investment in the TNInvestco program.
The TNInvestco program, which started in 2009 and 2010, is described as a public-private venture capital program intended to help start-up companies create jobs and for the state to eventually receive a return on its investment. As of December 31, 2015, the State of Tennessee has only received 2.6% of the initial investment.
The TNInvestco program will continue until 2021, and the state should recoup more of its investment; however, the department will likely not receive a return nearing $200 million. Although state law does not require any level of recovery, auditors recommend the Department of Economic and Community Development (ECD) regularly report the amounts returned to the program to the public and the Tennessee General Assembly.
