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Everything is bigger in Texas — even the sporting events.
It's no coincidence that this year's Final Four tournament is held in Houston; the state has, since the passage of a 2003 statute, aggressively courted major events using public funds. It even set up a trust fund that cities can tap into when they want to host a large event. Houston has put $8.4 million from it toward this weekend's NCAA men's basketball national semifinals and championship.
What Texas does is an anomaly, as many cities opt for tax hikes to raise their own funds for large events. And spending this public money is controversial among economists, who see it as an unwise use of taxpayer dollars. But it does mean that a disproportionate number of NCAA men's basketball championships now happen in the Lone Star State.
Texas cities hosted just two NCAA Final Fours between 1985 and 2004.
But in 2003, the state tried out a novel financial strategy for cities to use public funds to attract and finance sporting events. It became the only state to set up public trust funds for its cities to use to attract major events.
Using public money to pay for sports stadiums and major events like the Olympics isn’t new. But Texas does something different: It lets cities apply to use a pot of money that the state maintains, in order to host a big event.
The Major Events Trust Fund, as it's called, is different from other programs because it sets aside a portion of state money for the cities to use to cover the costs of hosting huge events. Other cities might have to raise taxes or find other ways to pay for the events, while cities in Texas can receive enormous sums of money without having to do so.
Texas maintains a list of events that these funds can be put toward, which includes everything from the NCAA Tournament to a World Cup soccer game, Elite Rodeo Association world championship, or the X Games.
