Formula 1 Racing Speeds to Texas

Texas, which is staring at an estimated $15 billion two-year deficit, plans to commit $250 million in state funds to promote Formula 1 auto racing over the next decade. The international racing series showcases the world's fastest cars—low-slung, sophisticated machines designed to rigorous specifications (hence the word "formula") that can clock speeds of more than 200 miles per hour. Although hugely popular across much of the globe, the sport never really caught on in the States, and F1 officials stopped holding races in the U.S. in 2007.

Undeterred, a group of Texas investors, including Clear Channel Communications (CCMO) co-founder B.J. "Red" McCombs, are building a 3.4-mile track in Austin to host F1 races. State Comptroller Susan Combs, a Republican, has agreed to pay $25 million a year to underwrite races through 2022. According to Allen Spelce, a spokesman for the comptroller's office, F1's inaugural race in Austin next year will spur $300 million in spending on hotels, restaurants, and entertainment, allowing the state to recoup its investment through higher tax revenues. "It is important that the state continue to generate new economic activity to ensure that Texas continues to grow," said Spelce in an e-mailed statement.