New US Formula 1 track in Austin facing severe financial crisis – Formula 1 news
It has been revealed that the new Formula 1 track which is being built in Austin for the upcoming US Grand Prix is facing major financial problems.
The organisers of the venue had to deal with the problem after Senate finance committee of Texas voted 10-4 in favour of decreasing the construction budget of the new Austin track by $25 million.
The US Grand Prix is expected to take place from 2012 and it has been reported that this decrease in the track’s construction budget is going to affect the construction process to a large extent.
“At a time when people are stressed about their schools, stressed about their jobs, stressed about health care and nursing homes, for us to check off $25 million for race cars, I think we make people say where are their priorities,” senator Dan Patrick told.
It is not a secret that the whole world is currently going through a major financial crisis and keeping all of these problems in mind, it is quite difficult for the government to spend money on something which is not a “priority” for the area at the moment.
“That $25 million would pay for 500 teacher salaries. How can we explain to people we’re spending that money on race cars?” Dan added.
However, this is only according to the Senate’s version of the upcoming budget of the state and it has not been approved by the House of Representatives.
As a result, reports suggest that “most if not all of the incentives” are likely to be restored ultimately in the end.
The International Automobile Federation (FIA) was looking for new future venues for the sport in 2010. Along with the US Grand Prix which is scheduled for 2012, the governing body of the sport plans to hold a Russian GP as well.
Even in 2011, the Indian Grand Prix is expected to become a part of the Formula 1 calendar and is scheduled to take place at the end of October.