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Democrats sweep TCAD board election

There is no such thing as a nonpartisan election in Travis County, Texas

Sure, sure, I know. Elections in Travis County for city councils, school boards, and even the board of directors of the Travis Central Appraisal District are technically nonpartisan.

In reality, political party DNA was front and center in efforts to turn out the vote in favor of endorsed candidates. And as usual in deep-blue Travis County, the Democrats clobbered Republican and Libertarian opponents.

Making this election even more partisan than usual is that the chair of the Travis County Republican Party, Matt Mackowiak, and the treasurer of the Travis County Libertarian Party, Jonathan Patschke, were on the ballot.

Partisan pitches for support

Both parties blasted out email appeals to urge people to vote in what was to be a predictably low-turnout election. In all, 55,991 of 895,663 registered voters cast ballots, for an anemic 6.25 percent.

Lloyd Dogett

U.S. Representative Lloyd Doggett, Travis County Commissioner Brigid Shea, and near-miss 2022 Austin mayoral candidate Celia Israel all emailed appeals for Democrats to get up and go vote.

Cleo Patricek, a Democrat who cofounded Save Austin Now with Mackowiak, emailed appeals April 29th and 30th and May 2nd urging voters to elect the organization’s three endorsed candidates (who happened all be Republicans, despite the organization’s self-proclaimed nonpartisan nature).

Republicans presented themselves as “taxpayer advocates” (as if Democrats were not?). Democrats returned the favor by casting the Republicans as “anti-tax.”

Shea, for example, warned of electing “those with anti-tax views to influence our central appraisal district.”

Israel predicted the Republicans would bring “extreme, anti-tax veto power to the board.” She was referring to the fact that the enabling legislation for this election allows any two of the three elected board members to veto appointments to the Travis Appraisal Review Board (ARB). The ARB conducts formal hearings of property valuations set by the appraisal district.

In reality it’s inconceivable that partisan politics will play much of role in how the ARB’s formal hearings are conducted. That procedure is strictly governed by state law. And the ARB employs lawyers who provide training before hearings begin each year and ongoing advice when need.

Israel’s pitch is somewhat more pertinent, however, as she will herself be on the board. She is running unopposed for Travis County tax assessor-collector. By law, once elected she will become an ex-officio member of TCAD’s board, following the November general election and January swearing in.

And the results are

All three Democrats on the TCAD ballot—all attorneys, by the way—pulled around 70 percent of the 50,000-plus votes cast in this first-ever opportunity for citizens to elect a few members of TCAD’s board.

The candidates self-selected one of the three at-large positions on the ballot for which they would compete.

Jett Hanna

Place 1—Democrat Jett Hanna, 64, netted 69.46 percent to defeat Republican Don Zimmerman, 63, a former Austin City Council member and perennial candidate for any position that provides an opportunity to be on the ballot.

Zimmerman drew his best support in far west and far east areas of the county, while Hanna was strongest everywhere else. (To see results on the Place 1 map. click here.)

Daniel Wang

Place 2—Democrat Shenghao “Daniel” Wang, 29, pulled 67.73 percent of the votes to beat Republican Mackowiak, 44, and Libertarian Patschke, also 44.

Mackowiak drew strong support mainly in western Travis County, while Wang dominated everywhere else except for a small pocket in southeast county that Patschke won. (To see results on the Place 2 map. click here.)

Dick Lavine

Place 3—Democrat Dick Lavine, 76, grabbed 73.03 percent of the ballots cast to beat Republican Bill May, also 76. Lavine previously served on TCAD’s board for 21 years as an Austin ISD appointee.

May polled well in in far east and west portions of the county while Lavine buried him everywhere else. (To see results on the Place 3 map, click here.)

Those elected will take office July 1st and serve terms ending December 31, 2026. An election is to be held in November 2026 for these three board seats. Winners of that election will be sworn in January 1, 2027, for four-year terms.

Although these three winners will soon be sitting on TCAD’s board, they will be outnumbered by the five board members appointed by the taxing entities whose tax rolls are prepared by the agency.

Election a big deal, otherwise TCAD ignored

While the enabling legislation provides for elected representation on TCAD’s board for the first time since appraisal districts were created by legislation in 1979, public attention is rarely drawn to its meetings, which are broadcast on the Internet via Zoom.

Press coverage, except for the Bulldog, is virtually non-existent. The board met only eight times in all of 2023 and has met only three times so far in 2024.

The board’s chief responsibilities are to hire and supervise the chief appraiser, approve the agency’s internal policies, and approve annual budgets that are funded by the taxing entities it serves. And, due to the legislation that permitted this election of board members, TCAD’s board will approve appointments to the Travis Appraisal Review Board.

Trust indicators: Ken Martin has been covering local government and politics in the Austin area since 1981 and investigating and reporting on Travis Central Appraisal District since 2011. Email [email protected].

Profile: Doug Greco for mayor

Douglas Jeffrey Greco, 53, is one of four candidates (so far) who’s campaigning to be Austin’s mayor in 2025.

Greco trying to unseat incumbent Mayor Kirk Preston Watson, 66, who raised and spent $2 million to win his third term in 2022. He was first elected mayor in 1997, was reelected in 2020, and resigned in 2021 to run for Texas attorney general. 

He’s also running against two other challengers:

Carmen Dolores Llanes Pulido, 39, is a native Austinite, second-generation activist, and longtime organizer with multiple community organizations.

Kathryne Beth Tovo, 54, won election to the City Council three times and served for more than 11 years ending in 2022. Tovo appointed a campaign treasurer to run for mayor in 2022 but then chose not do so.

Detailed profiles about the other three mayoral candidates will be published later, in alphabetical order. 

Leaving activism for shot at making policy

To compete with his better known opponents Greco will draw on his long experience as an organizer for multiple organizations, including the nonprofits Austin Interfaith and Austin Interfaith Sponsoring Committee. 

To get his campaign underway, in late January Greco resigned from those organizations, which in 2022 paid him a combined salary of more than $144,000, plus more than $10,000 in “other compensation,” according to the latest publicly available tax returns.

Greco told the Bulldog he has lived in Austin off and on since 1997. He arrived a few years after graduating from Brown University with a bachelor’s degree in economics and began teaching at Johnston High School (later renamed Eastside Early College High School). 

He taught at Johnson for five years ending in 2002, an era in which the school went through seven principals, a claim substantiated by his campaign treasurer, Claudia Kramer Santamaria (more about her later). “It was kind of a crisis at a time with high turnover, and challenging,” Greco said. “What sustained me was getting involved in community organizing to build stable engagement in school.”

He left teaching to be an organizer with Austin Interfaith. In late 2003 he moved to San Antonio to work as senior organizer with Communities Organized for Public Service (COPS). (Austin Interfaith, Austin Interfaith Sponsoring Committee, and COPS are all partners with the Industrial Areas Foundation, a network of religious congregations, civic organizations, unions, and nonprofits that work to achieve lasting change in the world.)

Greco returned to Austin in 2007 to work as lead organizer and executive director of Austin Interfaith, which he helped to expand and change its name to Central Texas Interfaith (although its tax returns are filed under the organization’s original name). He left in 2012 to earn a master’s degree in public policy from Princeton University, where he graduated in 2013, he said.

After Princeton he relocated to California (more about that later), then moved back to Austin to serve as chief of staff for State Representative Gina Hinojosa (D-Austin) during the 2017 regular and special-called legislative sessions.

That was the year big battles were fought over the so-called “bathroom bills” pushed by Republicans to restrict the rights of transgender individuals and deny them access to public facilities. Those bills were ultimately defeated and haven’t resurfaced.

“Doug Greco was a hard-working and conscientious chief of staff for my first session in the House,” Hinojosa told the Bulldog. “I knew him from my prior volunteer organizing days at Austin Interfaith. I have the utmost respect for him and gratitude for his contribution to our community and to my development as a leader in Austin.”

Issues central to Greco’s campaign

Greco intends, if elected, to challenge Governor Greg Abbott’s attacks on local decisions.

He wants to focus on affordability—the lack of which is pushing working people out of Austin. Affordability is a political buzzword on every candidate’s lips, but what would Greco actually do to help?

“My priority is affordability through workforce development, education, and living wages. We need to train people and help them get jobs that are already here and commit to living wages, over $20 an hour. 

“We need to address affordable housing, rental assistance, and homeless issues. We need to pay police, fire, and EMS… I’m big on thinking about how folks are earning enough to stay in Austin, compete for jobs here, and not move out of the city.”

In addition, Greco wants to prevent institutional investors from gobbling up single-family homes so that people who will actually want to live here have a chance to compete with offers. To that end, his former boss, Representative Hinojosa, filed two bills aimed at fixing that problem for the 2023 legislative session. 

HB 1056 would have required financial institutions or investment firms that own and offer a dwelling for lease to register the number of dwellings owned in each county with the Texas Comptroller. The comptroller would have been required to publish a searchable registry on its website.

HB 1057 would have barred investment firms from entering a contract to purchase a single-family home listed for sale before the 30th day after the date the home is listed. 

Both bills were referred to the Business and Industry Committee, where no action was taken. Those bills are dead. The issues are not.

The Texas Tribune reported March 15th that Governor Greg Abbott has weighed in: “I strongly support free markets,” Abbott wrote on the social media site X… “But this corporate large-scale buying of residential homes seems to be distorting the market and making it harder for the average Texan to purchase a home. This must be added to the legislative agenda to protect Texas families.” 

Unless Abbott calls a special session that can’t be considered before the 2025 session. 

Meanwhile, Greco would like to the city to make grants or loans to home owners so they could make improvements or build additional dwelling units. “I also support mortgage and rental assistance programs for similar reasons,” he said.

Money always a campaign issue

As the Bulldog reported, Kirk Watson spent $2 million in his 2022 mayoral campaign. The opponent he narrowly defeated in a runoff, Celia Israel, spent more than $707,000.

Greco said his fundraising goal is “more along the lines of Celia’s. I don’t need million and a half.”

He said his goal for the July 15th campaign finance report, which will show fundraising through June 30th, is to hit “six figures” and afterwards “scale up from there.”

Greco has some personal experience in fundraising, but not the kind that’s necessary in retail politics. He founded Ground Strategies LLC in January 2022, according to records maintained by the Texas Secretary of State. Under a “small contract” he said he raised foundation money for the Organizing Institute of Southwest Industrial Areas Foundation.

Greco recently returned from a fundraising event in Sarasota, Florida, where family and friends turned out to show support.

Left to right, brother Joseph Greco III, mother Candace Greco, Doug Greco, and father Joseph Greco Jr., at fundraiser in Sarasota, Florida.

Greco said he will be focused on using any money he raises mainly for door-knocking and mailing campaign literature. “Big money stuff costs more but is not as efficient.

Greco recently hired Mariana Krueger to manage his campaign. He said that she most recently served as organizing director for District Attorney Jose Garza’s primary campaign. Krueger is well connected through her appointments to city commissions by three council members. She is Jose Velasquez’s appointee to the Environmental Commission, Zo Qadri’s appointee to the LGBTQ Quality of Life Advisory Commission, and Paige Ellis’s appointee to the Human Rights Commission.

He said he has not hired a campaign consultant, but instead is relying on “advice from those who have run campaigns. I spent more than 15 years with the Industrial Areas Foundation. I need folks who have run the mechanics of a campaign. I have a big circle of colleagues.”

“I have taken the fair campaign pledge,” Greco said, referring to the Code of Fair Campaign Practices, by which candidates are encouraged to follow the basic principles of decency, honesty, and fair play. 

He has also signed the Candidate Contract, which, per Austin City Code Section 2-2-12, limits a mayoral candidate from making expenditures that exceed $120,000, plus an additional $80,000 in a runoff. That would qualify him for a share of whatever funds are in the Austin Fair Campaign Fund, should he make it into a runoff. Plus, if even one other mayoral candidate does not sign the Campaign Contract, that releases him from the limitations. All three of his opponents have not signed a Candidate Contract, according to their websites.

Making it into a runoff is what he’s shooting for. And a runoff could very well be needed in a mayoral election with four viable candidates.

In Kirk Watson’s May 6, 2000, mayoral reelection victory, he thumped three opponents by getting 84 percent of the votes. However, none of his opponents were viable candidates. His bid for reelection in 2024 seems to promise an entirely different scenario.

Criticizes Mayor Watson

Greco faults the incumbent mayor for failing to stand up for the civil rights of some 60 University of Texas employees who were terminated because their jobs involved diversity, equity and inclusion. In an April 3rd press release, Greco stated, “ Austin Mayor Kirk Watson should immediately convene community leaders, UT students, local nonprofits, local legislators, and public entities to determine how our community can replace some of the student resources and programs UT has cut in response to Texas’ new anti-DEI law.”

The release mentioned that on February 21st Greco had called on the city to step up. “Where the state has failed LGBTQ students at UT, the City of Austin needs to lead.”

On April 24th, via Watson’s campaign website, the Bulldog asked the mayor to comment on these criticisms. No response has been received.

In addition to pushing these issues through criticism, Greco’s campaign will stress that he is intent on maintaining a “seat at the table” in politics to protect LGBT rights. 

“I want to be a mayor that creates space for LGBT rights, civil rights, and immigrant rights. I want to open up the process for others, with everyone at the table to address long-term issues,” he said.

Legislative victories

Greco is a novice at running for elective office but he’s no stranger to political battles. In addition to his year as a chief of staff for Representative Hinojosa, his website claims that he “led efforts with (Central Texas Interfaith’s) Texas (industrial Areas Foundation) Network to kill the state’s largest corporate welfare program, Chapter 313, which took over $1 billion a year in potential school funding and instead gave it to multinational oil and gas companies.”

At the Bulldog’s request, he backed up that claim with proof.

The Intercept published a detailed article about this issue: “We thought it would be a victory if the two-year reauthorization passed so we could organize in (the) interim,” said Doug Greco, the lead organizer for Central Texas Interfaith.” Then, time ran out and the bill never came up.

“The lapse in authorization coincided with three other groundbreaking blows to oil and gas corporations,” The Intercept article states: “A Dutch court ruled that Shell Oil is liable for its climate impacts and must reduce its greenhouse gas emissions. Exxon Mobil shareholders booted out two members of the corporation’s board of directors for its failures on the climate crisis. And Chevron shareholders voted to force the company to cut its emissions.”

Locally, the battle continued into the 2023 legislative session. The end result was a replacement for Chapter 313 that “is a much more accountable program in terms of increasing wages and job requirements, cutting the tax abatement from 100 percent to 50 percent, and eliminating ‘kickbacks’ (side payments) to school boards and school districts to induce them to give the tax break,” Greco told the Bulldog.

“This was by far my most significant legislative work with Central Texas Interfaith and our state network and Texas Industrial Areas Foundation, and one in which I coordinated organizing efforts. We fought the largest business interests in the state for three years (oil and gas companies, manufacturers, and Texas Association of Business), brought them to the table after killing Chapter 313, and ensured its replacement was…a much more accountable program.  

“I think the Mayor of Austin needs to have the ability to stand up and take on big money interests locally and at the state level, and those that represent them,” Greco said.

Could Austin elect a gay mayor?

Greco is a single, openly gay man, who says he does not have a domestic partner.

But how does a person’s sexuality matter in politics, if at all?

In the Texas Legislature it seems to matter a great deal. The Texas Tribune reported in March 2023 that the Texas Legislature includes nine lawmakers who are openly LGBTQ, all Democrats. Still, that’s not a big number, given that Democrat Glen Maxey was the first openly gay candidate to win election to the Texas House of Representatives. That was in 1991—32 years ago.

Today the Texas Legislature is dominated by Republicans, who generally are less than accommodating about sexual preferences. The Tribune in June 2023 reported that the Legislature banned puberty blockers and hormone therapy for trans kids, restricted college sports teams that trans athletes can join, and took a swipe at drag shows, too.

Notwithstanding the wishes of conservatives, sexual orientation hasn’t much mattered in metropolitan municipal elections in Texas.

In Austin, for example, voters have a long tradition of upholding gay rights at the ballot box. In January 1982, a solid majority of voters soundly rejected an amendment to the city’s Fair Housing Ordinance. The amendment would have allowed denial of housing on the basis of sexual orientation. The measure got on the ballot through petitioning by Austin Citizens for Decency, the group about which I wrote pre-election coverage for Third Coast magazine.

Annise Parker

More recently in Houston, Annise Parker, a Democrat, became the first lesbian mayor of a major U.S. city when elected in 2009, and served from 2010 through 2016. 

Openly gay Jimmy Flannigan was elected to the Austin City Council in 2016 to represent District 6.

And in Austin’s 2022 mayoral election voters demonstrated the majority do not care about a candidate’s sexual preference. They very nearly elected Celia Israel, a married lesbian, instead of Kirk Watson. With 114,188 votes cast, Watson’s margin of victory was 942 votes.

Like Parker and Israel, Greco is a Democrat. Since coming back from California and voting in Travis County since 2017, he has voted in six Democratic and no GOP primaries. This according to voting history records published by the Travis County Tax Office.

But LBGTQ+ bashing still exists

Aside from the heated legislative battles fought over the defeated “bathroom bills” in 2017, there is an element outside the Texas Legislature that continues to push back against anything involving the rights of people who are not unambiguously heterosexual.

Greco’s sexuality and activism on these issues came under blistering attack in 2022. 

The Virginia-based Lepanto Institute used Greco’s identity to go after his employer, the Austin Interfaith Sponsoring Committee (AISC). The article was triggered when the AISC was awarded a $60,000 “Economic Justice” grant by the Diocese of Austin, which is overseen by Bishop Joe Vasquez.

Doug Greco faces camera (wearing white glove) in photo of his softball team, Austin Ball’rz.

A nine-page article published by the Lepanto Institute begins with, “At issue with this (grant) is the fact that Austin Interfaith, and its leader, is openly promoting transgender and homosexual ideologies.”

The article even slammed Greco for being on a gay softball team, the Austin Ball’rz, which he says has made it to the Gay Softball World Series the last four years running.

The article concludes with, “Austin Interfaith is led by an LGBT activist who has clearly used his position in a CCHD-funded (Catholic Campaign for Human Development) organization to promote transgender and homosexual ideologies. His history of support for same-sex ‘marriage’ and the genital mutilation of children [which Greco said he is not in favor of, though he does support gender-affirming care] makes him a clear danger to sound morals and the Catholic faith at the very least. 

“Outside of the Catholic faith, he is a menace to the common good. Given this, no Catholic could ever, in good conscience, ever give to Austin Interfaith.”

Greco takes the attack in stride, calling it a “badge of honor.” But he emphasizes that he did not use his position with Interfaith to advocate on LBGT issues. “All that advocacy work was outside my job or when I was not with Interfaith.”

Strong advocate for equality

Make no mistake though, Greco is very much an outspoken advocate for LGBT rights. 

In April 2015 he became director of programs for Equality California, which bills itself as “the largest statewide LGBTQ+ civil rights organization in California.” (This position was listed in his application to be Representative Hinojosa’s chief of staff, which the Bulldog obtained with a public information request.) 

In June 2015, while Greco worked with Equality California, the U.S. Supreme Court legalized same-sex marriage in Obergefell v. Hodges. That was hugely important nationwide but perhaps even more so in California where voters in 2008 had amended the state constitution to ban the practice.

Greco’s application also shows that in the latter half of 2016 he worked in California as senior organizer for One LA, “a broad-based organization, made up of member congregations, schools, and nonprofits who shape the organization’s agenda and teach their constituents how to be effective public people.” One LA is also affiliated with the Industrial Areas Foundation.

A scholarly approach to civil rights

Greco’s application to work for Hinojosa states that he earned a master’s degree in public policy from Princeton University. He said he got a second master’s degree in creative writing from the University of Southern California.

Furthering his work in civil rights, he wrote a small book that explores the civil rights movement both nationally and internationally: To Find a Killer: The Homophobic Murders of Norma and Maria Hurtado and the LGBT Rights Movement (Histria Books 2023, 134 pages).

Greco’s impetus for writing the book was the April 2011 murder of Norma Hurtado, a 24-year-old lesbian who had once been his student in a ninth-grade geography class back at Johnston High School.

Jose Aviles, the father of Norma Hutado’s girlfriend, objected to the relationship. He killed Norma Hurtado by firing 15 rounds into her body, and one more into her mother, Maria Hurtado. Both died instantly. Aviles fled but was caught, tried, convicted, and sentenced to life in prison without parole.

Hurtado’s murder, Greco said, “got me thinking about being a gay man and how to integrate my IAF experience with my interest in the LGBTQ movement.” 

Although the book begins and ends with these murders, it covers a range of issues related to LGBT rights. Chapter 5 details LGBT history in political organizing. Examples include José Sarria, whose New York Times obituary published in 2003 states, “many historians contend (he) was the first openly gay person to campaign for public office in the United States, when he ran for San Francisco’s Board of Supervisors in 1961.”

Sarria blazed the trail for Harvey Milk, who in 1977 won a seat on that same Board of Supervisors. Only to be shot and killed in 1978 along with Mayor George Moscone, in scenes vividly reenacted in the 2008 movieMilk.

profiled Austin’s first openly gay mayoral candidate, Eric Silvernale, for my In Fact newsletter November 15, 1995. 

Holding politicians accountable

Interfaith, where Greco got his start in organizing more than two decades ago, hosts candidate forums unlike any other. Interfaith calls these public events “Accountability Sessions.” Candidates are invited to hear stories about issues that are hurting families and communities. Then the candidates are asked “straight questions” about where they stand on those issues. 

To generate interest in elections, Interfaith’s member institutions let the public know how the candidates responded to Interfaith’s issues. Member institutions include congregations, unions, and nonprofits that collectively turn out many hundreds of volunteers to block walk, sign up supporters, and get out the vote.

But Interfaith’s work doesn’t end there. When candidates are elected, Interfaith leaders watch and work to hold them accountable.

Watson launched with massive support

Mayor Watson on April 10th launched his campaign by announcing endorsements from 55 elected or former elected officials from all over central Texas. The list included former Austin Mayors Lee Cooke, Lee Leffingwell, Ron Mullen, and Will Wynn, plus seven of the nine current Austin council members. 

Noticeably absent from the list of endorsing council members were Mackenzie Kelly, who is running for reelection in District 6 and did not want to comment, and District 10’s Alison Alter. Alter told the Bulldog, “Unlike in 2022, in 2024 I will not be endorsing Kirk Watson for mayor because I have learned that when someone shows you who they are, (you should) believe them.

“Watson has acted as a bully and prevented real policy deliberation by members of the council and the public,” Alter said.

People who know Greco

Greco can’t compete with Watson’s two score and 15 high-profile endorsements. But he does have character references and initial supporters. 

The Reverend Miles Brandon II, clergy leader of St. Julian of Norwich Episcopal Church in Round Rock, is on the board of Central Texas Interfaith. That’s where Greco worked as lead organizer until resigning in late January to run for mayor.

In describing Interfaith’s volunteer efforts in block-walking, Brandon said, “We focus particularly on districts with low voter turnout. In post-election reviews we find that after working in those districts, people vote at the same level or higher than traditional high-turnout districts.” 

“As a leader in Central Texas Interfaith,” Brandon said, “it’s important to say that as community organizers we do not have political parties. We do not endorse candidates. We have issues to work on in the community and in this election cycle we will be working with everyone running for mayor without partiality. 

“Doug was a good leader for us but now as a person running for office he will be treated like all candidates.”

In describing Greco’s character, Brandon said, “He’s a person of deep faith, active in the Episcopal Church, and really cares about people. He genuinely wants everyone to flourish, especially those who are underrepresented.”

The vicar went on to say that “Doug is fiery and passionate about the things he believes in deeply. He has a really good political acumen, understands political nuances, and how to deduce policy to make change and get people to work together. He is very well organized and has already been thinking about some of the most important issues, including eradicating homelessness, economic development, and affordability in housing.”

Back when Greco was teaching at Johnston High, Claudia Kramer Santamaria, PhD, was principal at another Austin ISD school. She said she saw Greco speaking at Austin Interfaith’s Accountability Sessions and was impressed.

“I kept running into Doug and found him to be person of high integrity. He loved teaching at Johnston, and was a leader there, trusted. I got to know him and worked with him.

“Later he became a paid organizer at Austin Interfaith and I did too. He used to work on funding for schools, leadership, after-school programs, and integration issues. 

“A lot of families are undocumented and didn’t feel safe coming to school meetings,”  she said. “I saw Doug with neighborhood people, helping them to ask questions so could advocate for themselves.” 

Santamaria is not only Greco’s campaign treasurer but also volunteers to help boost his chances as a candidate. 

Santamaria said her reasons for supporting Greco’s mayoral bid go far beyond specific issues, “It’s about people being impacted by issues and organizing to make changes. He understands what people of lesser incomes and resources are experiencing. He ‘gets it.’ ” 

She notes that Greco was raised by a single mom, although he told the Bulldog, “My dad was still a strong presence in my life.” Greco’s blog, “Yellow Pig,” documents much of his family’s life and ancestors, and what it was like to grow up in the Coal Region town of Mt. Carmel, Pennsylvania. 

The only elected or former elected officials who have so far been announced to endorse Greco are Austin ISD Trustee Ofelia Zapata, a longtime leader at Austin Interfaith, and former AISD trustee Ann Teich, a community organizer and union member.

Trust indicators: Ken Martin has been reporting on elections in Austin and adjacent Williamson and Hays counties since 1981.

Related Bulldog coverage of 2024 elections

First-ever opportunity to elect appraisal board members, February 29, 2024

They’re off and running for council, January 19, 2024

District 10 candidates jump in early, December 14, 2023

Siegel running for City Council District 7, October 31, 2023

Court halts $354 million development subsidy

A Travis County court issued a ruling to halt the use of future property taxes to subsidize luxury development of 118 acres of land within the South Center Waterfront District.

Jessica Magnum

District Judge Jessica Mangrum last Friday issued a Summary Judgment Final Order in favor of plaintiffs. The lawsuit to stop those subsidies was filed almost exactly a year ago, April 24, 2023. (Taxpayers Against Giveaways, et al, v. City of Austin Mayor Kirk Watson, et al, Cause No. D-1-GN-23-002238.)

The plan approved by the City Council was to divert $354 million in property taxes for infrastructure improvements on that land so that it would develop in the manner the council desires. To that end, the council established Tax Increment Reinvestment Zone No. 19, the SCWF-TIRZ.

Lawyer-lobbyist Richard Suttle of Austin law firm Armbrust & Brown represented developer Endeavor Real Estate Group in gaining City Council approval of the SCWF-TIRZ.

Richard Suttle

As the Bulldog reported, when at one point it looked like the Council might not approve the TIRZ, Suttle told the Council, “I’ll tell you what: we won’t build the plan if there’s no TIRZ. It just doesn’t work.”

Suttle has not returned a call left with his office this afternoon for comment on the judge’s ruling.

Meghan Riley

Meghan Riley, the Law Department’s litigation division chief, issued this statement at 5:37pm: “We are disappointed in today’s ruling but very much appreciate the court’s careful consideration of this complex issue.  We will review the specific implications of the decision in the coming days. That said, we do not believe this decision impacts the City’s ability to move forward with proposed zoning changes for the South Central Waterfront area.”

Plaintiffs’ attorneys comment

Plaintiffs attorneys Bill Aleshire, Bill Bunch, and Fred Lewis.

Plaintiff attorneys in the lawsuit were Bill Aleshire, William G. “Bill” Bunch of the Save Our Springs Alliance; and Fred Lewis.

Lewis emailed this statement: “Travis County District Judge Jessica Mangrum held today the City Council violated state law by creating the South Central Waterfront TIRZ and agreeing to transfer $354 million in local property taxes to pay to develop an $8 billion private luxury development on Lady Bird Lake.

“It would be nice if the city learned from this.”

In a telephone interview, Aleshire was more pointed.

“It’s a huge victory for taxpayers that could eventually lead to an end of the abuse of TIRZ throughout the state of Texas.”

Creating a TIRZ “means all the other taxpayers have to make up for the loss of revenue for the general operation of the city, while the TIRZ property owners pay their usual taxes but in this case got 46 percent of their taxes kicked back for the special benefit of their development. That’s not equal and uniform taxation.”

Aleshire said, “Bill Bunch went to City Council meetings several times and warned them that they would be sued if they approved this TIRZ, because that land is not blighted and would develop without this kickback. He presented a letter that promised they would be sued. City Council members should be ashamed for approving this as a matter of policy—especially now that we have shown it is illegal through this summary judgment.”

Summary judgment means there are no material factual issues remaining and the case can be decided as a matter of law.

“City attorneys made even easier for us about how to interpret that section of the tax code,” Aleshire added. “To create TIRZ they must meet the ‘but-for’ test. City attorneys argued the development would occur quicker or better with a TIRZ. That is not in the tax code. The implication of that argument is there would no limit about where a TIRZ is applied. They could always argue that would be better development or it would happen quicker.”

Aleshire added that before the council approved the TIRZ, “I was emailing council members to tell them that instead of creating a TIRZ they should establish a PID (Public Improvement District), in which property owners pay extra to get the extra benefits. That would have been ethical and legal way to do it.”

(Disclosure: Bill Aleshire has twice represented the Bulldog in successful lawsuits against the City of Austin for failure to supply information under the Texas Public Information Act. He also assists the Bulldog in filing public information requests.)

In a statement issued by plaintiffs’ attorneys at 6:10pm today, Bunch stated, “The City is legally required to show that the land is blighted and would not develop without public subsidies. The City failed to present any evidence that public funds were needed for the land to develop.”

Bunch further noted that “Judge Mangrum’s decision means that the $354 million in city property taxes can remain in the city’s general fund and go for real public needs, such as public safety, parks, streets, and other resident needs—and not to subsidize corporate welfare for wealthy, private developers.”

Trust indicators: Ken Martin has been doing investigative reporting in the three-county Austin metro area since 1981. Email [email protected].

Related Bulldog coverage:

Are tax subsidies for luxury development legal? January 8, 2024

Lawsuit seeks to halt tax dollars for luxury development, April 24, 2023

Lame duck council set to vote on 20-year sweetheart tax deal for developer, November 28, 2022

Environmentalists assail plan for lakeside high rises, October 4, 2022

Council revives plan to use ‘blight’ law to subsidize luxury high rises, July 28, 2022

Luxury subsidy deal stalls at council, February 3, 2022

Luxury real estate to get special tax status under ‘blight’ statute, December 21, 2024

Austin City Manager: Dallas discard vs Austin retread

This chart shows the eight Austin city managers who served over the past half-century.

Council members make policy. The city manager’s job is to implement those policies.

A great city manager can get that done and keep the ship of state sailing smoothly. A good city manager can get most assignments done and avoid letting the ship of state crash into rocky shoals. A poor city manager will smash the ship of state into the icebergs that bob in the waters and bring disaster for all hands on deck.

Spencer Cronk

A winter storm that coated Austin with thick ice February 1, 2023, led to the firing of the previous city manager, Spencer Cronk. Mayor Kirk Watson had been in office less than a month when the storm hit and Watson lit into Cronk “because the management of this situation and the lack of clear, timely and accurate communication has left our community in the dark.”

In a special-called meeting of February 15, 2023, the City Council voted 10-1 (Council Member Natasha Harper-Madison opposed) to send Cronk packing with a severance package that totaled $463,000.

Ora Houston

When Cronk was selected as Austin’s city manager in February 2018, Ora Houston was on the City Council and seconded the motion to hire 38-year-old applicant. “He was young and gay and we wanted to be progressive,” she told the Bulldog. “And the mayor (Steve Adler) could control him,” she added.

If Austin’s current City Council picks from among the two finalists, our next city manager will be neither young nor progressive.

Meanwhile, Jesus Garza, who held the top job for more that eight years from 1994 through early 2002, has been holding the fort as interim city manager since Cronk hit the door.

The finalists for the permanent job are T.C. Broadnax Jr. of Dallas and Sara Lynn Hensley of Denton.

Is this the best Austin can do?

In a perfect world there would be stronger candidates competing to lead Austin’s vast bureaucracy into a brighter future. Neither of the two choices before the council seem ideal.

The seemingly more dynamic finalist, Brian Platt of Kansas City, Missouri, bowed out early on. He used his Austin opportunity as a bargaining chip to wangle a better paying contract where he is.

Broadnax, 55, has led a more populous city than Austin. But for years he has been embroiled in continual conflict with the Dallas City Council, a majority of which engineered a request for his resignation so that he could get severance pay.

By Broadnax’s own admission he fell far short of satisfactory performance on a range of big problems facing Dallas.

Hensley, 67, has earned good marks for her work in managing Denton, a small city government with a workforce that’s just one-fifteenth the size of Austin’s sprawling municipal bureaucracy.

She headed Austin’s Parks and Recreation Department for more than eight years (2008-2017), then served as interim assistant city manager for two years before retiring in 2019.

But the departments she oversaw as an interim assistant city manager were the Parks Department that she had headed and an assortment of others that—in the big scheme of things—offered no big challenges: animal services, public health (long before the Covid pandemic), library, and real estate services.

Austin needs a city manager who meets the gold standard. But that isn’t what it’s going to get. With these two candidates to choose from, the Austin City Council has slim odds of grabbing even a diamond in the rough.

The finalists, both from north Texas

T.C. Broadnax

Dallas—T.C. Broadnax Jr. manages the nation’s 9th largest city and draws an annual salary of $423,247, according to his personnel file obtained with a public information request. He is Black and not a veteran, the file states. His personnel file contains no written performance evaluations, which isn’t unusual. The Austin City Council does not evaluate city managers in writing either.

Because Broadnax resigned at the request of council majority he is entitled to a lump-sum payment of a year’s base salary and reimbursement of up to 12 months for the cost of continued health benefits for him and his dependents, according to the employment agreement in his file.

Dallas is a city of 1.3 million people, but the population shrank by almost 5,000 people (minus 0.37 percent) between the 2020 census and the 2022 population estimate. More than 16,000 employees were authorized within the city’s current budget of $3.8 billion, although Broadnax cited 13,000 in his resignation letter. (Austin’s budget, which is $5.5 billion, authorized 16,141 employees.)

The Dallas governing body consists of 15 council members. The mayor is paid $80,000 annually, council members get $60,000. (Austin’s mayor is paid $139,568, council members get $121,347.)

Dallas’s electric power is supplied by an investor-owned utility but the city is involved in managing two airports. Those are Love Field, the inner-city facility the city owns, and DWF International, which Dallas jointly owns with the City of Fort Worth.

The résumé that Broadnax submitted with his Austin application states that in 1991 he earned bachelor of arts degrees in communications and political science from Washburn University in Topeka, Kansas, and in 1993 got a master’s in public administration from the University of North Texas in Denton.

A Dallas Morning News article published June 10, 2022, states that Broadax was married with five children. His owns a home in Dallas with his spouse, Andrea Kay Broadnax, according to records of the Dallas Central Appraisal District.

Sara Hensley

Denton—Sara Lynn Hensley was appointed city manager March 1, 2022. Denton is the  nation’s 177th largest municipality. She currently earns $303,417 a year, according to a contractual update contained in her personnel file obtained with a public information request. The file indicates she is White and a U.S. Air Force veteran.

Denton has slightly more than 150,000 people, a number it grew to between 2020 and 2022 by adding almost 10,500 people (plus 7.5 percent).

Hensley’s personnel file contains numerous documents that are labeled “performance reviews.” However they do not show the City Council’s evaluations of her performance. Instead they consist of lengthy lists of accomplishments by each of the city’s departments.

Interestingly, these reviews reveal a collaborative leadership approach that includes statements solicited from department heads in response to Hensley’s three questions: “How am I doing? What can I do to assist you more? Where would you like me to focus over the next year?”

Denton’s current year budget of $933 million authorized 1,048 employees. The governing body consists of seven people who consider themselves volunteers. The mayor is paid a stipend of $12,000 a year, while other council members get $9,000.

Denton owns its electric utility and since 2021 has supplied its customers with 100 percent renewable energy from wind and solar. The city also owns Denton Enterprise Airport, which bills itself as the “busiest general aviation airport in Texas,” serving to relieve private aircraft traffic from DFW International and Love Field.

Although Hensley retired from the City of Austin in May 2019 to take a job in Denton, she still has roots in Austin. She owns a home in southwest Austin’s District 8 with her spouse, Ramey Lynn Hees. They purchased the home new in November 2008, according to records of the Travis Central Appraisal District. That house has both homestead and over-65 exemptions. Denton Central Appraisal District records show no record of property ownership.

Her Austin city manager application states she earned a bachelor of science and master of education degrees from the University of Arkansas and held adjunct professor positions at several universities, including Texas State in San Marcos. The University of Arkansas verified that Hensley’s bachelor of science degree in physical education was granted in January 1980 and her master of education degree in recreation was conferred in August 1981.

Broadnax heavily criticized in Dallas

Broadnax submitted his application for the Austin job February 25th, the day before Austin’s deadline—four days after giving the Dallas City Council notice of his resignation effective June 3rd.

As would be expected, his application cover letter brags about numerous accomplishments.

“I have provided executive leadership and strategic direction to tackle the city’s urgent and complex problems with particular emphasis on public safety, housing and homelessness, transportation, economic development, and authentic community engagement,” the letter states.

“I prioritized investments in the development of a mobile crisis response team, a violence interrupters program, supporting formerly incarcerated individuals, and strengthening accountability through the establishment of the Office of Community Police Oversight,” the letter states.

Dallas is a big city with an active press corps to keep tabs on city government. And most of the coverage of Broadnax’s performance as city manager has been negative.

Police oversight shortchanged—Broadnax’s claims about police oversight—established nearly five years after Dallas voted for an overhaul—are at odds with this month’s March 8th article in the Dallas Morning News.

The article identified seven obstacles facing the City’s civilian police watchdogs. One was inadequate funding. The oversight office’s budget is $785,000, the article states, compared with $4.93 million budget for Austin’s counterpart office—despite the fact Austin has about half the police officers.

The Dallas police oversight director left that job last September. The job opening wasn’t posted for four months. And “the city manager (Broadnax) told the Dallas Morning News he’s in no rush to fill the job.” Further, the interim director’s background is in human resources—not criminal justice, according to some members of the Dallas Community Police Oversight Board.

“Plagued by confusion and uncertainty,” is how another Dallas Morning News article described the city’s police oversight, but added that Broadnax had been praised for pushing to focus on racial equity, leading through the pandemic, and establishing an office of Homeless Solutions.

An experienced manager—The Dallas City Council hired Broadnax to start work February 1, 2017. By then he had served in local government jobs for 24 years, including Broward County and the City of Pompano Beach, both in Florida; then Tacoma, Washington, a city of slightly more than 200,000 people where he was city manager for five years before doing to Dallas. Still, Dallas with a population of 1.3 million, was a huge step up for Broadnax.

His last official day on the job in Dallas is June 3rd, ending seven years of service. He has been at odds with the Dallas City Council for many of those years—and in very public ways.

Eric Johnson

A rocky tenure—Mayor Eric Johnson, elected in May 2019 after nearly a decade as a state representative and Democrat, tried to oust Broadnax in 2022 but could not round up quite enough support from others on the 15-member City Council. (In September 2023 Johnson switched his affiliation to the Republican Party.)

In fact, it was Dallas City Council members who—behind Johnson’s back—maneuvered in February 2024 to round up the eight votes needed to ask Broadnax to resign.

Bad press common—Press reports that summed up their evaluations of Broadnax’s performance as he departs as Dallas city manager have not been kind.

Monty Bennett,  publisher of The Dallas Express, stated in a May 19th article that Broadnax was a “terrible city manager,” adding that during his tenure at city hall, “the City has dropped in performance in every area that The Dallas Express measures.”

Bennett cited increases in crime, dirty streets, and rampant homelessness as major problems not adequately addressed.

The Dallas Morning News was even less kind. It published an opinion piece by longtime columnist Dallas Cothrum headlined, “Broadnax leaves Dallas worse than he found it.”

Cothrum wrote in a February 23rd article that Broadnax leaves a “legacy of disasters” including failure of a new trash collection program and an ongoing inability to timely process applications for building permits—a huge backlog of which nearly got him fired in 2022.  That same year the police department somehow deleted some eight million records, WFAA reported.

“Always curt, his manner lately has veered into outright rudeness with council members,” Cothrum wrote. “Broadnax was often reluctant to answer the questions of his bosses, who are elected by the people.” Broadnax made little effort to collaborate with community leaders and often bristled at questions posed by reporters.

Cothrum noted that Broadnax hired Dallas’s first female police chief in 2020 and stood by her for several years despite failures to reduce crime and police association calls for her removal. Things didn’t improve till she was finally replaced.

WFAA wrote June 13, 2022 that Broadnax had been asked to resign, and noted the “divide between the city manager and council members goes back to early 2019.” That’s when the Dallas Police Department was missing hiring goals, the 911 call center had a staffing shortage, and there was a “huge backlog of permit delays.”

Broadnax admits shortcomings—On June 21, 2022, KERA reported that Broadnax would keep his job and quoted him saying that he recognized he hadn’t handled some issues in a way that is “up to my own standards. I know my team and I can do better. I understand that I am fully accountable to my 15 bosses. So today, I want to say to the mayor, to the members of the City Council, and to all the residents of this dynamic city: I accept the challenge.”

On February 21, 2024, the Texas Tribune quoted a statement from Broadnax regarding his farewell to Dallas. “It is my hope that my departure provides the City Council with an opportunity to reset, refocus, and transition to a new city manager that continues to move the City forward and will allow for a more effective working relationship with the Mayor and the City Council moving forward.”

How Hensley performed in Denton and Austin

Hensley submitted her application for the Austin city manager’s job right on deadline, February 26th.

She is no stranger to Austin city government. City Manager Marc Ott hired her in November 2008 to be director of the Parks and Recreation Department (PARD). After working for the city of Austin for more than a decade, Hensley retired in May 2019 to take a job as assistant city manager of Denton.

Marc Ott

Ott left the city manager’s job in October 2016 and then became CEO and executive director of the International City/County Management Association, based in Washington, D.C. Although he would know better than most anyone how Hensley performed as a department director for eight years, he declined an interview for this article. “It would not be appropriate to comment as if I’m trying to influence the selection of the city manager,” he told the Bulldog, through a spokesman.

Hensley came to Austin after serving as director of parks and recreation departments for the cities of Virginia Beach, Virginia 1997-2002, San Jose, California 2002-2006, and Phoenix, Arizona 2006-2008. Her starting salary in Austin was $163,000 per year, according to her Austin personnel file, obtained with a public information request.

In February 2017, after Ott had departed and while Elaine Hart was serving as interim city manager, Hart moved Hensley into a bigger role as interim assistant city manager for a one-year term.

Hensley’s interim assistant city manager post started in June 2017 and put her in charge of the Animal Services Office, PARD, Austin Public Health, the Austin Public Library, and the Office of Real Estate Services, according to Hart’s memo on organization changes contained in Hensley’s Austin personnel file.

When Spencer Cronk was hired as city manager starting in February 2018, he kept Hensley on as interim assistant city manager, “…so that I can continue to orient myself to the needs of the City as a municipality an as an employer,” Cronk’s letter confirming the extension stated.

Hensley’s role as interim assistant city manager ended in February 2019 and three months later she retired at age 62—not to ride off into the sunset but to take a job as assistant city manager of Denton. Her resignation letter, contained in her personnel file, mentioned that she was pursuing career goals and “this opportunity supports growth in that direction.”

In Denton she was soon appointed deputy city manager and in February 2021 was appointed interim city manager.

On  March 2, 2022, the Denton City Council voted unanimously to make Hensley Denton’s first female city manager. If she’s selected as Austin’s new city manager Hensley will be the third woman to occupy that position. (Camille Barnett was the first, serving from 1989-1994. Toby Futrell was the second, serving from May 2002 till the end of 2007.)

Gerard Hudspeth

Denton Mayor Gerard Hudspeth, the first African American to win that job, praised Hensley’s performance. In a telephone interview he told the Bulldog she had served as assistant city manager during the pandemic, the winter storm, and managed responses to protests over the May 25, 2020, murder of George Floyd and removal of a confederate monument on Denton County property in June 2020.

“It was contentious,” Hudspeth said of the two protests. “Those were not city issues but the city had to deal with them.”

Hudspeth said he also liked Hensley’s performance on other issues. Those include litigation against the Electric Reliability Council of Texas after Winter Storm Uri. And he praised her selections in appointing new assistant city managers as well.

The pot problem—But it wasn’t all smooth sailing for Hensley. One particularly contentious issue cropped up when on November 8, 2022, voters overwhelmingly approved an ordinance to decriminalize misdemeanor marijuana offenses.

The measure got on the ballot because of a petition drive led by Decriminalize Denton and Ground Game Texas. Despite 32,000 votes for the proposition, City Manager Hensley refused to implement the ordinance.

The Denton Record-Chronicle quoted her in a March 8, 2023, article: “I’ve said it a thousand times and I’ll say it again, I do not direct the police chief. He gets his oath from the state of Texas,” Hensley told council members. “I could tell him to break the law, but that is not what I will do as a professional.”

Mike Siegel

Hensley maintained that hard-line stance despite a legal brief supplied to the Denton mayor and council members by attorney Mike Siegel, cofounder and general counsel for Ground Game Texas. Siegel is currently a District 7 candidate for Austin City Council, as the Bulldog reported.

Siegel’s brief states the proposition was approved by 71 percent of Denton voters and should have taken effect as soon as the election results were canvassed.

“The Texas Constitution and the City Charter of Denton guarantee the people of Denton the right to directly legislate on local issues, including marijuana enforcement reform. The City Manager has no authority to ignore or subvert legislation duly enacted by the people,” the brief states.

“[N]o City has ever been subject to challenge,” the brief states, “including the City of Austin, which on May 7, 2022, adopted a city ordinance that includes marijuana decriminalization.” That ordinance was approved by 85.5 percent of voters, according to the City Clerk’s website, and included a ban on “no knock” warrants by Austin police.

The brief notes that the Texas Legislature legalized hemp in 2019, including smokable hemp products that are “virtually indistinguishable from illegal smokeable marijuana.” Which is why Austin and many other Texas municipalities quit enforcing possession of small quantities. Prosecutors can’t push a case without first obtaining expensive lab testing that would distinguish legal hemp from illegal pot.

Julie Oliver

Siegel did not return numerous voice messages to comment for this story, for his take on encounters with Hensley in Denton. Perhaps that’s because his fellow Ground Game Texas cofounder, attorney Julie Oliver (like Siegel a two-time congressional candidate) was one of the 39 people who submitted applications to be Austin’s next city manager.

The expense and impracticality of trying to enforce marijuana possession didn’t stop Texas Attorney General Ken Paxton from suing Austin, Denton, Elgin, Killeen, and San Marcos.

The 15-page petition in State of Texas v. City of Austin et al filed January 31st in Travis County states that Austin’s ordinance and the Austin Police Department General Order “constitute an order under which Austin will not fully enforce laws relating to drugs….” State law makes possession of marijuana and drug paraphernalia an offense. Governing bodies and municipal police may not adopt a policy not to fully enforce laws relating to drugs.” (Cause No. D-1-GN-24-000586).

The litigation seeks a temporary and permanent injunction ordering the ordinance be repealed and the police general order cancelled. The mayor and council members were served with notice of the litigation March 4 but no other action has been taken on the case, according to the Case Summary published on the Travis County District Clerk’s website.

A city spokesperson provided this statement: “The lawsuit is ongoing, and the City will address the allegations raised in the lawsuit, including any APD or City policies at issue as part of the court process.”

As for Denton being sued by Paxton, Decriminalize Denton has filed to request that suit be dismissed. “Because Denton’s City Manager and Police Chief have consistently refused to implement the ordinance since Day One, and because Denton City Council has consistently refused to make them, Paxton cannot show that the ordinance has harmed the state in any way, regardless of his erroneous claim that the ordinance violates state law,” the Denton Record-Chronicle reported February 5th.

This story was updated at 4:38pm March 25, 2024, to correct an error about who was the first female city manager: It was Camille Barnett. Toby Futrell was the second.

Trust Indicators: Ken Martin has been reporting on and investigating local governments since 1981. Contact him at [email protected].

Related Bulldog coverage: 

Extended outages put manager’s job on thin ice, February 8, 2023

City manager to get raise if employees do, August 24, 2012

No raise, no praise for city manager Marc Ott, August 17, 2012

City manager’s annual review postponed, August 3, 2012

City manager faces crucial annual review, August 1, 2012

Will lawsuit blow up Project Connect train tracks?

Plaintiffs in the lawsuit Dirty Martin’s et al v. Mayor Kirk Watson et al claim they’re victims of a bait-and-switch scheme because Project Connect will deliver improvements vastly inferior to what voters were promised when they approved Proposition A (Cause No. D-1-GN-23-008105).

Voters approved Proposition A on November 3, 2020, by a thumping 58-42 percent margin. In doing so, the 242,457 people who voted “yes” agreed that all City of Austin property owners would shoulder an extra 8.75 cents increase in property taxes per $100 valuation, which amounted to a 20.788 percent increase in the City’s Maintenance and Operations property tax. And carry that increased burden dedicated solely to pay for Project Connect improvements for decades.

Those nearly quarter-million voters bought into—and agreed all property owners should pay for—a $7.1 billion plan for a magnificent new comprehensive transit plan.

A 20-page, four-color brochure about Proposition A illustrated the vision for Project Connect. That included 27 miles of new rail service including two new rail lines, expanded bus service with an all-electric fleet, nine new park-and-ride facilities, and much more. Part of the proposal called for creating a downtown subway running through a tunnel with six underground stations featuring escalators, elevators, stores, restrooms, and other amenities.

Less than a year and a half after the election, in April 2022, that grand vision was dashed. That’s when Austin Transit Partnership, (ATP), the local government corporation jointly created by the City of Austin and Capital Metro to implement Project Connect, updated its financial estimates. The new figures showed the cost of the light rail portion had ballooned from $5.8 billion to $10.3 billion.

Because of the rising cost estimates, in May 2023 the light-rail implementation plan was whittled to fewer than 10 miles of track, all above ground. No subway. It wouldn’t even connect a rail line to Austin-Bergstrom International Airport—which was specifically mentioned in the ballot language for Proposition A.

ATP financing ‘illegal’ plaintiffs claim

Project Connect improvements were to be built under contracts authorized by ATP and funded by bond debt. The City was to collect the voter-approved property tax revenue and transfer it to ATP to pay that debt.

Legislation known as the “No Blank Checks Act,” which died in the last days of the 2023 regular session of the Texas Legislature, would have barred this method of bond financing.

House Bill 3899 as amended by the senate based on an Attorney General Opinion KP-0444, would have prohibited ATP, as a local government corporation, from issuing bonds to be repaid from Maintenance and Operations property taxes transferred to ATP from the City of Austin.

That’s because property tax revenue is subject to annual appropriation by the City Council and could be stopped altogether. The attorney general’s opinion stated that the Tax Code “does not authorize a municipality to ‘earmark’ use of a voter-approved increase in its maintenance and operations property tax revenue for debt service….”

Instead, ATP would have been allowed to issue bonds only if those bonds were approved by voters in an election held for that purpose, to include a plain language description of the purposes for which the bonds are to be authorized, the principal amount not be exceeded in bonds issued, and the maximum maturity date of the bonds not to exceed 40 years.

If HB 3899 had been enacted, Project Connect would have been halted until a new election was held and voter approval was gained specifically to issue bonds.

Picking up where the AG left off with the opinion criticizing ATP’s financing plan, plaintiffs Dirty Martin’s et al filed suit in November 2023.

ATP pushes for $150 million in bonds

Despite Dirty Martin’s potential threat to its financing plans, the ATP Board of Directors on February 16, 2024, adopted a 161-page Master Trust Agreement to establish a financing program not to exceed $5 billion.

The board that day also adopted a resolution to issue ATP’s initial bonds not to exceed $150 million “secured by a pledge of the Contract Revenue Payments received from the City under the Funding Agreement….”

In furtherance of ATP getting a court’s approval to issue those bonds, the City of Austin filed an 18-page petition for expedited declaratory relief February 20th. The petition seeks to validate the financing plan for the light rail components of Project Connect.

The City’s petition states that by passing Proposition A, voters authorized the City to increase the property tax rate and to dedicate the additional revenue to ATP to finance and implement Project Connect. The petition claims that the funding agreement was amended to address potential issues raised by Attorney General in May 2023 (i.e., Opinion KP-0444).

“[T]he Dirty Martin’s lawsuit is a direct challenge to the validity of the Funding Agreement, the Initial Bonds, and the Financial Program,” the petition states. “Nonetheless, this bond validation action may be maintained ‘regardless of whether another proceeding is pending in any court relating to a matter to be adjudicated’ in this lawsuit.”

The City’s petition asks that after a final hearing the court enter a judgment declaring the City can levy and collect taxes voters approved in Proposition A; that the City is authorized, subject to appropriation, to pay the Proposition A revenue to ATP; and ATP is authorized to pledge these payments as security for repayment of initial bonds.

Which raises an interesting situation: While future City Councils would not technically be bound to appropriate annual Project Connect Taxes that are needed to provide security for the $150 million in initial bonds, they might be honor bound to do so.

Brian Rodgers

The precedent for doing so exists. Brian Rodgers sued the City of Austin and Endeavor Real Estate and reached a settlement in 2004 that said the agreement that gives millions of dollars in rebates of sales and property taxes for the high-end Domain shopping center would be strictly voluntary. The city was no longer obligated to fund the agreement, and Endeavor gave up its right to sue. The city chose, however, to continue paying.

Dirty Martin’s persists

In response to the City’s request for bond validation, plaintiffs Dirty Martin filed an amended 53-page petition March 14th. The petition provides extensive details to show how the scope of Project Connect’s implementation plan was vastly reduced.

“Now, most of Austin receives no rail service whatsoever but still require more than a 20 percent annual tax increase to pay for limited service elsewhere,” the petition states.

The petition again states that property taxes levied annually for the city’s maintenance and operations purposes cannot legally be used as security for ATP’s long-term debt.

Dirty Martin’s petition asks for injunctive relief to prohibit the City from continuing to assess or collect the Project Connect Tax and to prohibit the ATP from issuing bonded indebtedness.

In addition the plaintiffs ask that ATP return to the City any unencumbered Project Connect Tax funds on hand and require the City to refund those unspent Project Connect Tax funds to taxpayers via credit to reduce the 2024 City of Austin tax rate.

AG’s weighs in, favors Dirty Martin

Attorney General Ken Paxton filed an 11-page petition March 15th, stating that the funding agreement for the City of Austin to use Proposition A revenue to pay ATP is invalid and cannot be used as security for bonds.

The petition states, “The City attempted to create a contract with the voters that Section 26.07 of the Tax Code did not authorize. Section 26.07 is a truth-in-taxation statute, authorizing a higher maintenance tax rate upon voter approval; it is not a vehicle through which the City can funnel for unlimited duration a portion of its maintenance tax for a billion-dollar capital improvement project to pay debt service on its local government corporation’s bonds.”

Bill Aleshire

Plaintiffs’ attorney Bill Aleshire said in a March 15th email, “Today, the Office of the Attorney General of Texas filed a devastating rebuke to the validity of the Project Connect bonds and joined us in attacking the entire funding mechanism…

“You are seeing the beginning of the end of the biggest con job ever perpetrated on the taxpayers of Austin. When all is said and done, I expect the final court decision to result in a rollback of the almost 21 percent Austin property tax increase being used (for) Project Connect and a refund of hundreds of millions of those dollars that ATP has on hand, unspent.”

As of July 2023, according to Dirty Martin’s amended petition, the City has so far paid ATP $464.2 million collected from the Project Connect Tax.

“If Austin ‘leaders’ want mass transit in Austin, they should immediately stop Project Connect, cancel the illegal tax increase, and go back to the voters with an affordable plan, with an honest price tag, and see if voters will authorize bonds, i.e., the legal way taxpayer debt is incurred,” Aleshire said.

(Disclosure: Aleshire has represented The Austin Bulldog in three lawsuits, two of which were actions against the City of Austin for failure to comply with the Texas Public Information Act. He continues to represent the Bulldog in public information requests.) 

The City of Austin has a different opinion.

“The City just received the AG’s pleading,” a City spokesperson told the Bulldog. “We disagree with the AG’s assertions and are certain the court will allow the City and ATP time to file responses.”

This story was updated at 1:35pm March 18, 2024, to correct misstatements about: the tax increase approved by Proposition A, the prohibition on funds transferred to ATP, and the source of the statements about an ‘earmark.’

Trust Indicators: Ken Martin has been reporting on and investigating local governments since 1981. Contact him at [email protected].

Related Bulldog coverage:

Project Connect scope drastically scaled back, March 30, 2023

Austin Transit Partnership gears up for key decisions on light rail design, March 16, 2022

Price tag for CapMetro buses tops $1 million apiece, September 29, 2021

Austin Transit Partnership approves $312.8 million budget, September 17, 2021

Transit tax draws attack from the left, October 2, 2020