Austin’s slowly shrinking vision for a fast-moving urban rail system by the end of the decade is about to face a new challenge, one that could upend the voter-approved transit expansion: property tax warriors in the Texas Legislature.
New bills challenging the Austin Transit Partnership's (ATP) powers to borrow money come as the organization is about to unveil a set of scaled-back light-rail options that fit within the original $7.1 billion Project Connect budget.
Rail opponents are seizing on the moment, accusing Austin leaders of having oversold their plan to get it passed by voters in 2020 and calling on the Republican-dominated state Legislature to throw a wrench in the gears.
"This town got bamboozled," said Gerald Daugherty, a former Travis County commissioner who has spent decades fighting Austin's light-rail initiatives, including the most recent one that increased city property taxes by 20%. "The lege has to step up and do the right thing."
Gerald Daugherty, former Travis County commissioner, has spent decades fighting Austin's light-rail ambitions.
The proposals — House Bill 3899 and Senate Bill 1791 — would force the ATP to hold a citywide election before borrowing large amounts of money to pay for the expensive upfront costs of building the light-rail system. ATP estimates it would need to borrow up to $2.5 billion and plans to repay the money with its existing stream of tax revenue.
Supporters of the bills say if Texas cities and counties have to hold elections before borrowing money and paying the debt back with property taxes, then the Austin Transit Partnership should have to hold bond elections, too.
"The intention is simply to require that they follow all of the transparency requirements that are already in state law for any other taxing entity," said Republican state Rep. Ellen Troxclair, a former Austin City Council member who wrote the House bill. "They've kind of found a loophole and are exploiting it."