Texas AG opinion questions Project Connect funding
by: Chrissy Mazzone
Posted: May 20, 2023 / 01:41 PM CDT
Updated: May 20, 2023 / 01:41 PM CDT
https://www.kxan.com/news/local/aust...nnect-funding/
AUSTIN (KXAN) — Texas Attorney General Ken Paxton issued an opinion Saturday morning related to Project Connect, Austin’s multi-billion dollar plan to expand public transportation. The opinion comes after an inquiry from Texas Senator Paul Bettencourt.
The opinion highlights two potential issues. One relates debt and tax structure. It points to the city’s intention to use the maintenance and operation tax to pay down debt. The attorney general concluded that the Texas tax code “does not authorize a municipality to “earmark” use of a voter-approved increase in its maintenance and operation property tax revenue for debt service.”
Another issue the legal opinion raises is related to how the Austin Transit Partnership, the agency set up to implement Project Connect, is funded by the tax. The opinion found, if brought to a court, a court would likely conclude that since the tax structure is not subject to an annual appropriation, it is prohibited by Article XI, Section 5 of the Texas Constitution.
It’s not clear yet what this means for the future of the project. It’s worth noting, this is an opinion, which is an interpretation and non-binding.
This is not the only challenge to Project Connect. A Senate committee Friday moved to advance House Bill 3899. Dubbed the “No Blank Checks Act,” it would require voters to sign off on all the following components related to a project:
What the debt would be used for
How much debt product leaders need to issue
The tax rate needed to pay back the debt
The bill is authored by State Rep. Ellen Troxclair. The former Austin City council member is one of five representatives to co-author the bill in the Texas House, while Sen. Paul Bettencourt filed an accompanying version in the Texas Senate.
Meanwhile, the public will find out within the next week which scaled-down version of Project Connect will move forward. Project Connect leaders are expected to deliver a final design recommendation at the Austin Transit Partnership’s May 24 meeting, with an official vote and decision expected June 6.