Texas attorney general questions the legality of Austin light-rail funding

A financing plan for a multi-billion-dollar Austin light-rail project, already under attack in the Texas Legislature, now faces concerns about its legality raised by the state attorney general. 

The controversy involves the Austin Transit Partnership, a corporation created by the city and Capital Metro Transportation Authority, and its ability to help finance the Project Connect light-rail system with yet-to-be-issued bonds paid off with property taxes passed both legislative chambers, but a Senate amendment incorporating the attorney general’s opinion will send the measure back to the House for concurrence.

“The bill with the Senate amendments effectively sticks a fork in a terribly devised financing scheme that never should have made it on a ballot,” Gerald Daugherty, a former Travis County commissioner and a member of a group supporting the so-called No Blank Checks bill, said in a statement. “It’s time the city of Austin and CapMetro go back to the drawing board and work on a transit plan that can be funded in a way that’s real, clear, legal and transparent.”

Austin Mayor Kirk Watson signaled last month that city voters will likely be asked in November to approve bonds for the project, which is also counting on federal funding.

As cost estimates rose to $10.3 billion last year from $7.1 billion in 2020, Austin Transit Partnership in March unveiled five lower-cost options for the light-rail system that carry a price tag of about $5 billion each and would take as much as 10 years to complete.