Texas AG Intervenes in Lawsuit Over Austin's $Billion Light Rail Project

Lawyers with Texas AG Ken Paxton's office filed an interlocutory appeal Monday, derailing a trial set to determine the legality of Austin's planned light rail project, Project Connect. The trial, set to take place in Travis County, was initiated by a group of plaintiffs, including the owner of Dirty Martin's Place and a former Democratic state senator, who claim the city misled voters on the project and associated property tax hikes.

The Players

• Plaintiffs: Led by attorney and former Travis County judge Bill Aleshire, this group alleges that Austin and ATP board members misled voters, seeking to stop property tax funding for the project and bond issuance without further voter approval.
• City of Austin and Austin Transit Partnership (ATP): This duo is defending their financing model, arguing it's legally sound and that challenges aim to undermine voters' will. Their plan: ATP issues municipal bonds, backed by tax revenue from the 2020 approval.
• Texas Attorney General Ken Paxton: He opposes the light rail, deeming the financing model likely illegal and asserting that Austin misled voters. Paxton's office has now intervened, asking the 3rd Court of Appeals to rule on the lower court's jurisdiction to hear the case, effectively stalling trial proceedings.

What's At Stake

The financing of Austin's light rail is primarily through anticipated federal grants and ATP's municipal bond issuance. Legal and legislative challenges seek to halt or delay bond issuance, threatening the project's foundation. An unfavorable court outcome would likely force a rethink of Project Connect's financing strategy.

Sources:

• City resolution detailing tax transfer
• Previous Statesman reporting for context
• Quotes from: Greg Canally, executive director of ATP, and Bill Aleshire, attorney for plaintiffs