Saturday, March 4, 2017

#ATXCouncil "indefinitely postpones" cost of living relief....


"Wealth gained by dishonesty will be diminished,
But he who gathers by labor will increase."
Proverbs 13:11

[Author's Note: The Statesman has a cynical, though plausible, analysis of the politics here.]

In what can only be described as a crying shame, on Thursday a 6 to 5 majority on the Austin City Council voted to "indefinitely postpone" council member Ellen Troxclair's proposed affordability action plan.  The vote doesn't kill the action outright (why would they have the guts to do that?!?), but it does take the planning process back to square one.  That being said, absent a public backlash, it's hard to see how this returns in anything resembling its current form.

The plan, in which Troxclair was joined by council members Flannigan, Houston, Kitchen, and Mayor Adler, had at least twenty components.  We'll include a PDF of the full proposal below this write up, but suffice to say that it reflected individual priorities voiced over the years by each of the five co-sponsors.  From our perspective, tangible metrics for aggressive housing construction, simplification of permitting, biennial performance reviews for all city departments (how are they not doing this already?!?), creation of a "no tax increase" option for council during budget season, creation of a similar "no rate or fee increase" option for city utilities, ensuring projects from the 2016 transportation bond are completed on time and on budget, and a fair regulatory environment for mobility service providers (ie. starting with, but not limited to, Uber and Lyft) packed the biggest punch.  As a team effort from five individual council members it wasn't perfect, and there were a few things in there that we're not crazy about, but it was nevertheless a significant step forward.

The initiative was supported by a diverse array of community partners, including the Independent Business Alliance, the NAACP, the Austin Tech Council, the Hispanic Contractors association, the Real Estate council, and Goodwill industries (yes, THAT Goodwill).  Not that we're always crazy about their priorities, but even the Austin Chamber of Commerce supported this approach.  When are the Independent Business Alliance and the NAACP ever on the same side of anything?!?

We didn't keep a tally during public testimony, but our informal guess is that it ran 2 to 1 in favor.  Space limitations make it impossible to catalog everything, but a few moments stood out.  The CEO of Kerby Lane cafe discussed how it's becoming prohibitively difficult to open restaurants in Austin because the majority of employees can only afford to live in (*shudder*) Williamson county.  The representative from Goodwill pointed out that, even if we don't agree on all the specifics, getting this diverse of a coalition to support a measure was significant in and of itself.  Personally, we were struck by a slide from a representative of the real estate industry that showed house prices have nearly tripled in the past decade.  From the opponents, we were struck by a gentleman named Gus Pena who protested that the plan didn't do enough for the homeless while overlooking that it would produce significantly more housing.

During dais discussion, Council member Garza passed the buck to Austin ISD and the state over robin hood; she's not exactly wrong, but her point is irrelevant as long as the city refuses to take care of business in its' own area of jurisdiction.  Pio Renteria offered hyperbole about laying off police officers while similarly refusing to accept the city's share of responsibility.  Greg Casar at least had the courage of his convictions to advocate for a housing bond and "workforce development programs" for "low and moderate wage workers."  On the one hand, we appreciate Council member Casar advocating an alternative policy; on the other hand, we've taken this approach for decades, and
the results seem meager.  If the last billion dollars didn't accomplish your goal, and if the billion before that didn't accomplish your goal (to say nothing of all of the untold previous billions going back to the 1930's)...why is the next billion is going to be different?!?  Furthermore, the city has had record revenues at its disposal every year of the 10-1 council and the idea that widespread budget cuts are coming anytime soon seems...far fetched.  In a city where the median income is less than $33,000 and the median city employee makes around $60,000 lightening the burden on the people paying the bills doesn't seem unreasonable.

[Note: You can read a press release from the council members who opposed the plan here.]

But (no surprise here) the cake was taken by Kathie Tovo.  Tovo spoke about all of the allegedly wonderful work council has done on affordability since she campaigned on the issue in her first (2011) campaign.  Unfortunately, by whatever metric you choose (housing costs, property taxes, utility rates) affordability has gotten worse over the past six years.  Perhaps the time has come to try a new approach?!?  To be honest, Tovo sounded a lot like UT Football fans making excuses for Charlie Strong in that she just "needed more time."  Well, similarly to Charlie Strong, there comes a time when you have to stop grading on intentions and start grading on outcomes.  What did Einstein say about trying the same thing over and over again and expecting a different result?!?

Bottom Line: Any serious attempt to translate "affordability" from a vague buzzword into tangible relief requires addressing housing costs, city spending/taxes, and utility rates/fees.  Thursday's proposal, while far from perfect, would have represented a significant step forward on all three.  Unfortunately, the council majority chose to protect privileged bureaucrats at the expense of struggling renters, local businesses, and homeowners.  Total missed opportunity.  It's a damn shame....

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Our testimony:



Full public testimony/dais discussion:



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The full proposal:

Friday, March 3, 2017

Zerwas now floating Rainy Day Fund RAID....


"Therefore by their fruits you will know them."
Matthew 7:20

Oh HELLLLLLLLLLLLLLLLLLLLLLLLLLLL No:
The chief budget writer in the Texas House on Friday proposed using $1.4 billion from the state’s savings account to pay bills coming due for a wide array of the state’s health and human services programs.

The proposal from state Rep. John Zerwas, R-Richmond, would continue pay raises for Child Protective Services workers that state leaders ordered last year. It would also pay for renovations at the state’s aging mental health hospitals and state-supported living centers for people with disabilities.

....

The proposal comes in the form of a supplemental budget, which would plug funding holes left by lawmakers in 2015. Most legislative sessions, the Texas Legislature does not fully fund the cost of state programs, so lawmakers must typically pass a supplemental bill to cover the rest.

Zerwas’ proposal would also reverse some cuts intentionally made by the Legislature in 2015.
Read the whole thing here.

Bottom Line: No, no, no, no, no.

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Chairman John Zerwas: (512) 463-0657

Following raw sewage, UT NOW pumping chlorine into Waller Creek....


"Let no one deceive you with empty words, for because of these things the wrath of God comes upon the sons of disobedience."
Ephesians 5:6

Late last year, we amplified a KXAN report about UT literally pumping raw sewage into Waller Creek; kudos to KXAN for discovering yet another gem:



A pool at the Texas Swimming Center has been leaking water into nearby Waller Creek, the University of Texas at Austin said Thursday.

Officials with the university say they found out about the leak early Wednesday, after swim center personnel found water down in the basement, running along what would be the side of the pool.

Personnel knew the water there was unusual and soon realized there was a leak.

...

Environmental Health and Safety managers admit they’re disappointed but call each incident unique and most importantly – rare.
A few thoughts:

  • $25 BILLION endowment and they can't follow through on this level of basic maintenance?!?
    • Note: In his confirmation hearing, Regent Eltife specifically spoke about the need for the Board of Regents to be much more diligent in making sure the various campuses maintain existing facilities.  Because he's been on the Board for less than a month, we'll cut him some slack over this one.  But Regent Eltife specifically owns anything that happens after, say, the May Board meeting.
  • The silence of the enviros is deafening.
  • In a strange bit of irony, perhaps it isn't the worst thing in the world to pump chlorine into the water following two years of raw sewage.

Thursday, March 2, 2017

House Freedom Caucus outlines 85th #TXLEGE Priorities....


"As iron sharpens iron,
So a man sharpens the countenance of his friend."
Proverbs 27:17

The House Freedom Caucus held their first press conference this afternoon:



Highlights:

  •  Matt Schaefer
    • First principles and the grassroots.
    • Coordinating with grassroots.
  • Jeff Leach
    • 89 days left in session.
      • Author's Note: Move we adjourn sine die.
    • Life #1 issue -- Support ANY bill that defends preborn babies.
  • Matt Krause
    • Religious liberty isn't just a Sunday thing.
    • Parental rights a guiding principle.
    • Defending anonymous political speech.
    • Ethics reform.
    • Reduce occupational licensing.
  • Jonathan Stickland
    • Unapologetically supporting constitutional carry.
    • No state funding for unconstitutional anti-#2A federal laws.
    • Elimination of gun-free zones.
  • Matt Rinaldi
    • Budget Reform
      • Constitutional spending limits
      • Eliminate corporate welfare.
      • Property tax reform
      • Elminate Margins tax
    • Parental educational choice.
  • Matt Shaheen
    • Coordinated and unified with grassroots.
    • Already had two conference calls w/ grassroots.
  • JoAnn Fleming
    • Texas should be leading on Freedom and Liberty.
      • Author's Note: LOL
  • Q&A:
    • Grassroots will be "force multiplier" when bills are in calendars.
    • Municipal debt subcategory of transparency component.
Bottom Line: Our expectations are low, but this doesn't hurt.

Wednesday, March 1, 2017

Huberty extends middle finger to GOP Platform....


"While they promise them liberty, they themselves are slaves of corruption; for by whom a person is overcome, by him also he is brought into bondage."
2 Peter 2:19

House public education chairman Dan Huberty spoke with the trib yesterday.  We actually thought the event was going to be Thursday morning thus we didn't attend...which is killing us because we wanted to ask him about superintendent salaries.  Huberty's remarks speak for themselves:



Highlights:
  • "I've worked the last 20 years to get here."
    • Author's Note: Dude, you should be more ambitious.
  • School finance fix will take multiple sessions.
  • Long discussion of Robin Hood...but it's not going away any time soon.
  • Parental education choice: "Can we move on to the next question."
    • "I believe so, yes" in reference to question about whether or not its dead.
  • Socialized education has "an accountability system."
    • Something something "no accountability, no taxpayer responsibility."
    • Author's Note: Deliberately obfuscates the fact that accountability in the marketplace comes from the fact that parents can choose to obtain services from a new provider.
  • Blah, blah, blah...MOAR SPENDING!!!
  • Something something 5.3 million children....something something "fix" the current socialized education system before exploring any sort of creative solution.
  • Long discussion of STAAR tests.  Huberty is not a fan.  Duly noted that Huberty wants to impose arbitrary government "accountability" standards on parental choice while gutting accountability for the existing socialized education system.
  • "Your responsibility as a chairman is to protect your membership" from taking a public position on an issue about which the voters care.
  • "I think that the [socialized education] system we have has produced fruitful results."

McRaven cries UNCLE over Houston Land Grab!!!


"There is a way that seems right to a man,
But its end is the way of death."
Proverbs 14:12

Confession: We really, REALLY enjoyed this one....
Chancellor McRaven ends plan for UT project in Houston

AUSTIN – University of Texas System Chancellor William H. McRaven announced today that he is ceasing any additional efforts to launch a UT project on land it purchased in Houston last year. McRaven’s decision was based on his concerns that the project was overshadowing the extraordinary work under way on the 14 campuses of the UT System and he did not wish to do anything that could detract from the advancement of UT institutions and their presidents’ visions. Consequently he advised the Board of Regents that any further efforts on the Houston project would be stopped immediately.

“I accept full responsibility for the lack of progress on this initiative. I am grateful to the Regents, my System staff and the university presidents for their engagement over the last year,” McRaven said in a memo to Regents’ Chairman Paul Foster.

“I also offer my deepest apology to those members of the Houston Task Force who selflessly dedicated countless hours to develop a bold vision for the future of UT’s investment in Houston. I am incredibly appreciative for their support and friendship throughout this process. While we will not implement this plan in Houston, I am confident that some of the great ideas that emerged from the Task Force will be worth considering on other UT campuses,” McRaven added.

McRaven also recommended to the Board of Regents that the UT System real estate office develop a plan to divest the System of the land. Noting that it will take time, McRaven emphasized that the plan will be executed in a manner that protects the System’s investment in the property.

McRaven thanked the regents for their support and expressed his enthusiasm for working with them on many opportunities ahead.
 We attended the media availability this afternoon and got audio:



Highlights:

  • "Divesting" Houston property in "thoughtful, methodical process."
    • "Protecting our investment."
  • Goal was to produce an "Institute for data science."
  • Don't expect to lose money on property.
  • No timeline on selling the property: "The main approach will be to protect our investment."
  • "I was not able to develop a shared vision."
  • Threw in the towel the past couple days.
  • "I certainly think so" re: continued Board of Regents support.
    • Author's Note: We spoke to a source following the event who pointed out that McRaven signed a three year contract when he was originally hired...in which he is now in year three...which means there's a face saving way for them to get rid of him in a year.
    • Author's Note II: Just to be clear, the source to which we refer in the previous note never served on the Board of Regents...so it's not who you think.
  • "We are through with our expansion into Houston."
  • "I wasn't able to get the stakeholders necessary."
  • "Minor environmental issues."
  • "We've closed on most of the acreage."
  • "We're going to develop a plan and I'll submit it to the Board of Regents." re: selling the property.
  • They've spent somewhere in the mid-$20 million range so far.
  • Houston task force report being presented to the board later this week.

Following the media availability, we caught Senator Whitmire at another event who told us "I'm very pleased" about today's news.

Finally, this report in yesterday's Statesman couldn't have helped.

Bottom Line: OUCH...............................................

#TROXROX: #ATXCouncil considering Troxclair's Affordability Plan TOMORROW!!!


"Wealth gained by dishonesty will be diminished,
But he who gathers by labor will increase."
Proverbs 13:11

Ellen Troxclair sent out the following action alert last night:
This Thursday, I am bringing the Affordability Action Plan resolution to Council. This plan provides a roadmap to tackle rising taxes and fees, reform city budgeting practices, address our housing supply, and provide opportunities for our locally-owned, small businesses to thrive, among many other initiatives. I am grateful to have a diverse group of Council Members and community organizations already on board, but this may be a close vote.

....

It's no secret that we are at a critical point in our city when it comes to affordability. You gave Council a clear mandate to address the rapidly rising cost of living in Austin. In light of this, it's critical to make a pact with you and others in the community about how dedicated this Council is, and will continue to be, to addressing affordability.

....

If you can not make it Thursday, please email Council your support for the Affordability Action Plan by clicking here. Special thanks to Mayor Adler, Council Member Flannigan, Council Member Houston, and Council Member Kitchen for their co-sponsorship and invaluable help in this effort!

I will try to have this item addressed as close to 2 PM as possible, but items don't always come up in the planned order. If you need a time update, please call my office Thursday at 512-978-2108.
Read the whole thing here.

This is fantastic; any serious effort to address affordability needs to begin by understanding that surging housing costs and property taxes both drive the problem (and that there's no conflict between fixing both).

We will also confess a bit of amusement that among the five co-sponsors are four of the council members up in 2018....

...which begs the follow up question: Where are you, Pio Renteria and Kathie Tovo?!?  [Author's Note: That's a rhetorical question re: Tovo]

Bottom Line: We'll be there.