Austin Lawsuit Challenges Project Connect Funding

Austin Lawsuit Challenges Project Connect Funding

AUSTIN, Texas — A new legal challenge has emerged against Project Connect, a major public transit initiative that received voter approval and taxpayer funding. This group, which had previously filed suit over some of the project’s proposed routes, is now questioning the city’s authority to collect millions in property taxes for the project. They argue that the city is not delivering what residents agreed to when they voted to support it in 2020.

Lawsuit Details

On Tuesday afternoon, members of the plaintiff group gathered at Dirty Martin’s, a local establishment, to announce their latest lawsuit. Lead attorney Bill Aleshire stated that the lawsuit hinges on a “relatively new and untested provision” in the Texas Tax Code 16.05. This provision is said to enhance protections for taxpayers, which could potentially halt property tax collections if the tax calculations are deemed incorrect.

The lawsuit claims that the city is illegally collecting property taxes that are routinely renewed each year for Project Connect. Aleshire emphasized that the original vision of the project included an extensive network of public transit options, but that vision has evolved into something much smaller. “They’re pursuing what I call a ‘miniature’ Project Connect that’s not city-wide,” he said.

Costs and Expectations

Initially estimated at $7 billion, the cost of the Project Connect has ballooned to over $11 billion, while the scope has significantly reduced. Aleshire noted that the project was initially set to include 30 miles of rail, connecting the airport, downtown, and other key areas of the city. Instead, he argues, the current plans only fulfill part of what voters had anticipated.

Furthermore, the lawsuit disputes the tax rate finalized by the Austin City Council earlier this month, asserting it is incorrectly calculated and must be revoked. Aleshire highlighted that Austin has already collected over $630 million in tax levies for Project Connect, but claims that approximately $476 million of that amount remains unspent and uncommitted.

Voicing Concerns

Lead plaintiff Cathy Cocco expressed her disappointment and disbelief over how the project has transformed since it was first presented. Cocco, who has been a lifelong advocate for light rail, believes that the original Project Connect plan would have greatly benefited Austin. However, she now describes the current effort as a “bait and switch scheme.”

For Cocco, the focus has shifted dramatically from an expansive light rail system to a downscaled version that does not adequately address the city’s needs for modern and efficient transportation. “The light rail and Project Connect solution is an unaffordable, outdated, yesterday idea not suited for the 21st Century city that needs to be efficient, agile, affordable, and more equitable for all Austin residents,” she explained.

Future Outlook

The plaintiffs in this lawsuit are calling for the city council to halt the tax collection, rethink the project, and potentially return to voters for a bond election in order to reflect a more realistic plan.

In response to the lawsuit, the Austin Transit Partnership, which oversees Project Connect, has labeled the lawsuit as “baseless.” They argue that the funds being saved now are intended for future construction activities as the project progresses.

Local leaders are expected to provide additional updates regarding the status of Project Connect at their annual meeting scheduled for Wednesday morning, as stakeholders await clarity on this contentious situation.