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BG Reads 2.2.2024

BG Reads 2.2.2024

🗞️ Bingham Group Reads - February 2, 2024

February 02, 2024

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Bingham Group Reads

Presented by:

February 2, 2024

Today's BG Reads include:

✅ Hutto is Austin's best suburb for first-time homebuyers

✅ I-35 corridor in good shape to weather economic downturn

✅ Powell navigates ‘toxic’ politics of rate cuts as election nears

✅ Whistleblower lawsuit to continue despite AG Ken Paxton’s concession

Read on!

[AUSTIN CITY HALL]

➡️ Check out Bingham Group’s City of Austin org chart red line (as of 1/31/2024).

➡️ MEMO: Interim City Manager Garza, 60-90 Day Goals & Transition.

➡️ VIEW: Action taken by the City Council during its February 1st meeting.

[AUSTIN METRO NEWS]

APD report says higher-ups knew of projectile dangers before 2020 protests (Austin American-Statesman)

Austin police Sgt. Steven Willis sat in an interview room in September with two detectives conducting a broader investigation of the department’s response to the May 2020 Black Lives Matter protests. He described how he was sickened when he witnessed bashed and bloodied demonstrators near the Police Department's headquarters.

The reason: The department's "less lethal" beanbag rounds had not performed as expected, he told them. Records and interviews show the department knew it had a potential problem at least five months before the protests.

“I see people walking by holding injuries, bleeding, and my first thought was, ‘Oh, my god, we never changed the round,’” Willis told special investigations unit detectives, according to a transcript. “So then later I see pictures of the rounds and the wounds that emergency room doctors or surgeons were pulling out of people, and … I just got sick. I got sick to my stomach knowing that I played a part in this.”

In January 2020, Willis and at least one other department midlevel supervisor at the police training academy tried to warn their supervisors that “less lethal” projectiles might be causing greater injuries than expected, according to a confidential report produced within the Austin Police Department last fall and obtained by the American-Statesman. The report said that, based on an investigation that included archived emails and five interviews, “it is reasonable to believe that there were, at least, verbal communications regarding concerns up to the command level.”… (LINK TO FULL STORY)

Austin City Council votes to extend police pay, benefits in lieu of contract (KXAN)

During Thursday’s city council meeting, council members voted in favor of a resolution to establish pay and benefits for the Austin Police Department (APD) in lieu of a police contract.

Last year, while the Austin Police Association (APA) and the City of Austin came to an agreement on contract conditions, council voted not to accept the agreement until a May 2023 vote on a police oversight provision. Following that downvote, council adopted a resolution that guaranteed police pay and offered recruitment incentives.

It expires next month, which is why Mayor Kirk Watson on Thursday brought forth what essentially is a second version of that year-long ordinance. It includes $4 million in taxpayer money to secure police pay and benefits for that time period... (LINK TO FULL STORY)

Hutto is Austin's best suburb for first-time homebuyers, report indicates (Austin Business Journal)

Hutto is the best market for first-time homebuyers in the Austin area, according to a new analysis by Realtor.com.

The analysis identified the best markets nationwide for first-time homebuyers, as well as the top local city or suburb in major metro areas. Realtor.com examined median home listing prices, available inventory, forecasted price growth, commute times and unemployment rates when compiling the data.

The report lists median home prices of about $387,000 for Hutto, which is about 30 miles northeast of downtown Austin in Williamson County. That compares to a metro-wide median price of about $500,000, according to Realtor.com. The Austin Board of Realtors tracks slightly lower numbers on those fronts. ABOR reports that the median price in the Austin area is closer to $450,000, and it pegs median home prices in Hutto at about $380,000… (LINK TO FULL STORY)

Recently annexed areas in Austin could vote to leave city this spring (Community Impact)

Residents in a handful of areas around Austin's outer limits could vote to remove those places from the city this spring, just a few years after they were first annexed.Last year, Texas lawmakers passed House Bill 3053 requiring certain large cities to hold disannexation elections for some areas that were recently added into their city limits.The new law specifically targets only to cities with 500,000 residents or more—including Austin—and applies to populated areas that were annexed by a city between March 3, 2015 and Dec. 1, 2017.In Austin, there are six such places totaling more than 1,100 acres, or just under 2 square miles. Their voters will face elections over either remaining in or withdrawing from Austin on May 4… (LINK TO FULL STORY)

EDD previews changes to Cultural Arts funding programs ahead of consultants’ reviews (Austin Monitor)

The Economic Development Department is moving ahead with a handful of adjustments to its pilot programs for Cultural Arts grants, with more changes likely to result from a comprehensive review from three outside consultants.

At this week’s Arts Commission meeting, staff from the Cultural Arts division gave an update on the funding process for the first groups of grant recipients for the Nexus, Elevate and Thrive programs as well as a separate arts education program, which as of late January had delivered $8.6 million to artists and arts organizations.

The changes are in response to widespread criticisms of the programs, which had gone through a three-year restructuring process, from applicants who found the application and scoring process unclear or unfair.

Late last year, EDD enlisted the consultants Gartner, Snap Management and Measure to, respectively, review the technical side of the application portal, evaluate the user experience of the programs and determine if the programs achieved the city’s goals on equity and other related priorities… (LINK TO FULL STORY)

[BG Podcast Weekly Recap EP. 234]

On this episode Bingham Group CEO A.J. Bingham and Associate Hannah Garcia wrap up the week of January 22nd, 2024 in Austin politics.

Topics include:

✅ Austin Council reaction to Art Acevedo hire (continued)

✅ 2024 Mayoral election updates

✅ And more

LISTEN ON: SoundCloud, YouTube, Apple Podcast, Spotify

Click here for this week’s Austin public meeting meeting times and agendas.

[TEXAS NEWS]

Economist: I-35 corridor in good shape to weather economic downturn (San Antonio Express-News)

Even if projections for a national recession come true, the Texas Interstate 35 corridor can expect its economic growth to continue in the coming year, a Texas economics expert says. Keith Phillips, former senior economist for the Federal Reserve Bank of Dallas, on Wednesday told a crowd of local officials and business leaders in San Marcos that the “phenomenal growth” in the region isn’t likely to stop. Speaking at the Texas Innovation Corridor Economic Outlook, hosted by the Greater San Marcos Partnership, Phillips said he anticipates a “shallow and short” recession in the United States in the first half of 2024, but expects Texas, and specifically Central Texas, to avoid that downturn.

That’s thanks to high oil prices, strong migration from other states and a “flexible labor market” with fewer rules, he said, which will allow economic growth to continue. Last year, Texas saw 3.1% job growth, compared with 1.7% nationally, Phillips said — so even with a slowdown, he expects that number will remain above the national average. One challenge he foresees is housing affordability as the region continues to grow, as both home prices and rising mortgage interest rates have made it harder to buy homes. But Texas remains affordable compared with many other states, he said. Panelists from regional real estate companies echoed Phillips’ optimism, citing the access to Austin and San Antonio, regional collaboration, and supportive local governments as factors in ongoing growth for the region. “I think in this area, you have such an interesting combination of access, developability, political climate, an educated population that all make this a very compelling place to do business and to invest,” said Brooks Willig, managing partner for La Tierra Realty… (LINK TO FULL STORY)

Whistleblower lawsuit to continue despite AG Ken Paxton’s concession (Dallas Morning News)

A whistleblower lawsuit against the Texas attorney general’s office will continue, a judge ruled Wednesday, raising the possibility that Attorney General Ken Paxton could be forced to testify in the future. Paxton’s agency, in a bid to end the lawsuit, asked a state district judge in Travis County to impose judgment in favor of the whistleblowers, saying it would not fight their lawsuit alleging that four top officials were improperly fired in 2020 after reporting Paxton to law enforcement. During a hearing Wednesday, the judge rejected the request, siding with lawyers for the whistleblowers who argued that Paxton and his agency had not admitted guilt in the case and therefore could not be subject to a judgment that would include monetary damages and lawyer fees.

The whistleblowers’ lawyers argue that the attorney general’s office is dropping its opposition to the lawsuit so Paxton can avoid being forced to answer questions under oath about the firings and accusations that the attorney general used his office to help an Austin real estate investor now under federal indictment. “They want their cake and they want to eat it, too, and they want to keep their people off the witness stand,” whistleblower attorney TJ Turner said in court. Paxton and high-ranking subordinates face the possibility of being called to testify as long as the whistleblower lawsuit remains active.

Unlike a criminal trial or his impeachment trial, Paxton can be forced to answer questions under oath in a civil case. While victorious Wednesday, the fired officials had a setback a day earlier when the Texas Supreme Court blocked a deposition of Paxton that was to take place Thursday. The court gave the whistleblowers until Feb. 29 to file a response. It would have been the first time Paxton was forced to answer questions about why the four whistleblowers were fired and about his dealings with real estate investor Nate Paul, who was later indicted on bank and wire fraud charges. The legal sparring Wednesday in the 419th District Court was the latest in what has become a steady drumbeat of jabs and counterpunches in the 3-year-old legal challenge from former top executives fired after they accused Paxton of bribery and corruption… (LINK TO FULL STORY)

Hidalgo clashes with Commissioners Court colleagues on nearly 40% raise for HCTRA director (Houston Chronicle)

Harris County Judge Lina Hidalgo briefly clashed with fellow members of Commissioners Court on Tuesday over a raise of nearly 40% for Harris County Toll Road Authority executive director Roberto Trevino. Hidalgo raised the issue in a sharp exchange at the tail end of a Commissioners Court meeting, arguing the major pay increase "feels insanely icky."

The court reclassified Trevino's position, allowing his pay to be raised by 38% from $350,531 to $485,000, according to county officials. The confrontation arose shortly after members of the court returned from discussing the personnel matter privately during a closed-door executive session held near the end of the public meeting. When four out of five members returned to the chamber, Harris County Precinct 1 Commissioner Rodney Ellis reconvened the public portion of the meeting so they could hold a vote on the pay increase.

Hidalgo, who presides over the court, then returned to the chamber and asked why they had resumed without her. She took the unusual step of publicly sharing information from the court's private discussion of Trevino's pay increase.

"It's because supposedly he's going to be offered a job at the city?" Hidalgo said. "He doesn't even have a paper offer yet. They said the offer is just verbal." Houston Mayor John Whitmire's office declined to comment on whether Trevino is being considered for a job. But Hidalgo questioned colleagues Tuesday about why Trevino would be receiving such a substantial increase. "I don't know what's behind it, but nobody's so good that they deserve a 40% salary increase overnight," she said…(LINK TO FULL STORY)

[US/WORLD NEWS]

At International African American Museum opening, a reclaiming of sacred ground for enslaved kin (Associated Press)

When the International African American Museum opens to the public Tuesday in South Carolina, it becomes a new site of homecoming and pilgrimage for descendants of enslaved Africans whose arrival in the Western Hemisphere begins on the docks of the lowcountry coast.

Overlooking the old wharf in Charleston at which nearly half of the enslaved population first entered North America, the 150,000-square-foot (14,000-square-meter) museum houses exhibits and artifacts exploring how African Americans’ labor, perseverance, resistance and cultures shaped the Carolinas, the nation and the world.

It also includes a genealogy research center to help families trace their ancestors’ journey from point of arrival on the land… (LINK TO FULL STORY)

Powell navigates ‘toxic’ politics of rate cuts as election nears (Wall Street Journal)

For Federal Reserve Chair Jerome Powell, deciding when to cut interest rates is hard enough: Too soon, and inflation could rise again. Too late, and unemployment might shoot higher.

The challenge is doubly difficult this year because he is doing it in the glare of election-year politics.

Allies of former President Donald Trump, the Republican front-runner, have already argued that the central bank is seeking to help President Biden by signaling that cuts are coming.

Meanwhile, some Democrats inside and outside the West Wing are nervous that the current president’s re-election prospects will be jeopardized by a central bank that keeps rates too high for too long after both the Fed and the administration misjudged inflation… (LINK TO FULL STORY)