🟪 Audit: Austin 'may not be able to' justify hundreds of millions in recent consultant spending (Community Impact)

🟪 Austin union criticizes city’s IT consolidation plan over potential risks to public safety (KVUE)

🟪 Travis County DA: No charges for Austin officers who stopped 6th Street mass shooting (KVUE)

🟪 Austin approves $1.4B for airport expansion bonds (Austin Business Journal)

🟪 TxDOT tells Austin to sign boardwalk deal or lose $25 million (KUT)

🟪 Pflugerville declares water disaster after pipeline failure, enacts restrictions (Community Impact)

🟪 Nirenberg defeats incumbent Sakai in Democratic primary for Bexar County judge (Texas Public Radio)

🟪 Classified report finds Kristi Noem created security vulnerabilities at airports (Wall Street Journal)

🟪 Wall Street is betting on tariff refunds after Supreme Court ruling (NPR)

READ ON!

Meetings:

✅ Audit: Austin 'may not be able to' justify hundreds of millions in recent consultant spending (Community Impact)

A new city audit revealed issues with Austin's frequent use of third-party contractors, including unclear justifications and reporting on work that recently cost nearly $300 million in less than three years.

“The city may not be able to show why consultant services were needed or how they were used," Audit Manager Keith Salas said.

Contracting with consultants is common in Austin, with Salas noting that "virtually all" city departments are spending on third-party support. The practice grew increasingly expensive in the less than three-year period covered by the March audit, which looked at data from fiscal year 2022-23 through late FY 2024-25.

Annual citywide consulting costs rose by more than $20 million, or about 25%, in that span. Annual consulting expenses surpassed $100 million for the first time with two months still remaining in FY 2024-25… 🟪 (READ MORE)

✅ Austin union criticizes city’s IT consolidation plan over potential risks to public safety (KVUE)

Some city of Austin workers are concerned proposed budget cuts will hurt public safety. 

David Cruz is one of the executive board members for the American Federation of State, City and Municipal Employees (AFSCME) Local 1624 union. That chapter represents some employees with the City of Austin, including IT workers.

"When this IT consolidation was pitched initially folks were open to seeing room for growth, room for efficiency, room to cut down, expensive contracts," Cruz said. "But, what they've seen is not a rigorous process." 

The city is working to centralize Austin Technology Services (ATS) and form One ATS (OATS). It is part of cost cutting efforts made after Prop Q failed to pass in November. The ballot measure would have increased property tax revenue. 

"I'm really proud to say we didn't wait for city council or community members to say we need government to operate more efficiently. This is a process that's been underway for more than a year now," Ed Van Eenoo, the city chief financial officer said in a Audit and Finance Committee meeting Wednesday. 

At that meeting, ATS chief information officer Kerrica Laake presented the committee the findings and recommendations from consultants hired by the city to look into its IT department. 

In summary, the consultants say Austin has too many IT employees, too many software applications and they are all across too many departments… 🟪 (READ MORE)

✅ Travis County DA: No charges for Austin officers who stopped 6th Street mass shooting (KVUE)

The Travis County District Attorney's Office announced Wednesday it will not take action against the three Austin police officers that were involved in Sunday's mass shooting on West Sixth Street after formally ending its review of the incident. 

Travis County District Attorney José Garza shared a letter he sent to Austin Police Chief Lisa Davis, stating the officers involved "effectively stopped the active mass shooting event that occurred on Sixth Street in Downtown Austin."

Garza continued by saying "the actions of the APD officers resulted in the death of the shooter, and because the area in which the shooting took place was still heavily populated, these actions undoubtedly saved lives and prevented additional injuries." 

Garza said after the review, which included video evidence, walking the scene and working with APD's Special Investigations Unit, the situation was "indisputable that at the time the officers were responding to an active shooting in a mass casualty situation, and that the subject of the shooting was in the act of using unlawful deadly force." 

This comes a day after Garza released a statement in response to Texas Gov. Greg Abbott's online comments claiming Garza was planning to present the case to a grand jury.  

Abbott posted on Monday on his X account that “these police officers are heroes who saved lives,” adding that “whatever the DA does, I will have the final say in the fate of these police officers.” His post came in response to claims that Garza planned to present the case to a grand jury… 🟪 (READ MORE)

✅ Austin approves $1.4B for airport expansion bonds (Austin Business Journal)

Austin’s effort to expand its airport is moving forward as city leaders recently approved issuing $1.4 billion worth of bonds. 

The Austin City Council voted on Feb. 26 to approve the issuance of $1.4 billion worth of bonds to help support the expansion of the Austin-Bergstrom International Airport. These bonds will just cover a portion of the total costs of expansion as the project is set to cost roughly $5 billion and add 32 new gates and refresh the airport’s internal operations and footprint.

The bonds, which came as two votes for the council with one at $350 million and another at $1.05 billion, will help finance utility and infrastructure upgrades at ABIA as well as design work for a new arrivals and departures hall that is set to open in the early 2030s. In addition to bonds, ABIA is financing its multi-billion expansion efforts by using cash reserves, airport revenues and federal grants.

ABIA is undergoing this massive expansion effort as travel demands for Central Texas have greatly expanded in recent years; in 2019 ABIA had a total of 17.3 million passengers and in 2025 the airport had 21.7 million passengers, which is a 25% increase… 🟪 (READ MORE)

✅ TxDOT tells Austin to sign boardwalk deal or lose $25 million (KUT)

The Texas Department of Transportation has told the city of Austin it must accept a proposed funding agreement for a $25 million boardwalk along Lady Bird Lake, or risk losing the project altogether.

The boardwalk was originally intended to replace a narrow stretch of the Ann and Roy Butler Hike and Bike Trail, in front of the Hyatt Regency between South First Street and South Congress Avenue. When it rains, puddles narrow the path even further.

The city of Austin now says the existing trail will be widened and straightened in front of the Hyatt and the boardwalk will be "additive to the stretch of trail."

In a letter to Mayor Kirk Watson dated Feb. 5, TxDOT said it will remove the boardwalk from its environmental approval for the I-35 expansion if City Council does not accept the agency's proposed advanced funding agreement.

"The city can sign the AFA for the boardwalk or decline it," TxDOT engineer Tucker Ferguson wrote.

The boardwalk proposal was unveiled in 2023 as part of a package of measures to soften the blow of the I-35 Capital Express Central project. The estimated $4.5 billion expansion, already under construction, includes adding two high-occupancy vehicle lanes in each direction from Ben White Boulevard to U.S. 290 East… 🟪 (READ MORE)

✅ Pflugerville declares water disaster after pipeline failure, enacts restrictions (Community Impact)

Pflugerville officials declared a local disaster March 4 after a pipeline failure reduced the amount of raw water flowing into Lake Pflugerville, prompting strict emergency water restrictions across the city.

Mayor Doug Weiss signed the disaster declaration, citing an imminent threat to the city’s public water system as lake levels continue to decline, according to a news release.

Along with the declaration, the city activated Stage 3 emergency water restrictions, limiting water use to indoor purposes only for all city water customers.

City officials said the emergency follows the failure of a pipeline that feeds raw water into Lake Pflugerville, the city’s primary source of drinking water… 🟪 (READ MORE)

✅ Austin Convention Center leadership changes as construction continues (KXAN)

As construction continues on the Austin Convention Center, leadership was changed as Director Trisha Tatro announced her retirement on Monday.

As a result of her retirement, Austin City Manager T.C. Boradnax appointed Katy Zamesnik to the position. Previously, she was the deputy director for the Austin Convention Center, and has held several other roles since joining the department in 2020.

“This is a pivotal moment for our department, and I am confident we will continue delivering exceptional service and creating meaningful experiences that satisfy our visitors, support the convention and hospitality industry, and serve the Austin community,” Zamesnik said.

As a result of Zamesnik promotion, Rolando Fernandez, Jr., has taken over the position of deputy director of the Austin Convention Center. He is tasked with overseeing contracts and Capital Improvement Program projects within the department, according to a city press release… 🟪 (READ MORE)

✅ Austin Under 40 Awards announces its 2026 finalists (Austin Monthly)

Today, the Austin Under 40 (AU40) Awards announced the finalists for its 2026 awards! Hosted by the Young Men’s Business League (YMBL), the AU40 Awards recognize 90 finalists across 18 professional categories. Winners will be announced at the 27th annual awards gala at the JW Marriott on May 9, 2026. The annual fundraiser benefits Austin Sunshine Camps, which provides overnight camp experiences to underserved kids in Austin. Below, see the finalists for the 2026 awards… 🟪 (READ MORE)

✅ With Trump endorsement looming, Cornyn and Paxton prepare for “knife fight” in Senate runoff(Texas Tribune)

The last time John Cornyn was in a primary runoff, it was 28 years ago and he easily won.

Things have changed a bit since then.

Texas is a far redder state, President Donald Trump is the undisputed kingmaker and primary voters are more conservative and willing to look past candidates’ scandals and personal baggage. All those changes are coming to a head as Cornyn enters a runoff against Attorney General Ken Paxton in his bid for a fifth term in the Senate.

The two Republican heavyweights finished just over one point apart in Tuesday’s primary, but neither reached the majority threshold to win outright. In the overtime round, Paxton is betting Republicans will behave like they usually do in a runoff, turning out in smaller numbers and favoring the candidates they see as more conservative. Cornyn, however, is staking his political fate on a riskier bet — that the intense spotlight on the race will juice turnout, to his benefit, and that the contest will be a referendum on the challenger rather than the usual focus placed on the incumbent… 🟪 (READ MORE)

✅ Nirenberg defeats incumbent Sakai in Democratic primary for Bexar County judge (Texas Public Radio)

Former San Antonio Mayor Ron Nirenberg will be on the November ballot as the Democratic nominee for Bexar County judge after defeating incumbent Peter Sakai in Tuesday’s primary.

As of 8:27 p.m., with early voting totals reported, Nirenberg had 62% of the vote compared with Sakai’s 38%, according to results from the Bexar County Elections Department.

The result unseats a first-term incumbent in one of the most powerful elected positions in local government.

The Bexar County judge is the county’s top elected official and presides over the Commissioners Court, which oversees county government.

Nirenberg, who has never lost an election, will face Republican nominee Patrick Von Dohlen this fall. Von Dohlen ran unopposed for the nomination.

“We didn't just win a primary,” Nirenberg told the crowd at his victory party. “We committed to fixing a broken justice system. We resolved that everyone should have access to quality health care regardless of their zip code, and we agree that no one should have to choose between a roof over their head and food on the table.”… 🟪 (READ MORE)

✅ Rep. Tony Gonzales, forced into runoff, admits to affair with aide who died by suicide (Texas Tribune)

U.S. Rep. Tony Gonzales, R-San Antonio, admitted Wednesday to having an affair with a staffer who later died by suicide, after initially denying the allegation.

Speaking on conservative talk show host Joe Pags’ show the day after he was forced into a runoff in his primary, Gonzales called the affair a “mistake” and a “lapse in judgment.”

“I take full responsibility for those actions,” Gonzales said. “Since then, I have reconciled with my wife, Angel. I’ve asked God to forgive me, which he has. And my faith is as strong as ever.”

Gonzales is now subject to an investigation from the House Ethics Committee, announced Wednesday, to look into whether he “engaged in sexual misconduct towards an individual employed in his congressional office” and “discriminated unfairly by dispensing special favors or privileges.”… 🟪 (READ MORE)

✅ Classified report finds Kristi Noem created security vulnerabilities at airports (Wall Street Journal)

Department of Homeland Security Secretary Kristi Noem for months failed to appropriately respond to the findings of an internal watchdog that one of her biggest changes to airport security—allowing passengers to pass through screening checkpoints with their shoes on—is creating “significant” security risks, according to a letter from the inspector general reviewed by The Wall Street Journal and officials familiar with the matter.

In July, she announced the change with great fanfare, granting the shoes-on policy to passengers even if they weren’t enrolled in the Transportation Security Administration’s precheck program. The announcement to eliminate what millions of travelers view as a nuisance was one of Noem’s most politically popular moves to date. But a classified November report by the Department of Homeland Security’s inspector general, the agency’s top watchdog, found that some of the TSA full-body scanners that most airline passengers pass through can’t scan shoes, according to people familiar with the report’s contents.

The report determined Noem’s policy move had inadvertently created a new security vulnerability in the system. Some White House officials have been made aware of the report. When the secretary’s office was briefed on the report, officials there gave it a higher level of classification and blocked it from being publicly released, people familiar with the matter said. A spokeswoman for the department disputed the inspector general’s claims and said Noem had appropriately responded to the findings. Many homeland-security officials said Noem’s handling of the inspector general report fits a pattern in which she has ignored or played down national-security concerns. In another instance, her office published photos of a secret government facility, publicizing a site meant to house the president in emergencies, officials said.

Officials across the department have complained that Noem places priority on her public image and political standing in a way that jeopardizes her sprawling department’s core mission. In recent weeks, DHS has come under scrutiny, following two shootings of U.S. citizens by immigration agents. The Journal detailed earlier this month how Noem has attempted to burnish her personal stardom, staging a headline-grabbing immigration crackdown while retaliating against rivals and dissenters… 🟪 (READ MORE)

✅ Wall Street is betting on tariff refunds after Supreme Court ruling (NPR)

When the Supreme Court struck down a huge portion of President Trump's tariffs last month, it set off a wave of uncertainty about how, when and if the approximately $180 billion importers have paid might be refunded.

And Wall Street seized the opportunity to make some money.

In fact, it had already cooked up a trade for this.

Its offer to importers: Instead of waiting indefinitely to recoup the money they spent on tariffs, they could sell to hedge funds their claims to tariff refunds, or a portion of them, at a discount. In return, hedge funds would get the full claim amount when — and if — refunds come through. And they'd also take on the burden of pursuing those claims.

Wes Harrell, who heads a trading group at Seaport Global, has been connecting importers and hedge funds on these trades since last November. Since the ruling, he said, everyone wants in… 🟪 (READ MORE)