Legal Ruling Keeps Austin Transit Project Moving Ahead, For Now
The $7.1-billion Project Connect includes an estimated $1-billion light-rail component.
Rendering courtesy Austin Transit Partnership
A multibillion dollar mass transit project in Austin, Texas, is back on track after a state court dismissed two funding challenges brought by the state attorney general in early summer.
A ruling by the 15th Appeals Court could settle how a significant portion of the $7.1-billion Project Connect is funded by a voter-approved tax increase. Both the state government and individuals have filed numerous lawsuits over the project, which includes light rail.
The decision could end the legal challenges of State Attorney General Ken Paxton, whose office has filed a number of lawsuits against the project on behalf of the state and business owners, arguing that Austin Transit Partners—a governing corporation responsible for developing, funding and constructing Project Connect—doesn't have the authority to collect tax revenue.
The court ruling allows a current lawsuit to move forward and determine whether Austin Transit Partners has the authority to move forward. It is unknown if Paxton will appeal to the Texas Supreme Court.
In June, the case was slated to be heard by a lower court, but minutes before the trial, Paxton’s office filed an interlocutory appeal— enabling it to move forward while other parts of the suit are still proceeding. Paxton’s office claims the judge incorrectly denied his challenge over holding the trial. In legal documents, Paxton argued the 53rd District Court had “implicitly denied” his office plea of jurisdiction.
Paxton’s office did not respond to an email seeking comment on an appeal, while officials with Project Connect said the interlocutory appeal was “meritless” and "baseless.”
Austin Mayor Kirk Watson said in a statement following the dismissal: “It will speak volumes about the strength of Ken Paxton’s argument if he continues to stall a decision by appealing to the Texas Supreme Court. Let’s go to court.”
Voters approved Project Connect by 58% in 2020, but since its original conception, the plan has been scaled down as cost estimates have skyrocketed. Last year, the city scaled back construction related to light rail and bus infrastructure.
Austin has seen steady population increases in recent years, and proponents contend Project Connect will help address strain on the city's transportation infrastructure. So far, no completion date has been set.
Opponents argue that the price tag is too high and that taxation is not the proper way to fund the project. About half the funds will come from federal dollars, while the rest will come from the voter-approved tax hike.
