BG Reads | News You Need to Know (June 11, 2021)
[AUSTIN METRO NEWS]
Save Austin Now says Austin mayor, city council should 'cancel their vacation' (KVUE)
Save Austin Now is calling on the mayor and the Austin City Council to "provide a real solution for the homeless community" before taking a break.
Austin's mayor and city council are set to observe a six-week planned recess starting June 11. But, Save Austin Now co-founders Matt Mackowiak and Cleo Petricek say this "vacation" should be canceled or delayed until Proposition B is fully enforced.
Prop B was passed on May 1 and reinstated the public camping ban in Austin.
Mackowiak and Petricek said that the council's break is a "delay tactic" to avoid enforcing the proposition, identifying and creating safe and regulated encampments where the homeless can go while housing is identified and constructed.
"We demand that the Mayor and Council cancel their vacation, get back to work, fully enforce the camping ban, identify workable and safe places for our homeless community to go and unify behind successful models like Haven for Hope, Community First! Village and Camp Esperanza, rather than tripling down over overpaying for motels that still aren’t housing our homeless neighbors,” said Mackowiak and Petricek.
The council is meeting Thursday night prior to the six-week recess.
For more information on how the City of Austin has said it will enforce the ban, click here… (LINK TO STORY)
Austin City Council commits to spending $95M in federal funds on homelessness (Austin American-Statesman)
After months of debating how best to spend a transformational amount of federal stimulus money, the Austin City Council has directed the bulk of it — $95 million — to addressing homelessness.
All told, Austin received $188.4 million in the federal money, which was about $7 million less than initial estimates. That $188.4 million was in addition to $11 million exclusively for homelessness and $35 million exclusively for emergency rental assistance.
Last month, the council committed $45 million of the $188.4 million to spending related directly to the coronavirus pandemic, leaving another $143 million to be allocated Thursday.
By a unanimous 11-0 vote, they agreed to a framework proposed ahead of the meeting by Council Member Alison Alter — with guidance from Mayor Steve Adler and Council Member Kathie Tovo.
Alter called for $95 million to go toward homelessness, most of it for housing. Combined with the $11 million in funds previously earmarked for homelessness, the city will spend about $106 million in federal money on issues related to homelessness.
Under the approved framework, another $12 million will go to the city's creative sector, which has been hit hard by the coronavirus pandemic. Of that, $6 million was directed for arts and $4 million for music, with $2 million designated for nonprofits in the music and arts spaces.
Other spending included $11 million for child care, $21 million for workforce development and $3 million each for food access and resilience hubs that provide shelter during weather emergencies.
The spending would be spread over multiple fiscal years.
Thursday's session was the council's final full meeting before going on break until late July, and although the vote to commit the funding could have waited until they got back, there was significant appetite among the council members to tackle it now.
Among those wanting to get it done sooner was Adler, who for months has suggested spending a big chunk of the federal funds on homelessness.
A summit that Adler helped to organize this year generated a goal of adding 3,000 housing units in the next three years. The estimated cost would be a combined $515 million in operating expenses and capital costs.
Prior to Thursday's vote, the city's staff said that $222 million had been invested through committed and anticipated funds. That left a funding gap, prior to the allocation of the federal money, of $293 million.
Calling on help from philanthropists and the Travis County government — which received $247 million in federal funds — Adler suggested Austin had a responsibility to take the lead by making the first move, and that it should be done now.
An amendment from Tovo, that the council approved, states most of the homelessness money will remain in a reserve fund contingent on the city securing $200 million from external partners.
To this point, Travis County commissioners have said they would be willing to help fund services related to homelessness — like drug and mental health treatment — but not to spend directly on housing… (LINK TO STORY)
American Airlines set to add 14 new nonstop flights from Austin airport this fall (KXAN)
Travelers to and from Austin will soon have even more choices about where they can catch a flight on American Airlines.
The Texas-based airline announced Thursday it’s adding 10 new domestic and four new international destinations that will begin departing from Austin-Bergstrom International Airport (AUS) this fall.
The new, direct domestic flights include:
Three-times daily service to El Paso.
Twice-daily service to Cincinnati; Indianapolis; Kansas City, Mo.; and St. Louis.
Daily service to Jacksonville, Fla.; Oklahoma City; Reno, Nev.; San Juan, Puerto Rico; and Tulsa, Okla.
On the international side, American will provide nonstop service from AUS to Cancun, Mexico; Liberia, Costa Rica; Puerto Vallarta, Mexico; and Punta Cana, Dominican Republic. After providing nonstop, seasonal service this summer, American also stated it will add flights year-round to Los Cabos, Mexico and Nassau, Bahamas from Austin.
Brian Znotins, American’s vice president of network planning, said in a news release Thursday this expansion is driven by demand.
“Earlier this year, we added more flights from Austin, and customers have spoken: they want more,” Znotins said. “We’re eager to offer our customers more opportunities to reconnect with family, friends and colleagues. Together with our partners, we’re making it easier than ever to connect Austin with the world.”
American stated customers can begin buying tickets for these 14 new flights starting on June 14… (LINK TO STORY)
Austin FC is hottest ticket in town but 'best is yet to come,' club president says (Austin Business Journal)
After years of work, hundreds of millions of dollars in construction, hundreds of hires, dozens of player and coach additions and countless hours of work, it's just about here: kickoff for the first ever Austin FC home match.
Ticket holders are counting down the days until the Major League Soccer club takes on the San Jose Earthquakes June 19 at Q2 Stadium. Sponsors that have put significant sums behind the club are eager for its glitzy debut under majority owner Anthony Precourt.
At the center of it all is Andy Loughnane, Austin FC president. Loughnane came over in January 2019 from another MLS team, the Columbus Crew, where he was president of business operations under Precourt. Loughnane has been involved in sports business for more than a decade, getting his start as an account executive with the Detroit Red Wings of the National Hockey League in 1996. After a stint in the corporate world, he returned to sports in 2012 as vice president of corporate partnerships for the Detroit Pistons of the National Basketball Association.
Now he's steering the 27th MLS team toward its first match at Q2 Stadium, which will be at its full 100% capacity of roughly 20,500 seats. In just a couple of years, Austin FC has forged relationships with some of the biggest names in Central Texas business, from St. David's HealthCare to Yeti Coolers. Loughnane said the club has more than 100 employees — a purposefully diverse group, with about 50% identifying as non-white — and will need "several hundred" part-time workers during events, from security to food service to housekeeping.
All of that makes Loughnane one of the most compelling business leaders in town these days. Austin Business Journal interviewed him in late May about the home opener and other topics of interest to the business community. The conversation has been edited lightly for length and clarity… (LINK TO STORY)
[TEXAS NEWS]
Kamala Harris to host White House meeting with Texas Democrats who blocked voting bill (Texas Tribune)
Vice President Kamala Harris is hosting a meeting next week at the White House with Democratic state lawmakers who killed Texas Republicans' priority elections bill in the regular session.
The meeting will take place Wednesday, according to a statement from Harris spokesperson Symone Sanders. The White House did not immediately share which lawmakers would attend, but the House Democratic Caucus tweeted a list of 10 legislators who it said would be there.
Democrats in the Texas House staged a walkout late last month that doomed the legislation, Senate Bill 7, that would have brought sweeping changes to the voting process in Texas. Gov. Greg Abbott has vowed to bring it back in a yet-to-be-called special session… (LINK TO STORY)
Fort Worth Mayor Betsy Price announces run for Tarrant County judge (Texas Tribune)
Outgoing Fort Worth Mayor Betsy Price is running for Tarrant County judge in 2022, attempting a swift return to power in one of the state's most politically important areas.
"Not only do I have the fire and passion to continue serving the good people of our county, but my decades of business and public servant experience — both as Tarrant County Tax Assessor and Mayor of Fort Worth — make me an ideal and qualified candidate for this position critical to both our present and future," Price said in a statement Thursday morning. She added that she would "make a more formal and official announcement in the coming months."
The news of Price's decision comes two days after the current county judge, Republican Glen Whitley, announced he would not run for reelection. He has, since 2007, been at the helm of the county, the third-most-populous in the state and a historically Republican place where Democrats have been making inroads recently… (LINK TO STORY)
Republican Lt. Gov. Dan Patrick says he will seek a third term in 2022 (Dallas Morning News)
Lt. Gov. Dan Patrick made it official Thursday: the Republican is seeking a third term leading the state Senate. In an announcement video, Patrick touted his conservative bona fides and promised to “crush” the Democrats in 2022. “The Democrats are bragging again they are going to turn Texas blue, well I am not about to let that happen,” said Patrick, 71. Former President Donald Trump has already endorsed Patrick, a stamp of approval that carries weight with the state’s most conservative voters who typically vote in GOP primaries. No high-profile Republicans have jumped into the race to challenge Patrick, but at least one aired grievances with his leadership this week.
“I do not support Dan Patrick for reelection — I think he needs to go, I think we need somebody else in there, somebody who’s actually committed to being a productive member,” Rep. Cody Vasut, R-Angleton, said during a recent business luncheon, according to The Brazosport Facts. Ever since an eleventh-hour walkout by House Democrats killed the GOP’s divisive elections bill, Republican leaders have sparred about who’s to blame. While Patrick pointed the finger at House Speaker Dade Phelan, who he accused of slow-walking legislation, House members said the blame rests with the Senate for making last-minute changes that triggered delays. Gov. Greg Abbott has promised to call a special session to reconsider the bill, though he has not yet said when. Patrick oversaw a chamber this session that passed most of his 31 priorities, many of which focused on divisive social issues popular with the conservative base, like limiting abortion and expanding gun rights, but also included addressing the electric grid. Democrats were largely sidelined, after a rule change Patrick championed that effectively limited their say in which bills reached the floor… (LINK TO STORY)
Gov. Greg Abbott says Texas will build a border wall, but doesn’t yet give details on cost or location (Texas Tribune)
Gov. Greg Abbott announced Thursday that Texas will build a border wall along the state’s boundary with Mexico — but provided no details on where or when.
Abbott declared his plans during a press conference in Del Rio. He said he would discuss the plans next week. The Biden administration issued a proclamation that stopped border wall construction on his first day of office.
Abbott announced the news while discussing a slew of border initiatives, such as a $1 billion allocation for border security in the state budget lawmakers just passed and a plan to establish a Governor’s Task Force on Border and Homeland Security with public safety and state government officials.
“It will help all of us to work on ways to stem the flow of unlawful immigration and to stem the flow of illegal contraband,” Abbott said, while seated next to officials from the National Guard, Texas Department of Public Safety and Texas Division of Emergency Management.
At the conference, Abbott also announced plans to increase arrests along the border — and increase space inside local jails.
"They don't want to come to across the state of Texas anymore because it's not what they were expecting," Abbott said before being met with applause from those at the conference. "It's not the red carpet that the federal administration rolled out to them."
He also announced an interstate compact with Arizona Gov. Doug Ducey to resolve the border "crisis," and called on other states to do the same.
Abbott's announcement comes after Republican former state Sen. Don Huffines said he will challenge the governor in next year's GOP primary — and as part of his campaign also promised to finish border wall construction in Texas.
"We will completely shut down the border until the crisis is solved and eliminate all taxpayer-funded subsidies to illegal aliens," Huffines tweeted earlier this month. "I am not afraid to take on the federal government."
Building a wall along the Texas-Mexico border was a key element of former President Donald Trump's successful 2016 election campaign plan that can be dated to when he was preparing his bid for a Republican nomination in 2014. His promise that Mexico would pay for it remained unfulfilled for the entirety of his administration… (LINK TO STORY)
[NATIONAL NEWS]
America may be ‘back’ at G7, but allies’ doubts about U.S. democracy linger (Reuters)
In 2017 the president of the United States shocked Washington's Western allies during his first European trip, scolding them for failing to pay their "fair share" on defense, physically shoving aside one prime minister, and white-knuckling another leader in a public handshake.
After four tumultuous years for the transatlantic relationship under Donald Trump, his Democratic successor Joe Biden's words of friendship and promise that "America is back" as he meets Western allies week and next are a welcome relief.
But they're not enough, diplomats and foreign policy experts say.
Biden faces lingering doubts about America's reliability as a partner. Leaders from the Group of Seven advanced economies, NATO and the European Union are worried about the pendulum of U.S. politics swinging yet again, and are looking for concrete action, not words after the shock of the Trump years."Is this an interregnum between Trump 1.0 and Trump 2.0? Nobody knows," said David O'Sullivan, a former European Union ambassador to Washington. "I think most people are of the view that we should seize the opportunity with this administration to strengthen the relationship and hope that this can survive beyond the midterms and 2024… (LINK TO STORY)
Cheap dollars attract foreign investors to treasurys (Wall Street Journal)
The cheapest dollars in years are spurring a rise in foreign investment in U.S. government bonds at the same time that pension funds are boosting their holdings—and that demand pickup could weigh on Treasury rates even as the economy strengthens.
The WSJ Dollar Index, which measures the greenback against a basket of currencies, is down 2.9% this quarter so far and hovering close to the lowest level in about five months. The price of hedging dollars through forward rates also was the cheapest in at least six years last week and remains close by, according to analysis from Deutsche Bank.
“If I were to buy a bond market, which is the case for a lot of investors, I would buy the U.S. Treasury,” said Laurent Crosnier, chief investment officer of Amundi’s London branch, Europe’s largest asset manager. The positive yield and low hedging cost “makes the U.S. Treasury attractive relative to others.”
The benchmark 10-year government bond yield slipped below 1.5% earlier this week, closing at 1.458% on Thursday—the lowest level since March 2. Prices rise when yields fall.
Government bonds are popular in times of poorer economic performance for safety and liquidity. The recovery from the pandemic is widely expected to result in fund managers cutting their holdings as they position their portfolios for better times and less uncertainty. Investors are widely expecting an increase in inflation from a combination of pent-up demand, supply constraints and stimulus spending. This is also seen as negative for conventional bonds, whose fixed cash flows lose purchasing power when prices rise… (LINK TO STORY)