BG Reads | News You Need to Know (August 19, 2021)
[AUSTIN METRO NEWS]
Questions linger on both sides of $1.1M guaranteed income pilot program (Austin Monitor)
Initial details of the city’s forthcoming pilot program to provide guaranteed income assistance to vulnerable families are expected to emerge later this fall, with just over 100 households expected to receive around $1,000 per month.
A spokesperson for the city’s Equity Office said information about the program, which City Council budgeted at $1.1 million, is due by early to mid-October. The program was approved as part of the adoption of the city’s next budget. A planned $250,000 study of guaranteed income programs in other cities was replaced in a move city staffers felt was justified, based on data from existing programs in more than a dozen cities across the country.
Brion Oaks, head of the Equity Office, will lead the design and execution of the pilot program that will in some ways build on an ongoing income assistance program that was led by local nonprofit groups, including UpTogether.
Oaks said staff will look at how to add families in different ZIP codes than those focused on by the current program and examine how other city services can be combined with the direct payments to increase the positive impact on recipients.
“This influx of monthly income into a family allows that family to free up other resources so they can make investments in other areas to increase their economic mobility,” he said, referring to successful programs across the country.
“In Stockton (California) they found that the stipend could free you up from having to work multiple part-time jobs or gig work you would have to do to get to (the equivalent of) a full-time, high-paying position, or to free up the time to go to a job certification program, take coursework in school and elevate yourself … so the family can be better off overall.”
Council members voted to approve the budget amendment to create the program. The only vote against came from Council Member Leslie Pool, who questioned Oaks on the staff decision to forgo the approved study and proceed with the pilot program instead.
She said proposals for a federal income program would create a more uniform system, and questioned whether the city would be able to afford ongoing assistance to a large number of vulnerable residents… (LINK TO FULL STORY)
Final 3 Austin police chief candidates lay out their experience, thoughts on law enforcement in resident forum (Community Impact)
Less than one week after City Manager Spencer Cronk shared his shortlist of candidates for the city's next police chief, Austin residents had a chance to hear from the finalists themselves during an Aug. 18 forum at the Palmer Events Center.
The event featured a city-led question and answer session and opportunities for residents in attendance to connect with the three remaining candidates individually. The finalists bring more than 80 years of public safety experience combined, and include Austin's current interim chief Joseph Chacon; Avery L. Moore, assistant chief at the Dallas Police Department; and Emada E. Tingirides, deputy chief at the Los Angeles Police Department.
The law enforcement officials have made it through several rounds of a selection process launched this spring by the city and consultant Ralph Andersen & Associates, and which garnered 46 applications from around the country. The list was cut to seven in late July and again narrowed Aug. 13 following additional interviews leaving Chacon, Moore and Tingirides in the running.
“Whoever is selected will begin their duties during a period of intense change for the Austin Police Department. Ultimately, we believe that the new chief of police can help APD and the city adapt and emerge from Reimagining Public Safety in a manner that meets our strategic safety outcome of being safe in our home, at work and in our community," Assistant City Manager Rey Arellano said prior to the candidate sessions.
The Aug. 18 event was one of two the city plans to hold, and will be followed by an Aug. 19 meeting also at the Palmer center. Interested residents may attend in person or view the meeting live via city broadcast on ATXN. The city also said more information on the selection process and opportunities for further feedback will be available on its SpeakUp Austin webpage… (LINK TO FULL STORY)
Despite Delta variant uncertainty, Austin office market could soon return to 2019 investment levels (Austin Business Journal)
Through the first half of 2021, Austin’s office real estate market saw nearly $1 billion of sales volume, according to a report by CommercialEdge.
That meant the area was on pace to potentially equal or surpass the nearly $2 billion in transaction volume from 2019, before the pandemic took hold.
The short-term outlook for office space might be cloudy because of the spread of the Delta variant of Covid-19, but CommercialEdge pointed out there’s plenty more office space in the pipeline.
At least 7.5 million square feet of office space is set to come online within the next two years, according to the report. Work has started on about 1.2 million square feet this year.
“Although many of these projects have been in the planning and construction stages since before the pandemic, their completions will actually usher in a new era of buildings that will be labeled as post-pandemic office buildings,” stated Patrick McGregor, author of the CommercialEdge report. “Likewise, many of these properties have made adjustments and other modifications throughout the construction process to accommodate more flexible work environments and work habits that the ‘new normal’ may require.”
A total of 42 office properties changed hands during the first six months of 2021 — about 80% of all the deals completed in 2020, according to McGregor. In 2019, 104 deals closed.
The report found that "high-quality assets are driving this market," with the largest of them announced in June, when Kilroy Realty said it would buy the 708,000-square-foot Indeed Tower from Trammell Crow for $580 million or $818.70 per square foot.
The CommercialEdge report also found office listing rates were up, subleases were trending downward and continued corporate expansions and relocations are likely to spur investments in the market.
Average listing rates were up nearly 5% year-over-year, according to CommercialEdge. The average listing rate was $43.54 per square foot for the entire Austin metro. Leading the way was the East Austin submarket, where the average listing rate was $61 per square foot. Downtown Austin was the second most expensive submarket, clocking in at $59 per square foot.
“Current- and post-pandemic leasing strategies that expand concessions and increase term flexibility are also aiding the uptick in leasing activity as the economy continues to reopen,” McGregor stated.
The tech sector is helping Austin recover from high vacancy rates.
“The tech explosion is really what is making Austin different. ‘Texodus’ is a real thing. Big and small, everyone is grabbing a seat at the Austin table,” stated Peter Kolaczynski, a senior manager with CommercialEdge. “Austin vacancy rates are nudging off their highs as Texas continues to outpace the country in percentage of workers returning to the office.”… (LINK TO FULL STORY)
Eanes Kids First group rallies against mask mandate, district's diversity initiative (Austin American-Statesman)
About 50 people gathered outside the Eanes administration building Tuesday afternoon before school starts on Wednesday to rally against school mask mandates and the district’s diversity equity and inclusion initiative. Eanes, like other districts in Travis County, have been caught in a legal tug of war between local and state officials over masks in schools. The district originally stated it would not require masks but would encourage them, a position that was in line with Gov. Greg Abbott’s order banning mask requirements in schools. Travis County issued a contradictory order on Aug. 11 that requires masks to be worn in schools. After a local judge upheld the county order, Eanes announced Saturday it would reverse course and require masks in line with the county order.
Tuesday’s rally was organized by Eanes Kids First, which started as a Facebook group for parents who wanted to get kids back in schools last fall when schools started remotely before transitioning back to in-person learning. Eanes Kids First has since taken up other issues, including opposition to the district’s DEI initiative.
The group was founded by Jennifer Stevens, who ran an unsuccessful campaign for school board in May. “Whatever's best for your family, you do that,” Stevens said about mask wearing at the rally. “This is America. We’re founded on the basis of freedom. And the idea is you do what's best for you, and you do what's best for your children. So for me and my kids, we will not be in masks, for you and yours, you do you.” District officials said Tuesday that although masks are required by the county, there is little schools can do to enforce that rule. The county order relies on self-regulation, Superintendent Tom Leonard wrote in an email to the community, which means that Eanes and other districts must rely on individual student and staff cooperation… (LINK TO FULL STORY)
[TEXAS NEWS]
Fort Worth OKs tax breaks for electric vehicle factory, proposed for site of former ranch (Fort Worth Star-Telegram)
Fort Worth city officials have approved a $440 million package of tax incentives for electric vehicle manufacturer Rivian Automotive, saying the company’s proposal to build a $5 billion factory in the Walsh development would forever change the landscape of the once-rural western side of the city. In return, Rivian would create 7,500 jobs by 2027, which would make it one of the largest employers in the Dallas-Fort Worth region. The California company is looking at several cities for its proposed manufacturing plant, although Fort Worth is considered a front-runner. The project would be built on 2,000 acres of undeveloped land on the south side of Interstate 20, just east of the Interstate 20/I-30 split near Aledo. It would be part of the master-planned Walsh community, an area city officials say will eventually be home to 50,000 residents — although the car factory would be about a mile south of those homes.
The City Council on Tuesday unanimously approved the tax breaks for Rivian or its affiliate without discussion. The move includes creation of a tax abatement reinvestment zone, which clears the way for Tarrant County, Parker County or other government entities to offer incentives as well. The Walsh development straddles the Tarrant-Parker county line. The project also will be submitted as a potential Texas Enterprise Zone project, making it available for further state funding. The city’s $440 million in tax breaks is the equivalent of 85% of maintenance and operations property taxes over 15 years. The Fort Worth factory would be capable of producing 200,000 vehicles per year, city records show. Workers at the factory would be paid minimum average annual salaries of $56,000.
Rivian is supported by Amazon and Ford Motor Co. Amazon has a contract with Rivian to order 100,000 electric delivery vans, economic development director Robert Sturns told the City Council. The Rivian project would be a huge economic generator for the region, said Ray Perryman, an economist and president of The Perryman Group in Waco. Construction and development alone could lead to about $6.2 billion in gross product to the area, Perryman said in an email. By 2027, the annual benefits could include almost $2 billion on gross product, about $1.2 billion in personal income, and more than 30,000 to total job, he said. Perryman said the local government incentives would be recouped in fewer than seven years, and the annual return on investment would be about 19%. But, he cautioned that the project isn’t without risk… (LINK TO FULL STORY)
Joe Biden takes aim at states blocking mask mandates, setting Gov. Greg Abbott up for showdown with feds (Texas Tribune)
Texas Gov. Greg Abbott may soon be fighting a war on two fronts — with local officials and the federal government — to stave off mandatory COVID-19 prevention efforts after the Biden administration announced Wednesday it was going after states like Texas that try to ban universal masking at schools.
Saying that the federal government will not “sit by as governors try to block and intimidate educators from protecting our children,” Biden said he will use the U.S. Department of Education’s civil rights enforcement authority to deter states from blocking mask mandates in classrooms.
“I'm directing the Secretary of Education, an educator himself, to take additional steps to protect our children,” Biden said. “This includes using all of his oversight authorities and legal action, if appropriate, against governors trying to block and intimidate local school officials.”
“If you aren’t going to fight COVID-19, at least get out of the way of everyone else who’s trying,” Biden added.
Biden didn’t directly name Texas or Abbott in his Wednesday remarks, but both Florida and Texas have made national headlines for efforts to block schools from requiring masks, even as children under 12 remain ineligible for the vaccine and the delta variant affects mostly the unvaccinated… (LINK TO FULL STORY)
[NATIONAL NEWS]
Nursing home staffs nationwide reportedly will be required to be vaccinated against COVID-19 (Associated Press)
The Biden administration will require that nursing home staff be vaccinated against COVID-19 as a condition for those facilities to continue receiving federal Medicare and Medicaid funding. Biden will announce the move Wednesday afternoon in a White House address as the administration continues to look for ways to use mandates to encourage vaccine holdouts to get shots. A senior administration official confirmed the announcement on condition of anonymity to preview the news before Biden’s remarks. The new mandate, in the form of a forthcoming regulation to be issued by the Centers for Medicare & Medicaid Services, could take effect as soon as next month.
Hundreds of thousands of nursing home workers are not vaccinated, according to federal data, despite those facilities bearing the brunt of the early COVID-19 outbreak and their workers being among the first in the country to be eligible for shots. It comes as the Biden administration seeks to raise the costs for those who have yet to get vaccinated, after months of incentives and giveaways proved to be insufficient to drive tens of millions of Americans to roll up their sleeves. In just the past three weeks, Biden has forced millions of federal workers to attest to their vaccination status or face onerous new requirements, with even stricter requirements for federal workers in frontline health roles, and his administration has moved toward mandating vaccines for the military as soon as next month. Biden has also celebrated businesses that have mandated vaccines for their own workforces and encouraged others to follow, and highlighted local vaccine mandates as a condition for daily activities, like indoor dining. The new effort seems to be paying off, as the nation’s rate of new vaccinations has nearly doubled over the past month. More than 200 million Americans have now received at least one dose of the vaccines, according to the White House, but about 80 million Americans are eligible but haven’t yet been vaccinated. Last year CMS used similar regulatory authority to prohibit most visitors from nursing homes in an effort to protect residents. Biden’s upcoming announcement was first reported by CNN… (LINK TO FULL STORY)
U.S. states rush to meet deadline to join $26 billion opioid settlement (Reuters)
U.S. states are racing to meet a deadline to commit to a $26 billion opioid settlement with three drug distributors and the drugmaker Johnson & Johnson (JNJ.N), as some grapple with local resistance and concerns the amount isn't big enough to address the damage done by an epidemic of addiction.
Fourteen state attorneys general unveiled the proposed settlement with McKesson Corp (MCK.N), AmerisourceBergen Corp (ABC.N), Cardinal Health Inc (CAH.N) and J&J on July 21, kicking off a months-long process for states, counties and cities to sign on.
By Saturday, states must decide whether to join settlements that call for the distributors to pay $21 billion and J&J to pay $5 billion, money meant to help fund treatment and other services. The epidemic of opioid abuse has resulted in nearly 500,000 overdose deaths since 1999, according to the U.S. government.
The settlement's complex formula envisions at least 44 states participating, but ultimately the companies decide whether a "critical mass" have joined and whether to finalize the deal… (LINK TO FULL STORY)
Billions in US weaponry seized by Taliban (The Hill)
Billions of dollars of U.S. weapons are now in the hands of the Taliban following the quick collapse of Afghan security forces that were trained to use the military equipment.
Among the items seized by the Taliban are Black Hawk helicopters and A-29 Super Tucano attack aircraft.
Photos have also circulated of Taliban fighters clutching U.S.-made M4 carbines and M16 rifles instead of their iconic AK-47s. And the militants have been spotted with U.S. humvees and mine-resistant ambush protected vehicles.
While it’s virtually impossible to operate advanced aircraft without training, seizing the hardware gives the militants a propaganda boost and underscores the amount of wasted funds on U.S. military efforts in Afghanistan over the last 20 years.
“When an armed group gets their hands on American-made weaponry, it's sort of a status symbol. It's a psychological win,” said Elias Yousif, deputy director of the Center for International Policy’s Security Assistance Monitor.
“Clearly, this is an indictment of the U.S. security cooperation enterprise broadly,” he added. “It really should raise a lot of concerns about what is the wider enterprise that is going on every single day, whether that's in the Middle East, Sub-Saharan Africa, East Asia.”
The United States spent an estimated $83 billion training and equipping Afghan security forces over the last two decades… (LINK TO FULL STORY)