October 16, 2024 - TRA Newswire -

Following a favorable court ruling, unless the Austin Transit Partnership is faced with even more delays, design and construction may be able to continue on the city's $7 billion Project Connect light rail and transportation plan that voters previously approved. 

The 15th Appeals Court dismissed two appeals from Texas Attorney General Ken Paxton's office that dealt with how the transit agency collects tax revenue. The AG's office had filed numerous lawsuits against the project on behalf of business owners and the state of Texas, claiming that Austin Transit Partnership (ATP) did not have jurisdiction to collect sales tax.

ATP is the agency charged with developing, funding and the construction of Project Connect, that would bring much needed mass transit relief to Austin's tangle of traffic. 

The AG's office filed the appeal on June 17th, the same day that a trial was set to begin that would have allowed ATP to confirm its ability to issue debt for the project through a bond validation process. Now that the AG's appeal has been denied, it opens the way for the court to move forward toward a positive ruling on ATP's authority to collect tax and issue contracts. 

Although the AG's office has not issued a statement following the dismissed appeal, Austin Mayor Kirk Watson did. “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.” 

Project Connect, funded by a voter-approved tax increase in 2020, has had to be scaled back in size and scope since its inception, due to inflation and legal wrangling. Backers stress that Project Connect will help address Austin's growing traffic pains as it's population continues to balloon. Half the project cost is expected to come from Federal funds and the balance from a voter-approved tax.

The project now consists of a proposed 10 mile light-rail system and other bus and transportation components. 

Photo credit: Project Connect