Texas Attorney General Paxton targets Austin's light-rail plans

Texas Attorney General Ken Paxton looks up at the gallery during his impeachment trial in the Senate last September. Paxton argues in court filings that Austin's method of paying for the light-rail system violates state law, a charge local transit officials reject.

The city transfers tax money to the Austin Transit Partnership, an entity authorized by voters to build and finance light-rail. ATP needs big loans to cover the high upfront construction costs. The tax cash helps ATP secure loans and then pay them off.The transit map adopted by the Austin City Council, Capital Metro and ATP shows light-rail stretching in three directions from downtown: north to 38th Street, south to Oltorf Street and east to Yellow Jacket Lane.

"The City attempted to create a contract with the voters that ... the Tax Code did not authorize," Paxton said in the filing, calling the funding plan"void at the time of its original execution."to remove any doubt about the local government corporation's ability to issue bonds.

In legal documents, ATP insists it is following state law. The city is allowed to collect revenue from the voter-approved tax increase and transfer the money to ATP. As a local government corporation, ATP has the authority to borrow money to carry out its purpose, the agency says in its filing.

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