Austin school district files bond suit

Austin Independent School District filed a petition last week with a Travis County state court to validate the district’s recent $489 million bond referendum.

The district is seeking the ruling due to a pending lawsuit by the Travis County Taxpayers Union, which contends the district used deceitful language on the May 11 ballot.

A hearing is set for June on the district’s request.

The Austin school district filed the lawsuit because the attorney general’s office will not authorize the sale of bonds while a legal challenge is pending, said Mel Waxler, the district’s chief of staff and general counsel.

“Consequently, a single person or group can delay necessary public projects, such as the improvements to Austin schools, simply by filing a lawsuit — even if the lawsuit is without merit and is ultimately unsuccessful,” the district said in its petition to the court.

This is the district’s first bond validation lawsuit, Wexler said.

Voters approved two of the four parts of the $892 million general obligation bond referendum last month. The defeated proposals would have devoted $234 million of the proceeds to new schools and expansions at existing facilities to curb overcrowding, and $168 million for academic initiatives.

A state judge in April rejected a temporary restraining order sought by the Travis County Taxpayers Union to halt the May vote. The group contended that the ballot language was unclear and lacked information required by the Texas Education Code.

For reprint and licensing requests for this article, click here.
Bankruptcy Texas
MORE FROM BOND BUYER