Watson warns of budget hits
And JD Vance gives Austin props on zoning.
I'm glad to see the mayor is sounding the alarm about the damage that the White House and the Lege are cooking up for Austin.
The Austin Monitor's Chad Swiatecki reports that Watson highlighted the prospect of "budget asteroids" during an address to the Real Estate C0uncil of Austin.
Along with the potential impact of tariffs on international goods, Watson explained to the room filled with developers and other real estate professionals how bond costs could increase by more than 20 percent in the near future based on the possible elimination of a federal tax exemption on bond funding. And there’s a potential new state law that would require a two-thirds approval by voters for local tax increases.
Taxing municipal bonds is one of the ideas Republicans on Capitol Hill are tossing around as they try to figure out how to pay for regressive tax cuts. It would make muni bonds a less attractive investment, of course, and would significantly increase the cost of infrastructure, which is a big problem in a country that has forgotten how to build things.
