ATX PULSE 7/26/24: AISD to Propose Tax Hike to Bridge $78M Deficit // Broadnax to Slow Down APD Chief FInalist Selection // DAA's Peart to Retire Next Year // Crowdstrike Outage Damage Estimated to be $5.4B

ATX Pulse

Everything YOU NEED TO KNOW about Austin.

Friday, July 26, 2024

By Matt Mackowiak

ATX PULSE UPDATE: Our emails received 30k+ views a day!

» Please consider becoming a paid subscriber at ATXpulse.com for $5/month or $50/year.

PRESENTING SPONSOR #1: Austin Baseball Commission

SPONSOR OPPORTUNITY: Want to sponsor ATX Pulse? We receive ~30,000 opens of our daily email! Email James for rates and availability.

Today’s Weather: H: 87° / L: 73°. Chance of rain. Latest forecast from Fox 7 Austin’s Zack Shields here.

TOP NEWS

~ “AISD considers tax hike to bridge $78 million deficit,” CBS Austin’s Monique Lopez – “Austin Independent School District’s Board of Trustees continues to look at ways to address the district's massive budget deficit. Tuesday night, their discussion focused on a possible Voter-Approval Tax Rate Election (VATRE) and how that could help the issue.

“I know the idea of a tax increase is difficult, but at the end of the day, we have to take care of our children,” said Education Austin president Ken Zarifis.

The board approved the district’s nearly $1 billion budget last month, but discussions aren't over on how to bridge the deficit gap.

AISD is currently facing a $78 million deficit but with a VATRE, it could go down to $41 million.

“It is an opportunity for the community to invest in its public schools,” Zarifis said.

If the board approves putting the VATRE on the November ballot and voters pass it, taxpayers will see the difference.

The average-priced home in the Austin area is about $563,000. Without a VATRE, the estimated taxes paid would be nearly $3,900.

With it, that would increase about $34 a month for homeowners, bringing estimated taxes to roughly $4,300.

“The tax rate that’s being proposed is very reasonable,” said Ben S., who the an uncle of an AISD student. “I know I will support it, and I will knock on doors and get on my neighborhood and my friends to vote for it, as well.”

With voter approval, a VATRE would add an estimated $41 million of revenue and could also fund staff pay increases next year.

“I would much rather talk to someone who’s paying a few more dollars and that we all do this collectively, than to face what will inevitably be cuts that have to happen,” Zarifis said.

But the move isn't the end all be all for solving the district’s budget issues.

“We are going to go through a process that looks at cost reduction strategies, regardless of whether a VATRE is successful or not,” said AISD superintendent Matias Segura.

Other options to reduce costs include removing elementary planning time, eliminating non-required buses, and eliminating summer school for students not required to take it.

“Looking at some of these things, like they’re devastating,” said District 6 trustee Andrew Gonzales. “I can’t imagine how we wouldn’t have a dramatically different district if some of these proposed cuts were to happen.”

The question then becomes, is VATRE really just a temporary fix?

“The VATRE doesn’t ultimately fix the whole problem, we have a lot of things that need to happen; we have a legislature that really has to invest in our kids,” said Zarifis.

The AISD Board of Trustees will decide whether a VATRE should be put on the ballot on Aug. 8 with Aug. 16 as a backup date.” CBS Austin

THE BLOTTER

~ “4 people, including 1 child, taken to hospital after North Austin crash,” KVUE’s Morgan McGrath – “Four people, including one child, were injured early Friday morning in a crash in North Austin.

According to a social media post from Austin-Travis County EMS (ATCEMS), two vehicles collided at the North MoPac Expressway service road northbound and West Parmer Lane. 

The incident happened just before 2:30 a.m., and two of the adult victims were taken to St. David's North Austin Medical Center with minor injuries. One child was also taken to St. David's Children's Hospital with non-severe injuries. 

A fourth victim was taken to Dell Seton Medical Center with life-threatening injuries, according to ATCEMS. 

There is no additional information available at this time.” KVUE

~ “License plate readers help capture man accused of ‘brutally’ attacking 80-year-old in northeast Austin,” KVUE’s Jeff Bell – “A 22-year-old man has been arrested after he allegedly followed an 80-year-old man home from the bank and “brutally attacked” him in northeast Austin.

According to the Austin Police Department (APD), officers responded to a call reporting a robbery on Inspiration Drive, near LBJ High School, on July 23.

Investigators said Christopher Phillips surveilled bank customers and targeted the man, believing he had withdrawn a large amount of cash. He allegedly followed the man home and assaulted him as he attempted to enter his house. Phillips is accused of stealing the man’s wallet and damaging his doorbell camera.

Sgt. Jennifer Taylor, with APD’s robbery unit, says they were able to track Phillip’s silver SUV using their recently installed automated license plate reading cameras around Austin.

“Members of the Violent Crimes Task Force and APD robbery detectives were able to track that vehicle based off of locations from those cameras,” Taylor said. “They narrowed down the location. They did a quick surveillance before the suspect came out of an apartment wearing the same thing he was wearing during the robbery.”

APD said Phillips was arrested within hours of the robbery taking place. The University of Texas Police Department also assisted with the investigation.

Taylor says crimes like these are informally known as "juggings" where someone waits at a bank or an ATM for someone to walk out with a large amount of cash or goods to steal from them. She says around $273,000 have been taken in almost 90 reported jugging cases just this year.

APD is reminding the public to be aware of vehicles that loiter in or near a bank parking lot and any vehicles that appear to be conducting stationary or mobile surveillance. Austinites are urged to be mindful of any vehicles that appear to be following them.

APD offers the following tips to help avoid becoming a victim of jugging:

• Before leaving the counter/ATM after receiving cash, secure it in a different bag (other than the small zipper cash bags or envelopes), such as a briefcase or purse

• Lock your car doors when you get into your vehicle

• If you believe you are being followed from a financial institution for any length, call 911 or drive to the nearest police station, fire/EMS station

• Speak with security at your bank to see if they can assist you with large withdrawals or if they have any safety suggestions when withdrawing a large amount of cash” KVUE

~ “East Austin basketball argument leads to accidental shooting,” CBS Austin’s Tara Brolley – “A man was arrested after he allegedly shot himself by accident following a confrontation at the Zaragoza Recreation Center.

According to an arrest affidavit, Austin police officers responded to 2608 Gonzales Street at 7:14 p.m. on July 23. Several people called 911 reporting that gunshots had been fired.

A detective spoke with a victim. He said he was playing on half of the basketball court with his son when they were approached by a man, later identified as 31-year-old Jacob Wheatley.

Wheatley, along with others, started playing on the full court. The victim confronted him, and they took the disagreement outside.

Wheatley allegedly grabbed an “AR-15 style rifle” and pointed it at the victim. According to the affidavit, a shot was fired and surveillance video showed Wheatley “[hopping] on one leg” before getting in a vehicle and driving away.

At 7:30 p.m., a man arrived at St. David’s Medical Center with a gunshot wound. He matched the suspect’s description.

According to online jail records, Wheatley was taken to the Travis County Jail. He is charged with Aggravated Assault with a Deadly Weapon and is being held on a $30,000 bond.” CBS Austin

CITY HALL

~ “City Manager Broadnax still considering finalist to choose as Austin’s next police chief,” Austin American-Statesman’s Skye Seipp – “T

City Manager T.C. Broadnax is still undecided on whom of the two finalists will be Austin's next police chief, delaying a decision beyond what was previously stated, according to a message from his office Friday.

Broadnax was expected to announce the sole finalist for the top job Friday, with the City Council possibly confirming his selection next Tuesday during a special called meeting. Broadnax on Friday did not say when he might make his selection.

"This position is too critical to our Police Department, the City organization as a whole, and this community to rush," Broadnax said in a news release. "Therefore, I’m going to take additional time to consider our two very qualified candidates before making a final decision."  

Broadnax said he is still reviewing feedback from the public, stakeholders and Austin City Council members.

Michele Gonzalez, spokesperson for the city manager’s office, said the delay also came about because the candidates hadn’t been able to meet with all the City Council members before Friday. 

Gonzalez said that Broadnax does not have a timeline for when he’ll make his decision, adding that he wants more time to reflect on all of the feedback he’s received. She also cited working through the budget as another reason for a delay in the selection. 

Friday's announcement comes after a monthslong search process that advocates from across the political spectrum have lamented as being secretive and as one that should have produced a larger field of finalists.

Only two out of 32 people who applied were announced as finalists: Lisa Davis, an assistant chief with the Cincinnati Police Department, and Jeffrey Norman, chief of the Milwaukee Police Department.

Some residents have called the applicant list weak, with only a few candidates meeting the city's requirements of being a big city chief — while others were rife with controversy.

The city hired Mosaic Public Partners to conduct the executive search, agreeing to pay the firm $60,000. Gonzalez previously told the American-Statesman the city was satisfied with Mosaic's work while adding that Davis and Norman were strong contenders.

Broanax said the city "worked diligently to find the best candidates possible."

Applications for the chief position opened May 15 and closed June 10, although the job posting never actually went away, with the city stating that it doesn't close applications for executive-level positions until the post is filled.

The Austin Police Department has been without a permanent chief for almost a year after Joe Chacon retired in September.

Opening the police chief application just days after he began his role as the city's chief administrator, Broadnax had said in a May interview that he hoped to have finalists selected or a candidate identified in late July with a start date sometime in September at the latest.

In delaying the selection, it’s unclear when a new police chief would start.

Another of his top priorities was reaching a deal with the Austin Police Association, the union representing Austin police officers. Broadnax said in May he hoped to have a contract finalized in July, but that doesn’t seem likely after Wednesday’s bargaining session when negotiations on a voter-approved oversight measure and wage proposals remained unresolved.” AAS ($)

~ “Downtown Austin Alliance CEO Dewitt Peart to retire early next year,” Austin Business Journal’s Bob Sechler – “Dewitt Peart, president and CEO of the Downtown Austin Alliance, plans to retire early next year, prompting a national search for a successor.

The nonprofit organization that advocates for and promotes downtown as a business and entertainment district announced July 25 that it has hired executive search firm HRS Inc. to lead the effort.

"Ultimately, what we want is a really strong leader," said Whitney May Knight, chair of the DAA board.

"We want somebody who has a very strong ability to work with partners and collaborate and build consensus and really lead the organization" as Peart has been able to do, Knight said.

Peart, who will be 65 this year, has helmed the DAA since early 2015. He previously worked as executive vice president of economic development and public affairs at the Allegheny Conference on Community Development in Pittsburgh, Pennsylvania, as well as president of the Pittsburgh Regional Alliance and president of the Greater Pittsburgh Chamber of Commerce.

His tenure has encompassed Austin's boom but also the pandemic years, when workers vacated downtown offices and tourists and locals stayed away from restaurants and crowded entertainment venues.

Downtown has been rebounding, but the aftermath of the pandemic is still being felt — average downtown visitor traffic came in at 86% of pre-pandemic levels in 2023, according to the DAA's State of Downtown report released in May, while other statistics have pegged office vacancy rates downtown at about 25%.

The upshot is downtown Austin should be able to weather current economic woes that include the slow trickle of downtown workers returning to offices and elevated interest rates, Peart said at the organization's State of Downtown event on May 15.

“Like many downtowns nationwide, we’re confronted with economic challenges, rising interest rates and inflation … We firmly believe downtown Austin is better positioned to weather the downturn most U.S. city centers are facing,” he said at the time. While development downtown has shifted from “hyperspeed” to a more steady pace, investors still see the central business district as a secure investment, he added.

Knight credited Peart's leadership with helping the city's central business district recover, but she also noted that whoever is selected as the DAA's next leader must be prepared to surmount some continuing hurdles.

“Office vacancies are a challenge, but they also are a great opportunity to really activate the urban space,” she said, citing efforts such as the Downtown Austin Space Activation program that connects vacant properties with local businesses, artists and entrepreneurs.

Such efforts can "ignite the creative scene and the retail scene and (result in) using the downtown more than just for office space to really make it a more vibrant city," Knight said.

She also cited public safety and affordability as ongoing issues that Peart's successor will help address.

The last day to submit a resume and qualifications to be considered for the position is Aug. 23.

The DAA is aiming to name a new CEO by the end of the year or in early 2025, Knight said. Peart's tenure will overlap with the new hire so that he can help with the transition.

The process of finding a new leader for the DAA began early this year after Peart informed the organization of his intent to retire. HRS was hired in May and interviews were held with dozens of stakeholders to hone the job description and responsibilities, culminating in the official announcement of the opening.

"We expect to have a lot of interest in this position," Knight said. "All of the experts in the industry have told us this is a very attractive opportunity" because Austin is considered a great place to live and because the DAA "has developed a really strong reputation as a leader among downtown management organizations."

The DAA ranks at the top of the ABJ's most recent list of business advocacy groups in the metro in terms of revenue, with about $10.2 million in 2022. The group has approximately 920 members, and a spokesperson said 2023 revenue was $12.9 million.” ABJ ($)

BUSINESS NEWS

~ “Crowdstrike apologizes for estimated $5.4 billion in damages with $10 Uber Eats gift cards” Austin American-Statesman’s Beck Andrew Salgado – “While the chaos of last week’s Crowdstrike outage has mostly been cleaned up, the numbers behind the aftermath are just rolling in. According to a statement from insurer Parametrix,  at least $5.4 billion in damages occurred to just Fortune 500 companies — over half of which employ Crowdstrike for cybersecurity services. 

Parametrix also added that insured losses stemming from the outage will likely total $540 million to $1.08 billion for the Fortune 500 companies. 

The outage started on Friday morning when, according to an alert sent by CrowdStrike to its clients and reviewed by Reuters, in a software update, the company's "Falcon Sensor" caused Microsoft Windows to crash and display a blue screen, known informally as the "Blue Screen of Death."

In a post on X, formerly Twitter, CrowdStrike CEO George Kurtz apologized various times and said the company "is actively working with customers impacted by a defect found in a single content update for Windows hosts. Mac and Linux hosts are not impacted. This is not a security incident or cyberattack."

As negative PR continues to surround the company, it is responding by adjusting operations and ... sending $10 Uber Eats gift cards? Here's what you need to know.

How has Crowdstrike responded to its recent outage?

Beyond public apologies from its CEO, Crowdstrike released a blog post detailing how it will change operations going forward to avoid a similar event. This included adjusting its update verification system to better filter faulty code. Additionally, the company said that it was no longer going to release mass updates to avoid the possibility of mass outages.

Another way that Crowdstrike attempted to make amends was through Uber Eats gift cards worth $10. According to TechCrunch, a tech news website, the Uber Eats voucher was accompanied by an email that read: “And for that, we send our heartfelt thanks and apologies for the inconvenience,” the email continued, "To express our gratitude, your next cup of coffee or late night snack is on us!”

The response to the voucher was a mix of confusion and frustration and due to high usage rates Uber flagged some of the vouchers as fraud making them unusable.

What is CrowdStrike?

CrowdStrike is a major player in the cybersecurity field, and the company is known for its unique approach to threat detection and response — which it ingrains in its products. Founded in 2011 in Sunnyvale, Calif., the company is now headquartered in Austin and, in the last decade, has specialized in endpoint security, threat intelligence and cyberattack response services.

CrowdStrike's flagship product, Falcon, uses artificial intelligence and machine learning to identify and mitigate threats in real time. The system the company has created is versatile in that it is able to provide protection across various devices and networks — which is why Friday’s outage was so widespread. 

CrowdStrike has a fairly good reputation and, in the past, has been able to uncover high-profile cyberattacks by North Korea. The company is known for its ability to rapidly respond to security breaches, helping organizations safeguard their digital assets against sophisticated cyber threats.” AAS ($)

SPORTS

~ OLYMPICS / TEXAS SWIMMING:  “Texas swimmer Carson Foster carries his family’s legacy, hopes into Paris Olympics,” Austin American-Statesman’s Caleb Yum — “When Carson Foster competes in the Paris Olympics, the Texas junior will be representing not only Team USA, but a legacy of swimming siblings.

His older sister, Hannah, a former Tennessee swimmer, retired a few years ago. And his older brother, Jake, recently competed in the U.S. Olympic Trials along with Carson, ending his career after he failed to qualify for Paris in the 200-meter breaststroke.

“I think the hardest part of this whole thing is, I mean, Jake is my best friend,” Carson recently told the American-Statesman. “There’s very few people I love more in this world."

Who is the best swimmer in the family? It might be arguable, but one thing is for certain: The time the three Fosters spent swimming together gave Carson a path of success that has taken him to Paris.

Starting to swim at an early age

The Fosters all started swimming competitively at the same time. Each showed an aptitude for the sport that went beyond simply being good, but there was always something different about Carson. 

The athletic gifts have been obvious since he broke Michael Phelps’ under-10 100-meter butterfly national record. But what really set him apart from the other two was his love of the sport. 

Hannah labels herself as someone who was dedicated to swimming and school. Jake had plenty of talent as a swimmer but always wanted to be a doctor and entered medical school after the Olympic trials. But Carson has always been laser-focused on swimming.

“Carson would be watching YouTube videos on different professional swimmers under the water, their technique,” Hannah recalled. "I remember getting so frustrated that he’d be giving me technique advice, and he had the background to be giving it to me, too. ... He did study it like a science.” 

The curse of being the youngest is that it can feel as if someone is always ahead of you. Hannah and Jake got iPhones before Carson. When he was 13, his older siblings qualified for the Winter Juniors while he didn’t. But being consistently behind his siblings caused Carson to develop a desire that's pushed him to get better.

He’s always had a target to chase. Jake, in particular, was someone who always seemed one step ahead of him growing up. 

“Little brother always chases big brother,” Carson said. “That definitely pushed me as a youngster.” 

The two have been inseparable for most of their lives. Being born only 13 months apart gave them less of an older/younger sibling dynamic and more of a straight-up rivalry. 

There were ebbs and flows throughout their junior careers in terms of who was better at the moment. Jake got the better of Carson a few times throughout their childhood, last beating him in the 400 individual medley in the U.S. Nationals 18-and-under final. 

Jake eventually realized his best chance at making the U.S. Olympic team was in the breaststroke, so he moved on from competing against Carson in the IM and focused on his niche. But being able to spend most of their careers together has allowed them to compete with the person who could push and love them the most. 

“I don't think I would have been as good as I was swimming without Carson, and I don’t think he would have been as good as he is without me,” Jake said. “We were pushing each other and keeping each other accountable.”” AAS ($)

AUSTIN CULTURE

~ DINING: Austin’s favorite taco chain takes top honors on USA Today 10-best list. Austin Culture Map

WHAT TO DO THIS WEEKEND

FRI

~ LIVE MUSIC: Big Head Todd and the Monsters (ACL Live, Austin). Tickets $32.50 and up. Show at 7:30pm. More info here.

SAT

~ LIVE MUSIC: Janet Jackson with Nelly (Moody Center, Austin). Tickets $39.95 and up. Show at 8pm. More info here.

~ COMEDY: Kathleen Madigan (ACL Live, Austin). Tickets $37.50 and up. Show at 7pm. More info here.

ALL WEEKEND

~ FOOD: 25 Kid-Friendly Restaurants That Aren’t Boring. Austin Eater

COOL JOB ALERT

~ASSISTANT PRESS SECRETARY: Office of Governor Greg Abbott (Austin, TX). Monthly salary: $4,166.67 - $5,286.67. Info / apply here.