Texas Tribune
San Antonio area leaders wrestle with race-based contracting
by By Andrea Drusch and Tracy Idell Hamilton, San Antonio Report, The Texas Tribune – 2024-06-11 17:28:01
SUMMARY: A national debate on affirmative action is impacting San Antonio's procurement industry. Conservative groups are driving lawsuits, aiming for Supreme Court rulings to dismantle race-based preferences. A San Antonio-based company, DigitalDesk Inc., sued Bexar County, alleging race and gender discrimination in federal grant distribution, but the case was dismissed. Despite the ruling, the threat of legal actions persists, affecting local policies. San Antonio, an early adopter of race-conscious contracting, saw significant success but is shifting focus due to potential legal challenges. Local leaders aim to support all small businesses amidst ongoing legal and economic pressures.
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A national political fight over affirmative action — including lawsuits filed systematically across the U.S. by conservative groups hoping to take the issue up to the Supreme Court — is quickly reshaping the procurement industry in one of the largest minority-majority cities in the country.
In September, San Antonio-based software company DigitalDesk Inc. sued Bexar County after it wasn't selected to receive a federal pandemic aid grant, alleging the company was placed at the bottom of the priority list because its owner, Greg Gomm, is white and male.
A judge dismissed the case last month, saying Gomm didn't have standing because he didn't file the required paperwork to be considered for the grant.
Despite that setback, “it's just a matter of time” before one of the cases makes it to the Supreme Court, Dan Lennington, a lawyer with the conservative Wisconsin Institute for Law & Liberty who is representing Gomm and plans to appeal the case, told the San Antonio Report.
“One of the long-term goals of our project is to dismantle all race-based preferences in the procurement industry or the contracting industry nationwide,” Lennington said.
Against that backdrop, the City of San Antonio has delayed action on updating its race-conscious scoring system for city contracts and is shifting focus toward a plan to help businesses regardless of race.
Meanwhile, Bexar County commissioned a study in 2021 that found that it had the justification to implement a race-conscious policy for small businesses, but delayed action to monitor the shifting judicial landscape. It has yet to implement such a policy.
Now, the threat of legal action from the right — combined with pressure from those who want existing race-conscious policies to stay in place — have complicated efforts to fairly disperse a rare influx of federal dollars locally.
The region is set to receive a bounty of federal money from the Biden Administration's infrastructure laws in the coming years, and local leaders are under pressure to make sure as many local businesses as possible share in the wealth in projects like the city's $2.5 billion airport redevelopment and VIA Metropolitan Transit's $750 million rapid bus lines.
Bexar County's distribution of federal pandemic relief to small businesses awarded preference based on race and gender, leading to the lawsuit.
The county and LiftFund, which administered the program, were able to convince a judge that Gomm didn't have standing to bring the lawsuit because he didn't provide the right tax forms.
But Neel Lane, a San Antonio lawyer known for championing civil rights causes who represented the county and LiftFund, said the practice of using race and gender in such a selection process isn't likely to survive today's judicial landscape.
Fair Contracting Coalition member Christopher Herring speaks at a meeting with small businesses in March.
Credit:
Brenda Bazán/San Antonio Report
“The Supreme Court opened the door for a flood of cases like this DigitalDesk” suit when it ruled last summer that colleges could no longer use race as a factor in admissions, he explained.
That decision established that race could no longer be used as a proxy for “disadvantaged” — something the conservative legal institute that's representing Gomm is now seeking to apply to all government programs.
“If [local governments] want to help businesses that are disadvantaged, they should help businesses that are disadvantaged,” said Lennington. Instead they “basically stereotype people based on race … presuming that everybody in a certain racial category deserves help.”
His group won a lawsuit in March that forced a federal agency created to help minority-owned businesses to open its doors to all races. A different conservative legal foundation is battling the City of Houston over its minority contracting program.
“There are now a host of organizations purporting to champion the rights of white people to challenge any attempt to address social and economic imbalances,” Lane said. “The Supreme Court took a sledgehammer to that body of law with just one ill-considered decision.”
‘Remove the training wheels'
San Antonio was an early adopter of race-conscious contracting, and one of the first cities in the country to put a program on the books to help more women and minority-owned businesses land government contracts in 1989.
By the city's own metrics, it has been a huge success.
In 2023, just over half of the city's contracts — worth about $330 million — went to 517 unique small, minority- and women-owned businesses, up 23% over the previous five-year time frame according to the program's annual report.
Though there's plenty of political appetite to expand on that progress, city leaders say the latest data indicates it's now time to move away from race- and gender-conscious points in the scoring matrix, specifically because they've worked.
The city conducts a disparity study every five years to comply with legal requirements that say it must prove “compelling interest” in maintaining these programs. According to the most recent one, white women- and Hispanic-owned businesses were performing so well they no longer need a finger on the scale.
Further, the city found that in recent contracts, 97% of those businesses that were awarded with race and gender points would have won their contracts without them.
“The data is going in the right direction,” said Mayor Ron Nirenberg. “At some point, by design and by legal requirement, we have to start taking the training wheels off.”
Not everyone agrees. Notably, the most recent disparity study found that businesses owned by African Americans, Asians and Native Americans were still underutilized.
“All of those victories are because of race-conscious [points],” said Christopher Herring, a member of the Fair Contracting Coalition, which represents minority-owned businesses fighting the changes.
A plan to vote on new contracting policies without race and gender points was pulled from the City Council's agenda in December amid concern that it was moving too swiftly away from a program that's helping historically disadvantaged groups.
“It sounds like we're taking our foot off the pedal and the race is still going on,” said Councilwoman Melissa Cabello Havrda (D6) at the time. “We're slowing down because we're afraid someone else is going to slow us down.”
Proponents of preserving race and gender points have found some supporters on the City Council, who have urged the city to be bold in the face of a potential legal onslaught.
San Antonio District 2 Council Member Jalen McKee-Rodriguez has said the city shouldn't remove race and gender preference points in contracting just because of the threat of legal action.
Credit:
Brenda Bazán/San Antonio Report
“I would much rather us do right and have a judge tell us that it's wrong,” said Councilman Jalen McKee-Rodriguez (D2). “We're always being sued, we're always going to be getting sued.”
A national focus on San Antonio
Landing a government contract can be life-changing for a small business.
With the federal government poised to spend north of a trillion of dollars on infrastructure projects, San Antonio was one of two cities chosen in 2022 for a national project by Drexel University's Nowak Metro Finance Lab focused on getting that money to Black- and Hispanic-owned businesses.
Given the uncertainty of the legal landscape, however, San Antonio elected to widen the focus to helping all small businesses.
“It's a different approach than contracting preference, per se,” said Assistant City Manager Alex Lopez, who oversees economic development. “But if we're looking for the outcome of growing businesses, this is absolutely another approach that we can take.”
While the pivot away from racial preferences upsets some businesses, people who've been working on this issue for decades in San Antonio agree that most of the hurdles small businesses face getting contracts happen long before the selection process.
For example, small businesses have trouble getting certifications they need to compete for contracts, and the agency responsible for certifying them has been underfunded and understaffed for years.
The city and county tapped former mayor Henry Cisneros, who oversaw development of the city's race-conscious contracting program in the late 1980s, to head up a group tasked with tearing down those barriers.
“It was a breakthrough then,” Cisneros said of the original race-conscious contracting program, but “this effort is much more comprehensive and has a better chance to enhance local economic development.”
Cisneros convened the top executives from more than a dozen public agencies in Bexar County, including public universities and utility companies, which spend billions of dollars with local businesses on goods and services each year.
The group plans to streamline and standardize its procurement procedures and create a physical office at UTSA where business owners can meet with experts to help them navigate the procurement process. Last month, its leaders also agreed to take over and pump money into the beleaguered certification agency.
While local governments try to thread the needle, Cisneros says that approach will allow decades of work to continue, “regardless of the current procurement policy debates.”
Disclosure: Institute for Economic Development – UTSA, LiftFund and Via Metropolitan Transit have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.
Just in: Former U.S. Rep. Liz Cheney, R-Wyoming; U.S. Sen. Jon Fetterman, D-Pennsylvania; and Oklahoma Gov. Kevin Stitt will take the stage at The Texas Tribune Festival, Sept. 5–7 in downtown Austin. Buy tickets today!
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The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.
Texas Tribune
UT-Austin offers probation to students arrested in protests
by By Asad Jung, The Texas Tribune – 2024-07-05 17:44:44
SUMMARY: The University of Texas at Austin is disciplining students arrested during pro-Palestinian protests in April by offering “deferred suspension,” allowing students to avoid suspension by proving educational growth. Deferred suspension requires students to take an exam on university rules and avoid appealing the decision. Some students, like Ari Lenahan, see this as a relief compared to harsher penalties faced by peers at other universities. Over 130 protesters were arrested, but Travis County Attorney Delia Garza declined to pursue criminal trespassing charges. The university's heavy-handed response has sparked criticism from students, faculty, and free speech advocates.
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The University of Texas at Austin has begun disciplining students who were arrested in pro-Palestinian demonstrations in April, scolding them for their actions but offering them a path to avoid suspension.
In letters sent out to students this week, first reported by KUT, university officials said it would be appropriate to suspend them for their actions during the protests but would give them the option to take “deferred suspension” instead, a form of probation that would allow students to remain in class and keep the disciplinary action from appearing on their final transcripts.
“Recognizing our commitment to educational growth, we want to offer you an alternative path to avoid suspension by proving that you have learned from this experience,” reads one of the letters obtained by The Texas Tribune.
Students who choose deferred suspension must agree to take an exam testing their knowledge of the university's rules and agree not to appeal the decision. The status would be active until July 7, 2025.
Those who decline that option would be suspended, the letter says. Students may also appeal the disciplinary sanctions through a university hearing.
Ari Lenahan, a UT-Austin student set to graduate in December, said he was relieved the university offered him deferred suspension since students at other universities across the country are facing harsher punishments after participating in pro-Palestinian demonstrations. He said it may be the best choice for him since he aims to graduate this year.
“It's a lot clearer where I stand now, at least in the university's eyes,” he said.
Lenahan still has a hold on his account preventing him from registering for classes in the fall but said the letter he received Wednesday states any holds will be removed once his case is resolved.
Anne-Marie Jardine, a recent graduate, received a sanction letter concerning her involvement in an April 24 pro-Palestinian demonstration. Jardine was told she would be under deferred suspension for one year if she were to re-enroll at UT-Austin. Jardine said she hasn't received her official diploma from the university yet.
Many other students under investigation have not yet been informed about how the university plans to move forward with their cases. Sam Law, a PhD candidate who was arrested on April 29, said that he expects the university will contact him soon.
More than 130 protesters were arrested at pro-Palestinian demonstrations on UT-Austin's campus in late April. In resolute efforts to dispel the protesters, law enforcement at the time deployed pepper spray and flash-bang explosives and charged students with horses. State troopers were deployed by Gov. Greg Abbott to help quash the protests and had a hand in the arrests.
Those arrested were charged with criminal trespassing but Travis County Attorney Delia Garza declined to pursue those charges.
In the aftermath of the protest, many students, faculty and free speech advocates questioned UT-Austin's heavy-handed response to the protests and criticized state GOP leaders' support of the arrests. Just a few years ago, Abbott had championed state legislation that protected free speech on college campuses, leading free speech advocates to ask who gets to enjoy free speech protections in Texas.
UT-Austin leaders, meanwhile, have vowed to carry out discipline against students who violated campus policies. Seniors in the class of 2024 were afraid their diplomas would be withheld, though they were permitted to join graduation ceremonies in the spring.
Sneha Dey contributed to this story.
Disclosure: University of Texas at Austin has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.
Just in: Former U.S. Rep. Liz Cheney, R-Wyoming; U.S. Sen. John Fetterman, D-Pennsylvania; and Oklahoma Gov. Kevin Stitt will take the stage at The Texas Tribune Festival, Sept. 5–7 in downtown Austin. Buy tickets today!
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The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.
Texas Tribune
Hurricane Beryl likely to hit Texas coast Monday
by By Emily Foxhall, Berenice Garcia and Stephen Simpson, The Texas Tribune – 2024-07-05 16:47:07
SUMMARY: Texans are being urged to prepare for Hurricane Beryl, expected to make landfall as a Category 1 or 2 storm along the Texas coast on Monday. Currently crossing Mexico's Yucatan Peninsula, Beryl could hit anywhere from northern Mexico to the mid-Texas coast. Officials stress vigilance and preparation, especially for those along the Gulf coast, and advise stocking up on essentials like food and water. Emergency measures include distributing sandbags and readying evacuation plans. Beryl, an unusually strong early-season storm, has already caused significant Caribbean damage, with forecasters predicting a highly active hurricane season exacerbated by climate change.
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Texans need to prepare for Hurricane Beryl, which is likely to make landfall on the state's coast as a Category 1 or 2 storm on Monday, state emergency officials said.
The record-setting storm was moving across Mexico's Yucatan Peninsula on Friday, leaving forecasters still unsure exactly where along the Texas coast will see the worst rainfall and wind.
As Beryl left behind a trail of destruction across Caribbean islands, state officials urged Texans along the entire Gulf coast to pay close attention and prepare for a dangerous storm, particularly people vacationing during the July 4 holiday weekend.
“Everyone along the coast should be paying attention to this storm,” Lt. Gov. Dan Patrick said at a news conference in Austin. Patrick is serving as acting governor as Gov. Greg Abbott travels in Asia on an economic development trip.
Residents should be gassing up their vehicles and making sure they have food and water for themselves and their pets, Texas Division of Emergency Management Chief Nim Kidd said.
“A lot of people are out having fun right now, and that's a good thing, and we want them to continue to do that, but we also want them to prepare,” Kidd said. “We need a prepared community, not a panicked community.”
Boarded windows at the H-E-B Plus! grocery store in Brownsville on July 5, 2024.
Credit:
Michael Gonzalez for The Texas Tribune
Officials in the Rio Grande Valley and Corpus Christi have been distributing thousands of sandbags to help people prepare for potential flooding. South Texans have been eager for rain because the two major reservoirs on the Rio Grande have reached near or record lows in June.
Forecasters on Friday expected Beryl to make landfall anywhere from northern Mexico to the mid-Texas coast. The storm appeared likely aimed for South Texas but experts warned its path could shift north to Corpus Christi or Matagorda Bay.
Tropical storm-level winds would likely arrive Sunday night, according to the National Hurricane Center. Areas from Brownsville to Corpus Christi faced the greatest wind threat under the current forecast.
Heavy rain could begin Sunday and last through Tuesday. The National Hurricane Center predicted four to eight inches to fall along the South Texas coastline, with higher amounts in some spots, and up to six inches from Corpus Christi to Matagorda Bay. Forecasters expected the storm to slow over land, which would increase the risk of flooding.
Rip currents and high seas starting late Friday will make coastal conditions dangerous.
In the Rio Grande Valley, officials were preparing for possible flooding.
The eastern part of Hidalgo County tends to be hit the hardest during heavy rains, but the county was taking steps to mitigate flooding there, said Ricardo Saldaña, Hidalgo County's emergency management coordinator. Officials have placed water pumps near flood-prone areas and worked with contractors to prevent flooding at drainage project sites by covering up excavation holes.
Saldaña warned residents to make their own preparations by stocking up on food and water, preparing an emergency kit, and making arrangements with friends and family to relocate if necessary.
Sandbags at a county facility in Brownsville on July 5, 2024.
Credit:
Michael Gonzalez for The Texas Tribune
Cameron County Judge Eddie Treviño, Jr. recommended that people in recreational vehicles leave county parks.
“If you don't feel safe, evacuate,” said Tom Hushen, Cameron County's emergency management coordinator.
If there is flooding, Hushen said they were prepared to mobilize fire trucks and ambulances to help people evacuate. But high winds could pose another threat. Winds of more than 90 miles per hour could cause those vehicles to topple over. In that scenario, county officials would have to deploy larger vehicles like dump trucks.
Hushen said any power outages would prompt the opening of emergency shelters. He also advised residents to tie down any loose items in their yards and to bring in all patio furniture because high winds could turn those objects into projectiles.
“Listen to the warnings,” Hushen advised residents. “Things could change at a moment's notice.”
Beryl has astounded meteorologists with its strength so early in the summer. Warmer-than-normal ocean temperatures helped Beryl rapidly strengthen into a Category 4 storm in late June — becoming the first recorded Category 4 storm to form in June, according to the National Oceanic and Atmospheric Administration.
Beryl strengthened into a Category 5 and tore across the Caribbean, causing devastation in Grenada and Jamaica. It pushed onto the Yucatan Peninsula early Friday as a Category 2 storm.
“Beryl is so out of place historically given how early in the season it is and how strong it got,” said Houston-based meteorologist Matt Lanza, who helps write a blog on tropical weather called The Eyewall. “Typically you don't see that sort of thing until August — not the end of June, beginning of July.”
Federal forecasters expect this hurricane season, which began June 1, to be a bad one. They predicted to see 17 to 25 named storms form, which was more than they had ever forecast before a season's start. They believed four to seven of those would be Category 3 storms or stronger.
Climate change driven by people burning fossil fuels is causing oceans to warm and makes hurricanes more likely to be stronger. Scientists also say climate change may make rapid intensification of storms more likely — as happened with Beryl.
“To look at a satellite on June the 30th or July the 1st and to see a storm of Beryl's magnitude is almost unbelievable,” said Michael Lowry, a hurricane expert for WPLG TV in Miami.
Reporting in the Rio Grande Valley is supported in part by the Methodist Healthcare Ministries of South Texas, Inc.
Just in: Former U.S. Rep. Liz Cheney, R-Wyoming; U.S. Sen. John Fetterman, D-Pennsylvania; and Oklahoma Gov. Kevin Stitt will take the stage at The Texas Tribune Festival, Sept. 5–7 in downtown Austin. Buy tickets today!
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Texas Tribune
Texas cities lost 88 billion gallons of water in 2023
by By Juan Salinas II, The Texas Tribune – 2024-07-05 05:00:00
SUMMARY: Texas' major cities reported losing approximately 88 billion gallons of water in 2023 due to aging infrastructure and extreme heat, leading to substantial financial losses and strained water supplies. The largest losses were in Houston (31.8 billion gallons), San Antonio, and Dallas, attributed mainly to leaks and main breaks. Efforts to address this include Houston Public Works' pursuit of funding, Fort Worth's advanced metering and water management, and San Antonio Water System's new conservation plan. The state now has a $1 billion Water Fund for infrastructure, though experts like Jennifer Walker argue that significantly more investment is needed.
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Texas' most populous cities lost roughly 88 billion gallons of water last year because of aging water infrastructure and extreme heat, costing them millions of dollars and straining the state's water supply, according to self-reported water loss audits.
The documents show that bigger municipalities are not immune to water issues often seen in smaller, less-resourced communities around the state. All but one big city saw increased water loss from last year's audits.
While cities are losing water because of inaccurate meters or other data issues, the main factors are leaks and main breaks.
Here's how much each of Texas' biggest cities lost last year, according to their self-reported audits:
- Houston: 31.8 billion
- San Antonio: 19.5 billion
- Dallas: 17.6 billion
- Austin: 7.1 billion
- Fort Worth: 5.9 billion
- El Paso: 4.8 billion
Houston, San Antonio, Dallas, Austin, Fort Worth and El Paso must submit water loss audits to the Texas Water Development Board yearly. Other water agencies must do audits only every five years, unless the city has over 3,300 connections or receives money from the board.
“What we have right now is not sustainable [or] tenable,” said Jennifer Walker, National Wildlife Federation's Texas Coast and Water Program director.
The cities of Houston and Dallas saw the biggest increase in lost water reported. Houston saw a 30% jump from last year's audit, while Dallas saw an increase of 18%.
Houston is the largest populous city in the state, home to roughly 2.3 million Texans; it lost around 31 billion gallons of water last year.
Houston Public Works blames the region's long drought from June 2022 to December last year for the increase. Droughts cause clay in soil to dry up and shrink, stressing older water lines and making them more likely to break and leak. Officials said this, combined with aging infrastructure, led to a significant increase in water leaks across the city.
“HPW will continue to pursue all funding options available to help replace aging infrastructure,” the Houston spokesperson said.
Aging infrastructure isn't only a Houston problem. Dallas officials said they only expected a roughly 4% increase in water loss in 2023. They saw a double-digit increase instead.
A Dallas Water Utilities spokesperson said the city is investigating the cause of the increase and “reviewing records to ensure all allowable unbilled/unmetered authorized uses were properly accounted for in the 2023 calculation.”
On the other side of North Texas, Fort Worth saw an increase from 5.6 billion gallons lost in 2022 to 5.9 billion gallons in 2023, losing Cowtown more than $8 million.
Walker, from the National Wildlife Federation, said numbers are also rising because cities are getting more accurate in reporting water loss.
Fort Worth has a “MyH2O program” that replaced all manual read meters with remote read meters and implemented a Real Water Loss Management Plan in 2020 to focus the city efforts related to leak surveys, leak detection and the creation of district metering areas.
“It is actually a testament to how we are using available data to make better decisions and improve reporting with a higher level of confidence,” said Fort Worth Water Conservation Manager Micah Reed.
Last year, voters passed a proposition that created a new fund specifically for water infrastructure projects that are overseen by the Texas Water Development Board.
The agency now has $1 billion to invest in projects that address various issues, from water loss and quality to acquiring new water sources and addressing Texas' deteriorating pipes. It's the largest investment in water infrastructure by state lawmakers since 2013.
Walker calls the $1 billion a “drop in the bucket.”
Texas 2036, an Austin-based think tank, expects the state needs to spend more than $150 billion over the next 50 years on water infrastructure.
While some of the Texas Water Fund must be focused on projects in rural areas with populations of less than 150,000, Walker said the bigger cities could also receive some funding.
In San Antonio, the San Antonio Water System isn't “waiting for [the state] to come and tackle the problem for us.”
The city lost around 19 billion gallons of water in 2023 and has seen an increase over the last five years.
“We're in a state that doesn't even fund public education,” said Robert Puente, president and CEO of the San Antonio Water System. “So good luck to us getting some money from the state on these issues.”
Earlier this week, the SAWS board of trustees unanimously approved a new five-year water conservation plan.
The city of Austin lost around 7 billion gallons of water in 2023.
Austin has hired a consultant to review it's water loss practices and metrics, according to city officials. The capital city is also in the process of replacing water mains around Austin.
Walker said while Texas lawmakers should invest more money in water infrastructure, city officials also need to hire more staff and better planning to address water loss.
The one city that lost less water in 2023 was El Paso, which reported losing 475 million fewer gallons last year. Since El Paso is in the desert, water conservation and having a “watertight” infrastructure is the city's main focus, said Aide Fuentes, El Paso Wastewater Treatment Manager.
“That makes us a little bit different from the rest of Texas in that sense,” Fuentes said.
El Paso Water officials aim to reduce water loss by 10%.
Walker said the data shows that cities should make the case to state lawmakers to continue addressing water infrastructure in the next legislative session. She added this issue isn't going away.
“We really need [to] try to live with what we have and not lose the water that we already have in place and make sure that it's reaching its intended destination,” Walker said.
Disclosure: San Antonio Water System and Texas 2036 have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.
Just in: Former U.S. Rep. Liz Cheney, R-Wyoming; U.S. Sen. John Fetterman, D-Pennsylvania; and Oklahoma Gov. Kevin Stitt will take the stage at The Texas Tribune Festival, Sept. 5–7 in downtown Austin. Buy tickets today!
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The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.
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