Iconic Austin business owners voice opposition to Prop A

For years, Esther's Follies has given a lot of people something to laugh about, but the small theater went dark in March because of the pandemic.

“When I heard about this, especially the timing, I had to say something,” said Jack Gilmore with Jack Allen’s Kitchen/Salt Trader’s Coastal Cooking.

On Monday, Gilmore was with a group of iconic Austin business owners who took the stage at Esther’s Follies to voice opposition to Proposition A.

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“I find that thing the City Council and the people that back them up are so fiscally irresponsible that it defies the imagination,” said David Kruger with Kruger’s Jewelers.

Proposition A is a tax increase to fund CapMetro's $7 billion transportation plan called Project Connect. A double-digit property tax rate hike, planners say, is needed to pay for the comprehensive system. The money would be used to build new rapid bus routes, a network of commuter and light rail lines as well as an underground downtown transfer hub for passengers.

RELATED: Austin city staff recommends $7.1 billion investment into Project Connect

Supporters of Prop A have consistently said the tax increase for a typical homeowner on their annual tax bill is going to be around $300. But for small business owners, the increase is much more significant.

Travis County Commissioner Gerald  Daugherty did some number crunching. “It will be the final nail in a lot of people’s coffin, I’m convinced of that," he said.

RELATED: Austin City Council, CapMetro create Austin Transit Partnership to implement Project Connect

Here is the list of some notable names and tax hike estimates, according to the commissioner.

  • $1000 more for Juan in A Million
  • $1500 increase for Dirty Martin’s
  • $1600 increase for Amy’s Ice Cream on Burnet Road
  • $3200 increase for Home Slice on 53rd Street
  • $3,000 increase for Esther’s Follies

“We are are not open, we are not going to be open for a long time so no money coming in paying an extra $3000,” said Shannon Sedwick with Esther's Follies.

RELATED: Project Connect transit plan one step closer to becoming reality

The group also took exception to the claim that the tax rate increase for a homeowner, when spread out over a year, is manageable.

 “$300 for those individuals in the low income, in the areas, rentals, or maybe a little house, $300 is a lot of money. It may not be to someone who is making $70-$100,000 a year, but there’s someone making $30,000, who happens to be on the front line and maybe getting sick from this pandemic, $300 is a lot of money," Voices of Austin chairperson Gonzalo Barrientos said. "It could pay for a doctor, or a hospital, they could pay for a little bit of this kid that they want to send to college, so never say that $300 is not a big deal, vote no on Prop A."

RELATED: CapMetro's Project Connect at the center of debate

On Tuesday, a group led by the Austin Justice Coalition and Workers Defense will hold a news conference in support of Prop A. The organizers claim the transit plan will help address  Austin‘s history of racial inequity.

TO LEARN MORE ABOUT PROJECT CONNECT, CLICK HERE