Nonprofits contracted by the city often failed to provide agreed upon services or results, while Austin generally paid their expenses in full regardless of whether performance targets were met, a new internal audit found.

The details: Austin officials stressed those findings may not apply to all local organizations contracted for family and social services, on which the city spent roughly $100 million annually, and instead reflect faults with government oversight. City management agreed to process reforms that are now in the works.

The audit tracked nonprofits' outputs, or service delivery results, as well as outcomes, or the impact of services provided. Less than one-fourth of the sampled nonprofits met all city performance expectations.

Out of more than 151 specific output and outcome goals in their contracts, more than 44% underperformed. Most of those unmet targets had "significant deviations" between expected results and what was provided.

Hyperreal Film Club was founded by Jenni Kaye, David McMichael and Tanner Hadfield in 2016, starting with pop up events around Austin, according to its website. The club has been at its permanent location in East Austin since 2024, offering movies Monday-Friday.

"Hyperreal Film Club started out in 2016 as a basement screening for wide-eyed, wild-eyed dreamers and movie pals ... and that's what it still is as we kick off decade number two,” co-founder David McMichael said.

What they offer: The club screens multiple movies a week in a range of genres. Its recent lineup has included “Romy and Michele's High School Reunion” and “Akira.”
Hyperreal Film Club offers sliding scale ticket prices, popcorn and beverages.

The celebration: Hyperreal Film Club is celebrating its milestone anniversary with a "Matrix" Rave on July 24, featuring a costume contest, music, prizes and drink specials. Tickets are available online.

Dallas-native bagel shop, Shug’s Bagels, is still coming soon to Austin, despite continued delays. 

Shug’s initially notified Austinites of its plans to open a location on North Lamar and Parkway in August 2024. Due to delays with paperwork and filings, the shop is looking forward to a late summer opening date at the earliest, its team shared on social media. 

The backstory: Shug’s, known for its stacked breakfast and lunch sandwiches, initially launched in Dallas in 2018. Led by owner and founder Justin Shugrue, the spot soon expanded to include additional locations in Dallas and New Orleans. 

On the menu: Shug’s sells customizable bagels, breakfast and lunch classics and bagels by the bag. Customers can choose from plain, everything, french toast, blueberry and jalapeño cheddar bagels. 

What we know: In a recent update shared on Instagram, the team announced that Shug’s Bagels won’t be open until August 2026 or later. The business does not currently have an opening date, and is waiting for final approvals and paperwork. 

• 1206 Parkway, Austin

Austin ISD will fully operate Burnet, Dobie and Webb middle schools this fall after the district and the Texas Council for International Studies mutually agreed to end their management partnership, which officially concludes July 31.

Why it matters: The split comes after the Texas Education Agency declined to grant the partnership state benefits in late May—and with all three campuses carrying four consecutive F ratings, this fall's accountability scores could determine whether the state intervenes. District officials say early testing gains and turnaround investments will continue.

What's next: The 2026 accountability ratings, expected in August, will show whether the campuses broke their streak of failing scores. A fifth consecutive F at any campus would require the TEA commissioner to close it or take over the district. Preliminary data offers some hope: 100% of students tested at Burnet and Dobie passed the Algebra I state assessment, per the district.

Check out the latest transportation project updates across the Austin metro. 

Ongoing projects

Burnet Road Mobility Program
Project: The project will feature updated traffic signals, improved crossings, bus stop improvements, trail connections, drainage improvements, shared-use paths and more on Burnet Road from White Horse Trail to US 183 (C2), Bright Verde Way to MoPac (C3) and US 183 to Bright Verde Way (C4).
Update: According to Austin Transportation and Public Works officials, all three segments are officially under construction as of early June. 

• Timeline: 2026-28
• Cost: $64 million
• Funding source: 2016 Mobility Bond

• Timeline: March 2023-early 2029
• Cost: $606 million
• Funding source: funded by Capital Area Metropolitan Planning Organization and the Texas Department of Transportation

Gov. Greg Abbott named Robert S. Howden, one of his senior advisers and his office's legislative director, as Texas' 116th secretary of state effective July 18. Howden will succeed Secretary of State Jane Nelson, who resigned effective July 17 more than three years after she took office.

As the state's chief elections officer, Howden will be responsible for overseeing the application of Texas election laws and assisting local election officials. The secretary of state's office also manages business records, government rules and regulations, and other official duties.

Following Abbott's appointment, Howden must be confirmed for the position by at least two-thirds of the Texas Senate. The state Legislature's next regular session will begin in January.