A new city audit revealed issues with Austin's frequent use of third-party contractors, including unclear justifications and reporting on work that recently cost nearly $300 million in less than three years.

The details: Contracting with consultants is common in Austin, with most city departments reliant on some level of third-party support. The practice grew increasingly expensive in the less than three-year period covered by the March audit, with annual costs surpassing $100 million in total last year.

The audit found:

• City departments typically don't evaluate whether they could complete work internally rather than contract it out.
• Many third-party deliverables aren't measurable.
• City staff were sometimes unable to answer "basic questions" about contracts.
• Most contract results were never evaluated after work was completed.
• Poorly performing contractors were sometimes rehired for further work.

Austin Transportation and Public Works recently completed safety and transit improvements along the Martin Luther King Jr. Boulevard, Springdale Road and Heflin Lane intersection, holding a ribbon-cutting Feb. 25 to celebrate the completed improvements.

The action taken: According to TPW, the improvements include:

• Added a dedicated northbound left-turn bay on Springdale Road
• Converted Heflin Lane to right-in/right-out only to reduce conflict points
• Relocated and upgraded CapMetro bus stops
• Added raised bike lanes, restriped high-visibility crosswalks and new shared-use paths

Texas attracts dozens of company headquarters to the state annually, with at least 314 businesses moving their main office to Texas from other states between 2015-2024, data from the governor’s office shows.

Zooming in: At least 24 companies moved their headquarters to Texas in 2024, with more than half landing in the Dallas-Fort Worth region. Two companies relocated from other countries, with data center developer Hive Digital Technologies bringing its home base from Canada to San Antonio and pharmaceutical company IntraBio Inc. moving its headquarters from the United Kingdom to Austin.

How we got here: State officials and experts said Texas’ economic incentives and light regulatory environment are key reasons why companies brought their operations to the state in recent years.

“Texas wants companies to move here, and [company leaders] know that,” Megan Mauro, interim president and CEO of the Texas Association of Business, told Community Impact. “Our legislative policy is really impacted by the voices of employers here.”