Austin City Council member Paige Ellis has again accepted campaign contributions that appear to exceed city limits, according to recent campaign finance reports, raising questions about compliance with local election law as she seeks a third term representing Southwest Austin.
Finance
Here are your top tips for a financially healthy 2025
Everything you need to know about a financial CD before investing
What is a financial CD and how can they be beneficial investments?
The economy enters 2025 in reasonably good shape, with a low unemployment rate, modest inflation, a trend toward declining interest rates and strong corporate profit growth that has been giving the stock market a lift.
It’s thus not a bad backdrop for getting a fresh start on improving your finances. Here are some trends, issues and tips to mind in coming weeks:
Choose a savings resolution, and stick to it
New Year’s resolutions can provide the motivation to improve your financial situation in many ways, such as building up your retirement plan, reviewing your insurance policies or getting started (or updating) an estate plan.
However, the resolution most Americans are focusing on heading into 2025 is more basic: Sock more money into emergency savings. You can hold money in various forms from a money-market mutual fund to laddered bank certificates of deposit (those coming due in intervals such as every three months).
The idea is to have enough liquid cash to meet big unexpected expenses while earning at least a modest yield in the meantime.
In a Fidelity Investments survey, 72% of respondents said they suffered a notable financial setback this year, with nearly half having to dip into their emergency funds to pay for it. It’s thus no surprise that 79% of respondents hope to build up their cash reserves, 38% worry about unexpected expenses and 20% say another surprise could set them back in 2025. Women, more than men, said they didn’t have an emergency fund to dip into, but 80% of them resolved to build one in 2025.
Get relief from a consumer-friendly banking rule
A new rule that could help some of the most hard-pressed consumers is one that mandates lower overdraft fees at banks.
The federal Consumer Financial Protection Bureau in December issued a final rule that it said will cut typical overdraft fees from $35 per transaction to $5, saving an average of $225 annually for the 23 million or so households that pay such charges.
Bank critics contend the charges hit lower-income people hard.
Overdraft fees are “a form of predatory lending that exacerbates wealth disparities and racial inequalities,” said Carla Sanchez-Adams, senior attorney at the National Consumer Law Center, in a statement.
Some banks including Capital One, Citibank and Ally Bank already have eliminated these fees.
Consumer advocates hail the new rule but caution that it faces the risk of being overturned by Congress. That, they say, could come with simple majority votes in the Senate and House, with limited debate.
Get a jump on tax season, and use free filing services
The IRS is suggesting several steps that can be taken soon for people hoping to get a jump on the filing season for 2024 tax returns. These include gathering and organizing tax records, making an estimated fourth-quarter quarterly payment (if required) by Jan. 15, 2025, and opening an IRS Online Account. Income brackets, deductions and other tax aspects have changed a bit owing to inflation adjustments.
The IRS last year piloted a no-cost, easy-to-use Direct File system in 12 states.
It’s designed for taxpayers with relatively simple situations. The IRS plans to expand access this filing season to 12 more states including Pennsylvania, New Jersey, Connecticut, North Carolina and Oregon.
That sets up a potentially confusing situation where residents of roughly half the country will be eligible, while the other half won’t have access.
Keep an eye on the favorable corporate-profit trend
Baring a last-second collapse, the stock market will finish 2024 with its second consecutive annual gain of more than 20%.
Rising corporate profits or earnings have been the key catalyst, and the picture might improve in the coming year. If you’re an investor, that’s a favorable sign.
Earnings for stocks in the Standard & Poor’s 500 index likely will finish up 7.4% for the fourth quarter of 2024, compared to the fourth quarter of 2023. That’s according to Sheraz Mian, who as research director at Zacks Investment Research tracks what investment analysts forecast for the companies they follow. Earnings growth could accelerate to 10.9% in the first quarter of 2025, 12.5% in the second and 11.3% in the third, he said.
Tech stocks account for a big chunk of the profit gains, led by the “Magnificent 7” of Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla, and supported by trends including artificial intelligence, advanced computing and robotics.
Will 2025 witness a slowdown here? Not necessarily, as tech is “among the few sectors whose earnings outlook is steadily improving,” Mian said.
Give yourself a financial de-clutter check
Inflation was a big story this year and will continue to make headlines in 2025. If you’re feeling the pinch, it might be time to conduct a thorough review of your spending habits. Take a close look at the many monthly or quarterly expenses that you routinely pay without thinking much about them.
“Audit your spending habits,” suggested John Pharr, a certified public accountant in Florida. “So often we spend money mindlessly with little planning or on things that don’t serve us well.”
Auto, home and other types of insurance are a case in point. Review your coverage with an eye on making sure you have an appropriate amount of coverage and suitable deductibles. It might be time to shop around for better deals.
Other expenses that we sometimes view as “needs” really are “wants” that could be trimmed. Pharr cites subscriptions for streaming platforms, gym memberships, meal deliveries and cell phone and cable-TV services. “Sometimes rates keep rising and we just keep paying without checking into other options,” he said.
Reach the writer at russ.wiles@arizonarepublic.com.
Finance
Austin council member Paige Ellis may have violated campaign finance rules again
Austin City Council Member Paige Ellis listens to public testimony on Wednesday, Aug. 16, 2023 at City Hall. The District 8 representative, who is running for re-election this year, has previously faced scrutiny for campaign finance practices.
Under current city rules, candidates for City Council or mayor may not accept more than $450 per contributor per election. The limit applies to individual donors, with exceptions only for the candidate and small-donor political committees.
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Campaign finance reports filed in July 2025 and January 2026 show Ellis accepted nearly $2,500 in contributions that exceeded the $450 individual cap. At least 12 donors gave more than the legal limit, either through single donations above $450 or through multiple contributions across the reporting period that cumulatively exceeded the cap.
In some cases, donors made two or more contributions during the reporting period that, when combined, pushed their total giving beyond the limit. In other instances, donors appeared to list themselves both individually and jointly with a spouse or partner in ways that resulted in total contributions exceeding what is allowed.
Ellis’ campaign manager, Mykle Tomlinson, said he was aware of the $450 cap for individual contributors. Ellis and Tomlinson both said they believed married couples could contribute up to $900 combined, based on each spouse being allowed to give $450.
“As long as the couple hasn’t given over $900, it’s within the limits,” Ellis said. She added that this interpretation applies even when one spouse gives jointly and then later gives individually, calling it a “working definition” that campaigns have followed for years.
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Read More: Austin City Council members push to ease spending rules before vote
Ellis said she personally knows the donors and is aware of which contributors are married, even if both spouses’ names are not listed on campaign finance forms.
However, official guidance from both the Texas Ethics Commission and the City of Austin requires contributors to list their full name on campaign finance reports.
“If a finance report listed an amount above $450 with only one name, that would be an issue for the city’s Ethics Review Commission to review,” city spokesperson Jenny LaCoste-Caputo said in a statement Wednesday.
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Central Texas-based ethics attorney Andrew Cates called it “common sense” to list contributions under two names from a married couple to clarify that those donations come from both people, adding that the whole reporting system is in place so there is no confusion about where the money is coming from.
“If it’s combined, then say it’s combined,” he said. “It’s not that hard.”
City rules state that the candidate is responsible for filing required reports.
Campaign finance violations are reviewed by the city’s Ethics Review Commission. Ellis’ husband, Edward Espinoza, served on the commission from July 2023 through March 2025. He also previously served as Ellis’ campaign treasurer.
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Asked whether Espinoza’s service on the commission posed a conflict of interest, Tomlinson said Ellis recused herself during Espinoza’s appointment by the mayor. He added that the commission often struggled to achieve a quorum during that period and that other council members supported Espinoza’s appointment.
“It doesn’t seem like anyone thought it was a conflict of interest,” Tomlinson said.
Read More: Austin’s proposed tax hike follows behind-the-scenes budget maneuvering
This is not the first time Ellis has faced scrutiny over campaign finance practices. In 2022, the Ethics Review Commission considered a complaint alleging 56 violations related to her campaign, including accepting contributions above city limits and failing to provide required donor employment information.
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Commissioners dismissed the allegations related to donor information but found that Ellis had accepted excessive contributions. Ellis acknowledged the violations and was sanctioned with a letter of notification. She later issued refunds for the amounts in question.
In a written statement, Tomlinson said the commission “dismissed the lion’s share of complaints” and found that seven transactions — totaling about $20 — exceeded contribution limits by small amounts. Those funds were refunded and reflected in a subsequent campaign finance report, he said.
Ellis is running for re-election to a third term representing District 8. Because city rules generally limit members to two terms, she will have to collect signatures from at least 5% of eligible voters in her district to appear on the ballot.
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So far, Ellis has drawn one challenger: Selena Xie, a former Austin EMS Association president, EMS commander and ICU nurse, who announced her candidacy in July.
Voters will decide the District 8 race in the Nov. 3 election. Council districts 1, 3, 5 and 9 will also be on the ballot this November.
Finance
Fake ‘ghost students’ stealing identities and financial aid money
NEW YORK (WABC) — They’re called “ghost students” and they’re draining the resources of community colleges and stealing tax payer financial aid funds.
“You’re stealing from people who really have the least already,” said Dr. David Stout, President of Brookdale Community College in New Jersey. “It’s infuriating.”
Scammers are stealing people’s identities, often through data breaches, to apply for online college classes. Once they apply for financial aid and get the money, they disappear.
It’s a sophisticated scheme and community colleges are often targeted because of their open enrollment policies.
At Brookdale Community College, they’ve been receiving about 1,000 ghost student applications each year for the past three years.
“Knowing that there are individuals out there that are trying to steal from our community college students and individuals who are trying to steal from our community and from our taxpayers is infuriating,” said Dr. Stout.
Since the pandemic started, it wasn’t rare to have students across the country sign up for his college’s online courses. But three years ago, when one of his financial aid workers noticed a bump in enrollment, the president’s team investigated.
“So she dug a little bit deeper and found that there were seven students that all shared somewhat common credentials and it was at that point that we realized that we were the victims of ghost students,” said Dr. Stout.
“Of course I’m furious that we may have individuals who try to take advantage of the open door policies that community colleges have,” said Dr. Stout.
He said there’s no evidence that any of the fake students who applied at Brookdale received financial funds, they were discovered first. Since then, the college says it has put mechanisms in place to root out fake applicants.
Eyewitness News reached out to other colleges in the area who say they’ve also put new screening practices in place.
At the City University of New York, a spokesperson said ghost applicants make up less than 1% of its applications. In a statement, a college spokesperson said: “Thanks to our careful screening process none were accepted or provided financial aid, but we continue to strengthen our policies to reduce the number of these applications. For example, the University recently introduced CAPTCHA to screen out bots and fake applicants.”
Nassau Community College has also taken precautions.
A spokesperson said. “while we cannot disclose specific security measures, the college’s IT, financial aid, and admissions departments have been working together to protect the integrity of our admissions and financial aid processes and mitigate the risk this type of fraud poses to our institution.”
Eyewitness News partnered with ABC News to show how this is a growing problem across the country.
The Inspector General’s Office with the U.S. Department of Education says they have 200 open investigations nationwide.
“We see in some of these fraud schemes where people are enrolled in two or three different schools at the same time receiving aid at all of them,” said Jason Williams, the U.S. Dept of Education Assistant Inspector General for Investigation.
Some schools are now using special software to screen applicants.
“It takes a tremendous amount of administrative work to go through and verify that they’re fraudulent,” said Dr. Stout.
The Brookdale Community College President says they’re in contact with other colleges in the area on a continuous basis to share information and ways to prevent ghost applicants from getting enrolled.
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Finance
Graham Price, Senior Consultant, Financial Restructuring
Graham is a senior consultant in the global special situations & private credit practice, based in the Hong Kong office. Dually qualified in England & Wales and Hong Kong, Graham focuses on both finance and restructuring matters across the Asia-Pacific region. He represents private credit funds, private equity sponsors, major institutional lenders and asset managers on a wide range of finance transactions, including cross-border leveraged financings, restructurings, special situations, direct lending, margin loans, real estate finance and corporate facilities.
Prior to joining Akin, Graham worked at leading international law firms in Hong Kong and London where he also undertook a secondment to Barclays Capital.
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