Texas
How Texas taxpayers are already paying the price of bad politics
In November 2023, Texas voters approved tens of billions of dollars in new bonds for school districts, cities, counties, special districts and other local governments. Proceeds from these bond sales will be used to construct and maintain schools, parks, roads, utilities and other infrastructure projects.
Voters approved these borrowings with the understanding they will incur substantial interest costs. But would they if they were aware that a portion of the interest costs will be for no purpose other than to make a purely political statement? In fact, that is how a substantial share of the interest payments — hundreds of millions of dollars — will be used.
In 2021 the Texas Legislature passed, and the governor signed, SB 13 and SB 19 that prohibit Texas state and local governments from entering into contracts with banks that have policies restricting investments in oil and gas as well as firearms companies. The measures, targeted mainly at Texas pension funds, were intended to prevent the funds from investing in financial institutions that directly or indirectly support the anti-fossil fuel or anti-gun movements.
Unfortunately, Texas school districts, counties, towns and utility districts must also contract with these same financial institutions when they issue debt. Hence, they (and their taxpayers) are collateral damage of the legislation.
How so? When governments issue bonds they must rely on financial institutions to provide underwriting services. An underwriter purchases bonds directly from the issuer and resells them to investors. The municipal underwriting business is competitive, with scores of companies seeking the business of Texas governments. Not surprisingly, the larger, more well-established firms often have an advantage over smaller, more regional firms.
Owing to their size, they may not only be more efficient in performing the services expected of them, but also their national distribution networks are better able to market the bonds to investors. The result is that the larger firms can often enable the issuing governments to save on interest costs.
Ironically, these larger firms, such as Citigroup, JP Morgan Chase, Goldman Sachs, Bank of America and UBS, are the ones that have landed on the Texas comptroller’s list of ousted underwriters. As could have been anticipated, empirical evidence indicates that Texas governments did, indeed, pay a significant price for banishing them. A study by two economists, one from the Wharton School, the other from the Federal Reserve Bank of Chicago, estimated that based on $31.8 billion of bonds issued in 2022, Texas governments incurred between $300 million to $500 million of additional interest costs as a result of SB 13 and SB 19.
Even if one disputes the study’s interest cost estimate, most economists agree that providing governments with a choice among fewer financial institutions undermines the benefits of market competition. Ironically, in a different political environment, Republicans such as Gov. Greg Abbott and most of the Texas legislators who championed this legislation would likely be among the loudest opponents of this anti-competitive legislation.
Within the last several weeks Citigroup announced it was exiting the municipal bond underwriting business entirely. Experts believe other investment banks may follow. Policies of both Texas and other GOP-led governments on fossil fuels and guns are among the reasons cited. To be both fair and politically neutral, it should be noted that the problem of using the financial markets to make political statements is not confined to Republican governments. On the other end of the political spectrum, Chicago has restricted contracts with institutions on the “wrong side” of issues relating to prior ownership of slaves and gun control.
Oil and natural gas companies employ almost 350,000 Texans. Hence, it would make perfect sense for our Legislature to protect and promote that industry. However, there is no evidence these firms have received anything of economic value from the Texas legislation. It seems reasonable to suspect executives of Texas oil and gas related companies check their computers daily for the international price of oil, not the investment portfolios of municipal bond underwriters. The latter have no demonstrable impact on their firms’ investment or employment decisions.
The benefits of any legislation should exceed its costs. To be sure, it is not unusual for governments to enact measures to ensure that contractors advance beneficial non-economic social goals. For example, they may mandate that contracts give preference to minority-owned or disadvantaged businesses. But in SB 13 and SB 19 we have laws that produce only costs, no benefits other than misguided anti-woke darts.
Texas growth will require substantial amounts of new investment in infrastructure. That means increased borrowing. To protect taxpayers by minimizing borrowing costs, we need more competition among bond underwriters, not less. Taxpayers should not have to pay for empty political gestures. But if they must, let’s at least be honest and tell them what they are voting for when they go to the polls.
Michael Granof is the EY Professor of Accounting Emeritus at the University of Texas at Austin. Martin J. Luby is an associate professor at the LBJ School of Public Affairs at the University of Texas at Austin.
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Texas
3 things to watch as Texas, Texas Tech begin Women's College World Series Final
No. 1 seed Texas (51-12, 16-8 in SEC play) and No. 3 seed Texas Tech (61-8, 21-3 in the Big 12) begin their three-game series at 8 p.m. ET Wednesday in Oklahoma City. Each
Texas
Brazoria County deputy shoots, kills Texas State University student after car chase, report says
BRAZORIA COUNTY, Texas – A Texas State University student was shot and killed by a Brazoria County Sheriff’s deputy early Monday morning after an attempted traffic stop in Lake Jackson.
The news was first reported by The University Star, Texas State’s student-run newspaper.
In a Tuesday statement to KSAT, the university identified the student as John Gabriel Mendoza Jr., 18. He was a freshman who studied management, according to the school.
“We extend our heartfelt condolences to his family, friends, classmates, and all those affected by this tragedy,” the university said in its statement.
Deputies attempted a traffic stop on a vehicle just after midnight Monday near Farm-to-Market 2004 and This Way Street in Lake Jackson, the sheriff’s office said.
The driver of the vehicle, who was identified as Mendoza by The University Star, did not stop, deputies said. The deputies then chased after the vehicle for approximately a mile into a neighborhood located in the 100 block of Indian Warrior Trail.
According to the sheriff’s office, the driver went inside a home’s garage and parked before a deputy approached the vehicle, the release said.
The deputy then pulled out his firearm and shot into the vehicle. The sheriff’s office said the gunfire struck the driver.
The University Star reported that Mendoza was the one shot. He was taken to a hospital, where he was later pronounced dead.
The deputy who pulled the trigger has since been placed on administrative leave in accordance with the Brazoria County Sheriff’s Office policy.
KSAT reached out to the Lake Jackson Police Department and the Brazoria County Sheriff’s Office for more information, but neither agency has responded at this time.
The shooting investigation is being led by the Texas Rangers, according to a Brazoria County Sheriff’s Office news release.
This is a developing story. Check back for updates.
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Copyright 2026 by KSAT – All rights reserved.
Texas
Women’s College World Series championship series set: Texas to rematch Texas Tech
OKLAHOMA CITY — Texas and Texas Tech will meet in the championship series of the Women’s College World Series in back-to-back years after both teams won semifinal matchups on a scorcher of a day at Devon Park that saw the maximum four games with two “if necessary” showdowns.
Texas has won six elimination games in the NCAA Tournament so far, including two on Monday, to reach its fourth championship series in five years and its third straight. The Longhorns and Red Raiders became the 11th and 12th teams in WCWS history to lose their opener and then reach the finals. This is the first matchup of teams to do that since 2021, when FSU and Oklahoma accomplished the feat.
The Red Raiders return to the championship series after knocking out No. 1 overall seed Alabama, marking their second consecutive appearance in the finals. Kaitlyn Terry and NiJaree Canady worked in tandem in the circle in Game 1 to keep the bats of Alabama’s potent offense relatively quiet, but Canady took it to another level in Game 2, throwing a complete-game shutout. She now has a shutout in each of her four appearances in the WCWS.
“I’m just excited to be able to make it to the championship series again,” Canady said on facing Texas in back-to-back championships. “It’s just a blessing to play them again. It’s good for the state of Texas, showing how good softball is in the state, and I feel like we’re going to get a good turnout.”
“Just so proud of my girls,” Texas Tech coach Gerry Glasco said. “They really bought in in the last — I feel like the last 30 days that we just have come together and became a whole different team, and they’re just playing for each other so well now.”
As per usual for the Red Raiders’ stacked lineup, it was a runs-by-committee kind of day, with RBIs from five players: Lauren Allred, Terry, Jasmyn Burns, Taylor Pannell — who both homered — and Mia Williams, whose walk-off in Game 1 kept the Red Raiders’ chances alive. Burns was the sole provider of the offense in Game 2 with a solo home run, her second in as many days. That was all Texas Tech needed to shut out the Tide, though another run scored on an error in the top of the seventh allowed Mihyia Davis to add some insurance.
Alabama’s Jocelyn Briski had been dominant the entire WCWS up until Monday’s first matchup, where she just couldn’t seem to find the zone. She had more control in Game 2, but the Tide’s offense couldn’t figure out Canady despite seeing her in the first game.
NiJaree Canady blanked the Crimson Tide in Game 2 for her fourth WCWS shutout. (Nathan J. Fish / USA Today Network via Imagn Images)
“The key today was one inning at a time,” Glasco said. “Play one inning at a time. Even break it down one pitch and go through. Don’t think about 14. Think get the next out, get to the next out, get to the next inning.
“We know that against a great team like Alabama, there’s going to be moments — I told her (Canady) before, you’re going to lose momentum at some point. You’re going to face adversity, and when you do, we’re going to respond really quickly and get it right back in our dugout.
“That adversity happened at the top of the seventh. Just like Oklahoma last year, we lost the lead. Let’s win it in the bottom here. Let’s not mess around and go eight. Let’s get it right now. It took one batter. They’re just really a resilient bunch of young women.”
The Longhorns likewise won both of the necessary games to advance and keep their hopes for a repeat title alive. Teagan Kavan struck out 10 batters — a new career high in OKC — and allowed just two hits in a complete-game shutout, the fifth of her career on this stage, to surpass Texas legend and Olympian Cat Osterman. Tennessee, which defeated Texas on Thursday to open up play at Devon Park, needed just one win to advance, but its offense was shut down by Kavan and Game 1 starter Citlaly Gutierrez, who took a no-hitter into the fourth inning.
Tennessee, undefeated in the NCAA Tournament until this point, had hit a home run in every contest but couldn’t find a rhythm in either game. For Texas, Katie Stewart led the way at the plate, launching her second and third home runs in 24 hours despite an uncharacteristic three errors in the field. Her second home run of the day was her 30th of the season, a Texas program record that also made her the fourth player in Division I this season to surpass the 30-homer mark.
Katie Stewart hit a solo home run in the fifth inning of Game 1 against Tennessee to help Texas advance to the championship series. (Brett Rojo / Imagn Images)
“It’s what coach (Mike) White has put in us all season, just fighting back from losses,” senior catcher Reese Atwood said. “When we came out of the loser’s bracket after the first game, we fought so hard. We’ve had so many key players step up in different places, different roles, and it’s Texas fight. It’s what we do, and we’re going to continue to do going into the championship.”
Texas and Texas Tech have not faced each other so far in 2026, but the Longhorns have historically owned the in-state rivalry with a 58-12 record against the Red Raiders.
Last season, Texas Tech made program history with its first WCWS ticket punched, then came within one game of taking home its first title in a three-game battle against Texas. In the 2025 tournament, Texas and Texas Tech went through the winner’s bracket before facing each other; the first two games of the championship were pitchers’ duels until Texas’ offense exploded in Game 3 to take home the program’s first championship.
Notably, the college careers of Tennessee ace Karlyn Pickens and Alabama seniors Alexis Pupillo and Marlie Giles came to an end. Pickens has made an indelible mark on the sport and leaves behind the record for the fastest pitch recorded in college softball at 79.4 mph. After being drafted No. 1 in the AUSL Draft, Pickens will play professionally with the Carolina Blaze.
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