City attorney says Texas law may limit San Antonio plan to redirect Ready to Work money

San Antonio’s proposal to wind down new enrollment in the Ready to Work program and redirect as much as $100 million is facing a legal complication: City Attorney Andy Segovia says Texas law may restrict how the money can be used.

The proposal comes as city projections show a potential $158 million budget shortfall. Mayor Gina Ortiz Jones has asked City Council to consider stopping new applications after a council-approved date while protecting people already enrolled.

Any redirection would also require voter approval, and the remaining money may not be available for any city priority. A memo from Segovia says Ready to Work funds are restricted under Texas’ Better Jobs Act to purposes connected to workforce development.

What the mayor proposed

Jones has asked City Council to consider putting the issue before voters. Under her preliminary plan, Ready to Work would stop accepting new applicants after a date set by the council and begin winding down. The mayor has said current participants should continue receiving services without disruption.

The proposed redirection could help address San Antonio’s projected budget gap or expand borrowing capacity for future infrastructure projects, according to local reporting on the mayor’s plan. KSAT reported that Ready to Work had collected more than $235 million in sales-tax revenue and spent nearly $112 million, based on financial information posted by the program.

The city’s official Ready to Work page describes the initiative as a $200 million education and job-placement program funded through a dedicated one-eighth-cent sales tax. It supports training and job pathways in fields including health care, education, construction, manufacturing, information technology and transportation.

Why the money may be restricted

According to the city attorney’s memo summarized by Texas Public Radio, the Better Jobs Act allows the funds to be used for purposes related to developing a skilled workforce.

The memo identifies literacy and education, scholarships, secondary-school programs and after-school programs as examples of potentially eligible uses. Jones has said qualified programs now paid from the city’s general fund, such as literacy, after-school and early childhood education programs, could potentially be supported with Ready to Work money if voters approve a change.

That distinction matters because unrelated uses, such as drainage, street improvements or general city expenses, could be inconsistent with the law. Segovia’s memo is not a court ruling or a final determination that the funds cannot be redirected. It signals that any new use would need to fit the legal restrictions or receive additional authorization.

Why voters must decide

San Antonio voters approved the Ready to Work ballot initiative on November 3, 2020. The city resolution establishing the program’s advisory board says the initiative was created under Chapter 379A of the Texas Local Government Code, known as the Better Jobs Act, to provide workforce-development training and higher education.

The city’s official program page says the initiative is funded by a one-eighth-cent sales tax. Because voters approved the dedicated tax and its workforce-development purpose, changing that purpose would require another public vote. City Council would first have to approve ballot language before the measure could advance.

What happens next

Texas Public Radio reported that a majority of City Council members would need to approve ballot language by August 17, 2026, for the issue to move toward a November ballot. That is a reported process timeline, not a final decision about the program, the funds or the election.

For current participants, the mayor’s stated intent is to avoid disrupting existing services. For prospective applicants, the key question is whether council approves an early cutoff for new enrollment. Residents should also watch whether proposed replacement uses remain tied to workforce development and whether voters authorize any change in purpose.

Sources

• Texas Public Radio: City attorney suggests mayor’s plan to end Ready to Work early may run afoul of state law
• KSAT 12: Future of Ready to Work program in question amid projected $158M budget deficit
• City of San Antonio Resolution 2020-12-17-0056R
• City of San Antonio: San Antonio Ready to Work