City Attorney Andy Segovia has responded to Mayor Gina Ortiz Jones’ latest idea to plug San Antonio’s $158 million budget gap, saying that asking voters to redirect funds from the Ready to Work program comes with significant limitations.
The mayor made waves earlier this week when she floated the idea that ending the taxpayer-funded workforce development program early could divert up to $100 million of its collected funds to the city’s general fund.
On Thursday, the city attorney advised council members that there could be strict limits on how Ready to Work funds can be used, according to a city memo obtained by the San Antonio Report.
In the memo sent to the mayor and City Council, Segovia said Ready to Work funds are restricted under Texas’ Better Jobs Act.
State law allows the funds to be used for a specific purpose, he noted, related to developing a skilled workforce.
That includes literacy and education — the memo mentions scholarships, secondary schools and after school programs as examples. Using it for unrelated purposes, like drainage or street improvements, wouldn’t be consistent with state law, according to the memo.
Jones mentioned infrastructure improvements as a more pressing need in an interview with Texas Public Radio’s “The Source” on Monday.
In her memo to council members on Tuesday, however, the mayor only pointed to high priority projects in the city’s general fund or 2027 bond as possible landing places for the money.
Jones urged council members to consider putting the issue to voters as soon as the November ballot — and on Thursday, she didn’t seem to take Segovia’s response as a “no.”
“The City Attorney has told us that if the voters elected to, Ready to Work funds could potentially be used to pay for qualified programs currently paid for out of the general fund, services like literacy programs, afterschool programs, and early childhood education,” Jones said in an email Thursday in response to Segovia’s memo.
“Diverting Ready to Work funds for qualified programs may then free up general fund money for core services like public safety and drainage, and helps to minimize potential budget cuts and property tax increases,” she added.
Redirecting the funds would require public approval.
Ready to Work was established when 77% of voters approved the idea in the 2020 election. The program was set to run through 2030 and provided scholarships, support and training pathways for San Antonio residents looking to move into higher-paying jobs.
It endured a difficult start, though, failing to meet initial goals and coming under fire from fellow council members. Goals for job placements were revised down from 28,000 jobs by 2030 to 15,600.
Ready to Work was originally supposed to get 80% of its graduates into new jobs within six months. Today, 74% of graduates get into an approved job after 12 months.
Program officials have emphasized recent improvements. Ready to Work has nearly doubled its total number of job placements so far 2026, rising from around 3,000 total between 2023 and the end of 2025 to more than 5,700 today.
Council members reactPutting the Ready to Work decision in front of voters would require Jones to present a ballot initiative to City Council, where a majority of council members would need to approve the language by August 17.
The program still has supporters at City Hall.
“We’re seeing Ready to Work change lives,” said Councilwoman Teri Castillo (D5).
Castillo said the program is benefiting her Westside constituents, who are seeing higher incomes and better jobs after participating in the program. A public workforce development program helps attract employers to the area and helps residents leave poverty, she added.
Castillo said she considers Ready to Work the best use of those funds.
Councilwoman Sukh Kaur (D1) agreed, adding that she’s seen improvements since the program’s difficult start. The long-term benefits from increasing incomes is worth the investment, she said Thursday.
“Doing a large scale workforce development program that’s not focused on one industry … it’s a lot of work,” Kaur said. “There’s a lot that needed to be worked out — and they have worked it out and are working it out.”
Other council members have been less supportive of the program. Councilman Marc Whyte (D10), one of the council’s two conservatives, quickly endorsed Jones’ idea to end the program early and redirecting funds to other critical programs.
The other, Councilwoman Misty Spears (D9), agreed, saying: “The Mayor and I may disagree on where these tax dollars should go, but I have no problem ending government programs that cost taxpayers hundreds of millions and fail to deliver the results they promised.”
Other council members have at least signaled an openness to thoroughly discussing the issue.
“I don’t mind the tough conversation,” Councilwoman Marina Alderete Gavito (D7) said in a statement. “It’s essential that we bring in the proper stakeholders and, just as importantly, look at the success and opportunities before a decision is made to phase it out.”