San Antonio city leaders have approved their priorities for the upcoming state legislative session, including defending the city’s publicly owned utilities while seeking state support for the downtown Sports and Entertainment District, known as Project Marvel, alongside major infrastructure projects.
City Council approved its legislative agenda Thursday without discussion as part of its consent agenda, ahead of the 90th Texas Legislature’s opening on Jan. 12, 2027.
The agenda outlines four major priorities: preserving the city’s municipally owned utilities, supporting legislation and funding opportunities for Project Marvel, securing funding for flood infrastructure and advancing the proposed South Texas Parkway.
Preserving municipal utilities
Among the city’s most immediate concerns is a proposal from Gov. Greg Abbott to open San Antonio’s electricity market to private competition, a move that could threaten a major source of revenue for the city as it faces ongoing budget challenges.
Abbott announced the proposal in August, arguing that allowing customers to choose their electricity providers would lower utility bills and prevent cities from using revenue generated by publicly owned utilities to fund unrelated municipal services.
CPS Energy, which is owned by the city, transfers up to 14% of its gross revenue to San Antonio’s general fund.
The utility is budgeted to contribute approximately $559.7 million to the city in fiscal year 2027, making it one of San Antonio’s largest sources of revenue.
City and CPS Energy officials have defended the publicly owned utility model, arguing that it keeps electricity rates affordable while ensuring revenue generated by the utility stays in the community rather than going to private investors.
The city’s legislative agenda calls for preserving local ownership and governance of both CPS Energy and the San Antonio Water System while opposing legislation that would undermine their financial sustainability or reduce the city’s return on investment.
The proposal comes as San Antonio continues to navigate financial challenges after approving its fiscal year 2027 budget in September, which included approximately $90 million in spending reductions over two years, increased city fees and the city’s first property tax increase in more than three decades to address a projected $158 million budget shortfall.
Downtown development and infrastructure
Beyond protecting its utilities, San Antonio is seeking state support for Project Marvel, the proposed downtown sports and entertainment district that includes plans for a new Spurs arena and surrounding mixed-use development.
The legislative agenda calls for funding opportunities and “innovative” financing mechanisms to facilitate the transformation of the district, which city officials hope could expand tourism, create jobs and encourage additional infrastructure investment.
The inclusion of the project as a legislative priority comes after city officials presented updated plans Wednesday that include an $850 million expansion of the Henry B. González Convention Center and $125 million in improvements to the Alamodome, both part of the larger downtown redevelopment effort.
The city is also exploring transportation improvements throughout the district, including roadway upgrades and pedestrian infrastructure, with officials anticipating that the Texas Department of Transportation could cover approximately 80% of those costs.
Another priority is flood mitigation infrastructure, seeking state funding to modernize aging infrastructure and strengthen protections against severe weather in San Antonio and Bexar County, part of an area known as Flash Flood Alley.
Those efforts include investments in flood mapping, forecasting, early warning systems and emergency communications to better protect residents and infrastructure.
Another major priority is the proposed South Texas Parkway, a multilane transportation corridor that would connect Interstate 35 and Interstate 37 between Loop 410 and Loop 1604.
City documents say the project would reduce congestion, improve mobility and support major manufacturing employers while accommodating continued growth in the region.
Public safety and other priorities
Beyond those main priorities, the city’s legislative agenda outlines broader positions on public safety, housing, economic development, military installations and local governance.
Among its public safety priorities, San Antonio is seeking increased state funding for violent and nonviolent crime prevention, behavioral health infrastructure, mental health services, substance abuse treatment and the creation of a centralized diversion and recovery system.
The push for a centralized diversion and recovery system comes as San Antonio, Bexar County and University Health continue working toward developing a regional diversion center aimed at connecting people experiencing behavioral health crises with treatment and support services rather than incarceration.
The city is also seeking state support for housing affordability and homelessness initiatives, early-childhood education, workforce development and programs that strengthen Joint Base San Antonio and other military installations.
The legislative agenda also emphasizes preserving local decision-making authority, including the city’s control over zoning, land use and development regulations. The city also plans to oppose legislation that restricts its ability to generate revenue, manage its finances or issue debt, as well as measures that could undermine San Antonio’s nondiscrimination ordinance.
The legislative program will guide city staff and consultants as they review proposed bills, advocate for funding and work with state lawmakers during the upcoming session.
Texas lawmakers can begin prefiling legislation Nov. 9, ahead of the Legislature’s opening in January.
This story first appeared in the San Antonio Report.