An investigative report by the Office of the City Auditor has revealed that the former director of the Economic Development Department, Sylnovia Holt-Rabb, authorized grant awards that violated city code restrictions. The investigation found that four arts organizations received Live Music Fund grants despite already being awarded funding from the Cultural Arts Fund, which is prohibited under city code.
Initially, Holt-Rabb instructed staff to enforce the code provision barring overlap between the two grant programs. However, after concerns from staff and a meeting with one awardee, she reversed her decision and granted exemptions to all four organizations. The projects included a summer festival, a classical music showcase, a holiday concert, and a cultural celebration. Staff expressed discomfort with the decision, suggesting it was made to appease an upset grantee.
The city’s grant application system reportedly contributed to the issue, making it difficult to cross-reference applications and enforce compliance. Holt-Rabb defended her actions, stating she acted in good faith and consulted legal advisors. She described the ordinance language as unclear and emphasized her commitment to fairness and equity.
The auditor’s office rejected her interpretation, concluding that the exemptions violated city code and constituted improper use of public funds. Additionally, delays in paperwork from 60 Live Music Fund recipients have left over $500,000 in funding in limbo. The Economic Development Department has pledged to address the findings and improve compliance processes.
— news from Austin Monitor