Austin News

After finally disclosing the base rent it will pay to lease its office space in downtown Austin, the Teacher Retirement System of Texas (TRS) has declined to provide full details surrounding the costs tied to the lease.

Many lawmakers and retired teachers were "shocked" to learn that the state agency is set to fork out approximately $326,000 per month in base rent to Indeed Tower, the Austin American-Statesman reported. The partial cost became public seven months after the Austin American-Statesman asked TRS to provide details of the lease, which the state agency was reluctant to disclose.

Leases usually have a base rate and an additional amount to cover operating expenses like property taxes and maintenance of shared amenities.

TRS revealed the base rates on Jan. 17, after receiving a formal request for a copy of the lease from the journal under the Texas Public Information Act.

The 10-year lease is for 100,000 square feet in the upscale building with a base rate beginning at $38.50 per square foot. That amount will increase steadily to $45.25 per square foot in the last year of occupancy, meaning the base rate will range from $3.9 million to $4.6 million per year for the duration of the lease.

Initially, TRS tried to keep the spending information private through a loophole in the Open Records law, which gave government agencies permission to withhold certain details on how tax dollars were spent with outside contractors. However, a new law, Senate Bill 943, took effect Jan. 1 and made it harder for state agencies to keep spending information private.

In an effort to avoid releasing further details on the full costs associated with the lease, TRS has sought a ruling from Attorney General Ken Paxton on whether the agency is required to disclose the details to the public, all while claiming to be committed to transparency.

Full details should remain private, TRS argues, because the state agency needs to “protect any information which may be confidential by law and to provide an opportunity for third parties to make arguments in support of withholding information based on statutory exceptions,” the Austin American-Statesman reported.

TRS is tasked with overseeing retirement benefits for roughly 1.6 million active and retired teachers and school staff.