Economic and Workforce Development Committee Meeting - January 27, 2026

The Economic and Workforce Development Committee of the San Antonio City Council met on January 27, 2026, at 2:05 PM. The committee approved the minutes, discussed and voted on the FY2026 Growth Stage Grant Program, received a briefing on Ready to Work target occupation updates, and established a work group to explore selling City-branded merchandise.

Consent Calendar

• Approval of Minutes: The minutes from the previous meeting were approved unanimously by voice vote.

Public Comments & Testimony

• No citizens were signed up to speak, and no public comments were made.

Discussion Items

Item 2: Recommendation of Fiscal Year 2026 Growth Stage Grant Program

• Sarah Wappel, Business Advancement Coordinator, presented the recommendation for a total program budget of $1 million, split evenly ($500,000 each) between the Second Stage Grant Program and the SBIR/STTR Matching Grant Program.
• Second Stage Grant Program: Proposed guideline changes include: reducing employee eligibility to 100 or fewer employees (full-time and part-time), increasing the wage requirement for new full-time employees from $17.15/hour to $20/hour to align with Ready to Work OJT program, and focusing on the city's five strategic industries (mobility, corporate services, bioscience, IT/security infrastructure). Maximum grant per award increased to $100,000.
• SBIR/STTR Matching Grant Program: Proposed changes include requiring an existing federal award within the last two years (to accommodate a federal pause in October 2025) and increasing the maximum phase two award to $100,000 based on company needs.
• Staff reported that from the initial Second Stage pilot (nine grantees, $450,000), six-month survey data showed four out of nine reported revenue growth, with a combined cumulative revenue growth of $7.06 million. From the SBIR/STTR pilot (11 grantees, $581,000), eight out of 11 reported revenue growth, with $3.36 million in reported revenue growth.
• Committee members raised questions and requested additional information:
  • Chair Viegra requested a memo explaining why five of nine Second Stage grantees did not report revenue growth (e.g., due to hiring, investment, or other factors).
  • Council Member Castillo asked whether any grantees left San Antonio (staff confirmed none have left) and requested data on local vs. remote employees.
  • Council Member Galvan asked for a breakdown of grantees by industry cluster and whether recapture provisions exist if a business leaves.
  • Council Member Mascarenas inquired about alignment with Ready to Work and requested a report on bioscience incentives.
• Motion to approve the FY2026 Growth Stage Grant Program as presented passed unanimously.

Item 3: Update on Target Occupations for the Ready to Work Program

• Joel Morgan, Assistant Director of Workforce Development, provided an update on the removal and focus of target occupations.
• Occupations Removed: The Ready to Work Advisory Board approved removal of nine occupations in January 2026 (compliance officers, dietitians/nutritionists, MRI techs, medical dosimetrists, natural science managers, machinists, roofers, personal financial advisors, and securities/commodities financial service agents). Combined with 11 earlier removals and two prior removals, a total of 22 occupations have been removed since inception. The remaining catalog contains 62 active occupations.
• High-Performing Occupations: Staff identified 20 occupations with job placement rates of 70% or higher within six months, including educators, manufacturing trades, construction, health care (paramedics, LVNs, RNs, rad techs). These will receive increased marketing and emphasis.
• Committee members discussed:
  • Chair Viegra suggested exploring court reporters (due to county needs), military-to-civilian transition (e.g., medics), AI-related occupations, and digital navigators.
  • Council Member Galvan requested raw numbers of jobs created per occupation/sector.
  • Council Member Castillo asked about reasons for difficulty placing IT and health care graduates; staff cited possible saturation and need for employer-aligned training.
  • Council Member Mascarenas asked for participant counts by occupation and confirmed that currently enrolled participants are unaffected by removals.
• This item was for briefing only; no action taken.

Item 4: Establish a Work Group to Explore Sales of City of San Antonio Branded Merchandise

• Alex (staff) introduced the item, referencing a background memo and showing sample merchandise (coasters, T-shirts, ties, scarves). The goal is to explore selling branded items to promote San Antonio's global visibility and generate revenue, possibly through a virtual store or licensing arrangements.
• Committee members expressed support and suggested potential participants: Office of Historic Preservation, World Heritage, Animal Care Services, Municipal Courts, Fire Department, Library, and Arts & Culture. Council Member Castillo volunteered to serve on the work group alongside Chair Viegra.
• Discussion included whether to involve business/retail experts immediately or after initial city-department exploration. The consensus was to start with the internal group and later bring in retail expertise.
• Motion to establish the work group passed unanimously.

Key Outcomes

• Approved: FY2026 Growth Stage Grant Program ($1 million total, $500,000 each for Second Stage and SBIR/STTR programs) with revised guidelines. Motion carried unanimously.
• Established: Work group (Chair Viegra and Council Member Castillo) to explore City-branded merchandise sales, with a report back to the committee before full council consideration.
• Requested Information: Staff to provide memos on: reasons for non-revenue growth among Second Stage grantees; breakdown of grantees by industry; local vs. remote employee data; participant counts by occupation; job numbers per occupation/sector; bioscience incentive report; and recapture provisions for businesses that leave.