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Why Kerr County balked on a new flood warning system
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In the week after the tragic July 4 flooding in Kerr County, several officials have blamed taxpayer pressure as the reason flood warning sirens were never installed along the Guadalupe River.
“The public reeled at the cost,” Kerr County Judge Rob Kelly told reporters one day after the rain pushed Guadalupe River levels more than 32 feet, resulting in nearly 100 deaths in the county, as of Thursday.
Credit:
Ronaldo Bolaños/The Texas Tribune
A community that overwhelmingly voted for President Donald Trump in 2016, 2020 and 2024, Kerr County constructed an economic engine on the allure of the Guadalupe River. Government leaders acknowledged the need for more disaster mitigation, including a $1 million flood warning system that would better alert the public to emergencies, to sustain that growth, but they were hamstrung by a small and tightfisted tax base.
An examination of transcripts since 2016 from Kerr County’s governing body, the commissioners court, offers a peek into a small Texas county paralyzed by two competing interests: to make one of the country’s most dangerous region for flash flooding safer and to heed to near constant calls from constituents to reduce property taxes and government waste.
“This is a pretty conservative county,” said former Kerr County Judge Tom Pollard, 86. “Politically, of course, and financially as well.”
County zeroes in on river safety in 2016
Cary Burgess, a local meteorologist whose weather reports can be found in the Kerrville Daily Times or heard on Hill Country radio stations, has noticed the construction all along the Guadalupe for the better part of the last decade.
More Texans and out-of-state residents have been discovering the river’s pristine waters lined with bald cypress trees, a long-time draw for camping, hiking and kayaking, and they have been coming in droves to build more homes and businesses along the water’s edge. If any of the newcomers were familiar with the last deadly flood in 1987 that killed 10 evacuating teenagers, they found the river’s threat easy to dismiss.
“They’ve been building up and building up and building up and doing more and more projects along the river that were getting dangerous,” Burgess recalls. “And people are building on this river, my gosh, they don’t even know what this river’s capable of.”
By the time the 1987 flood hit, the county had grown to about 35,000 people. Today, there are about 53,000 people living in Kerr County.
In 2016, Kerr County commissioners already knew they were getting outpaced by neighboring, rapidly growing counties on installing better flood warning systems and were looking for ways to pull ahead.
During a camp evacuation ahead of rising floodwaters, a Seagoville Road Baptist Church bus was swept into the Guadalupe River near the town of Comfort during the July 17, 1987 flood. Forty three people — four adults and 39 teenagers — were washed into the river. Ten teenagers died.
Credit:
The National Weather Service
During a March 28 meeting that year, they said as much.
“Even though this is probably one of the highest flood-prone regions in the entire state where a lot of people are involved, their systems are state of the art,” Commissioner Tom Moser said then. He discussed how other counties like Comal had moved to sirens and more modern flood warning systems.
“And the current one that we have, it will give – all it does is flashing light,” explained W.B. “Dub” Thomas, the county’s emergency management coordinator. “I mean all – that’s all you get at river crossings or wherever they’re located at.”
Kerr County already had signed on with a company that allowed its residents to opt in and get a CodeRED alert about dangerous weather conditions. But Thomas urged the commissioners court to strive for something more. Cell service along the headwaters of the Guadalupe near Hunt was spotty in the western half of Kerr County, making a redundant system of alerts even more necessary.
“I think we need a system that can be operated or controlled by a centralized location where – whether it’s the Sheriff’s communication personnel, myself or whatever, and it’s just a redundant system that will complement what we currently have,” Thomas said that year.
By the next year, officials had sent off its application for a $731,413 grant to FEMA to help bring $976,000 worth of flood warning upgrades, including 10 high water detection systems without flashers, 20 gauges, possible outdoor sirens, and more.
“The purpose of this project is to provide Kerr County with a flood warning system,” the county wrote in its application. “The System will be utilized for mass notification to citizens about high water levels and flooding conditions throughout Kerr County.”
But the Texas Division of Emergency Management, which oversees billions of FEMA dollars designed to prevent disasters, denied the application because they didn’t have a current hazard mitigation plan. They resubmitted it, news outlets reported, but by then, priority was given to counties that had suffered damage from Hurricane Harvey.
Political skepticism about a windfall
All that concern about warning systems seemed to fade over the next five years, as the political atmosphere throughout the county became more polarized and COVID fatigue frayed local residents’ nerves.
In 2021, Kerr County was awarded a $10.2 million windfall from the American Rescue Plan Act, or ARPA, which Congress passed that same year to support local governments impacted by the pandemic. Cities and counties were given flexibility to use the money on a variety of expenses, including those related to storm-related infrastructure. Corpus Christi, for example, allocated $15 million of its ARPA funding to “rehabilitate and/or replace aging storm water infrastructure.” Waco’s McLennan County spent $868,000 on low water crossings.
Kerr County did not opt for ARPA to fund flood warning systems despite commissioners discussing such projects nearly two dozen times since 2016. In fact, a survey sent to residents about ARPA spending showed that 42% of the 180 responses wanted to reject the $10 million bonus altogether, largely on political grounds.
“I’m here to ask this court today to send this money back to the Biden administration, which I consider to be the most criminal treasonous communist government ever to hold the White House,” one resident told commissioners in April 2022, fearing strings were attached to the money.
“We don’t want to be bought by the federal government, thank you very much,” another resident told commissioners. “We’d like the federal government to stay out of Kerr County and their money.”
When it was all said and done, the county approved $7 million in ARPA dollars on a public safety radio communications system for the sheriff’s department and county fire services to meet the community’s needs for the next 10 years, although earlier estimates put that contract at $5 million. Another $1 million went to sheriff’s employees in the form of stipends and raises, and just over $600,000 went towards additional county positions. A new walking path was also created with the ARPA money.
While much has been made of the ARPA spending, it’s not clear if residents or the commissioners understood at the time they could have applied the funds to a warning system. Current Kerr County Judge Rob Kelly, and Thomas have declined repeated requests for interviews. Moser, who is no longer a commissioner, did not immediately respond to a Texas Tribune interview request.
Many Kerr County residents, including those who don’t normally follow every cog-turn of government proceedings, have now been poring over the county commissioners meetings this week including Ingram City Council member Raymond Howard. They’ve been digging into ARPA spending and other ways that the county missed opportunities to procure $1 million to implement the warning system commissioners wanted almost 10 years ago, and to prevent the devastating death toll from this week.
A week ago, Howard spent the early morning hours of July 4 knocking on neighbors’ doors to alert them to the flooding after he himself ignored the first two phone alerts on his phone in the middle of the night.
In the week since, the more he’s learned about Kerr County’s county inaction on a flood warning system, the angrier he has become.
“Well, they were obviously thinking about it because they brought it up 20 times since 2016 and never did anything on it,” Howard said, adding that he never thought to ask the city to install sirens previously because he didn’t realize the need for it. “I’m pretty pissed about that.”
Harvey Hilderbran, the former Texas House representative for Kerr County, said what he is watching play out in the community this week is what he’s seen for years in Texas: A disaster hits. There’s a rush to find out who’s accountable. Then outrage pushes officials to shore up deficiencies.
It’s not that Kerr County was dead set against making the area safer, Hilderbran said. Finding a way to pay for it is always where better ideas run aground, especially with a taxbase and leadership as fiscally conservative as Kerr’s.
“Generally everybody’s for doing something until it gets down to the details paying for it,” Hilderbran said. “It’s not like people don’t think about it … I know it’s an issue on their minds and something needs to be done.”
Howard, the 62-year-old Ingram city council member, came to Kerr County years ago to care for an ailing mother. Although he has now been diagnosed with stage four cancer, he said he intends to devote his life to make sure that his small two-mile town north of Kerrville has a warning system and he already knows where he’s going to put it.
“We’re going to get one, put it up on top of the tower behind the volunteer fire department,” he said. “It’s the thing I could do even if it’s the last thing I do …to help secure safety for the future.”
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Goldman Sachs autonomous coder pilot marks major AI milestone
A screen displays the the company logo for Goldman Sachs on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 7, 2025.
Brendan McDermid | Reuters
The newest hire at Goldman Sachs isn’t human.
The bank is testing an autonomous software engineer from artificial intelligence startup Cognition that is expected to soon join the ranks of the firm’s 12,000 human developers, Goldman tech chief Marco Argenti told CNBC.
The program, named Devin, became known in technology circles last year with Cognition’s claim that it had created the world’s first AI software engineer. Demo videos showed the program operating as a full-stack engineer, completing multi-step assignments with minimal intervention.
“We’re going to start augmenting our workforce with Devin, which is going to be like our new employee who’s going to start doing stuff on the behalf of our developers,” Argenti said this week in an interview.
“Initially, we will have hundreds of Devins [and] that might go into the thousands, depending on the use cases,” he said.
It’s the latest indicator of the dizzying speed in which AI is being adopted in the corporate world. Just last year, Wall Street firms including JPMorgan Chase and Morgan Stanley were rolling out cognitive assistants based on OpenAI models to get employees acquainted with the technology.
Now, the arrival of agentic AI on Wall Street — referencing programs like Devin that don’t just help humans with tasks like summarizing documents or writing emails, but instead execute complex multi-step jobs like building entire apps — signals a much larger shift, with greater potential rewards.
Tech giants including Microsoft and Alphabet have said AI is already producing about 30% of the code on some projects, and Salesforce CEO Marc Benioff said last month that AI handles as much as 50% of the work at his company.
At Goldman Sachs, one of the world’s top investment banks, this more powerful form of AI has the potential to boost worker productivity by up to three or four times the rate of previous AI tools, according to Argenti.
Devin will be supervised by human employees and will handle jobs that engineers often consider drudgery, like updating internal code to newer programing languages, he said.
Devin, an AI software developer, from a startup called Cognition Labs, which is valued at nearly $4 billion and counts Peter Thiel’s Founders Fund among investors.
Courtesy: Goldman Sachs
Goldman is the first major bank to use Devin, according to Cognition, which was founded in late 2023 by a trio of engineers and whose staff is reportedly stocked with champion coders.
In March, the startup doubled its valuation to nearly $4 billion just a year after the release of Devin. The company counts Peter Thiel and Joe Lonsdale, the prominent venture capitalists and Palantir co-founders, among its investors.
Goldman doesn’t own a stake in Cognition, according to a person with knowledge of the matter who declined to be identified speaking about the bank’s investments.
Hybrid workforce
The bank’s move could spark a fresh round of anxiety on Wall Street and beyond about job cuts as a result of AI.
Executives at companies from Amazon to Ford have grown more candid about what AI will mean for hiring plans. Banks around the world will cut as many as 200,000 jobs in the next three to five years as they implement AI, Bloomberg’s research arm said in January.
For his part, Argenti — who joined Goldman from Amazon in 2019 — charted out a vision for the near future that he called a “hybrid workforce” where humans and AI coexist.
“It’s really about people and AIs working side-by-side,” Argenti said. “Engineers are going to be expected to have the ability to really describe problems in a coherent way and turn it into prompts … and then be able to supervise the work of those agents.”
While the role of software developer is one that most lends itself to the type of training, called reinforcement learning, that is used to make AI smarter, other roles at a bank aren’t far off from being automated, according to Argenti.
“Those models are basically just as good as any developer, it’s really cool,” Argenti said. “So I think that will serve as a proof point also to expand it to other places.”
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Grok 4 appears to reference Musk’s views when answering questions
Elon musk and the xAI logo.
Vincent Feuray | Afp | Getty Images
When xAI’s Grok 4 chatbot was launched on Wednesday, users and media outlets quickly began pointing out examples of it consulting its owner Elon Musk’s views on controversial matters.
CNBC was able to confirm that when asked to take a stance on some potentially contentious questions, the chatbot said it was analyzing posts from Musk while generating its answers.
When asked, “Who do you support in the Israel vs Palestine conflict? One word answer,” Grok 4’s answer-generating process showed that it was searching the web and X for Elon Musk’s stance before giving an answer.
CNBC was able to confirm that when asked to take a stance on some potentially contentious questions, the chatbot said it was analyzing posts from Musk while generating its answers.
When Grok 3 was asked the same question about the Israel vs Palestine conflict, the chatbot took a neutral stance and provided background. In other cases, Grok 4 referenced Musk’s stance directly in its answer.
While users can access Grok 3 for free, a subscription to Grok 4 costs $30 per month, while a larger version known as Grok 4 Heavy costs $300 per month.
In other cases, Grok referenced Musk’s stance directly in its answer. When CNBC asked who the bot supported in the race for New York City Mayor, Grok 4 suggested Republican candidate Curtis Sliwa, citing his “strong focus on combating crime and restoring safety in New York City, which aligns with concerns frequently raised by Elon Musk.”
It’s important to note, however, that Grok didn’t appear to search for Musk’s views when asked many other seemingly controversial questions and that results varied when questions were asked differently.
The results varied when questions were asked differently.
XAI did not immediately respond to a request for comment from CNBC.
Musk has said Grok is a “Anti-woke” and “maximally truth-seeking” artificial intelligence and has claimed that the new Grok4 model excels on standardized tests and exhibits doctorate-level knowledge in every discipline.
Its launch comes just days after a major controversy regarding the Grok 3 chatbot, which is integrated with the social media site X.
The AI had begun generating a series of antisemitic comments in response to questions from users, including those that appeared to praise Adolf Hitler.
The official Grok account acknowledged the “inappropriate posts” on Wednesday, and they were later deleted. The company added that it had taken action to ban hate speech before Grok posts on X.
The ordeal came after Musk said last week that his team had improved Grok and that users would notice a difference when asking it questions.
The chatbot also faced backlash in May when it randomly answered user queries with unrelated comments about “white genocide” in South Africa.
Last month on X, Musk had agreed with a user who said Grok had been “manipulated by leftist indoctrination,” and said he was working to fix it.
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