UPDATE: The Austin City Council is urgently revising its budget following the rejection of Proposition Q, which would have generated an additional $110 million for the Fiscal Year 2025-26. The newly proposed property tax rate is $0.524017, the maximum allowed without a public vote, nearly five cents higher than last year.
Residents can expect their property tax bills to rise by nearly $9 per month for an average home valued at $495,000, a significant reduction from the $25 increase proposed under Prop Q. The Council is now grappling with cuts that impact critical services.
During a heated debate on Tuesday, the Council proposed slashing $38.2 million from social service contracts, $6.3 million from Emergency Medical Services, $5.2 million from the Austin Parks and Recreation Department, and $1 million from the Austin Fire Department. However, nearly $3.7 million will be added to the Homelessness Strategy Office, reflecting a shift in priorities.
Public sentiment is strong following the November 4 vote. Residents filled City Hall to voice their concerns. “We are all being forced to live within our means,” stated Marian Sanchez, an Austinite and Sustainability Coordinator for PODER. “It’s time that the city does too.”
The public testimony at the City Council Work Session followed a presentation of the revised budget by city staff. Many speakers urged the Council to halt funding for the new convention center and the “cap and stitch” project over I-35, as well as the Project Connect light rail plan. The police department remains a central focus, consuming 35.5% of the amended budget, despite facing 334 vacancies.
“Are we cutting our EMS so we can fund police or just empty police chairs?” questioned Chris Harris, President of Equity Action, in a news conference outside City Hall. “When you have a medical emergency, who is going to respond? An EMS professional or an empty police position?”
In response to the budget revisions, the Downtown Austin Alliance urged the mayor and council to fully support the Homelessness Strategy Office’s initiatives. They also opposed calls to reopen the police union contract for potential savings, emphasizing that such moves could further divide the community and complicate relations with state and federal officials.
Mayor Kirk Watson emphasized that addressing homelessness and public safety will remain top priorities for the Council. “Not only having enough personnel to run ambulances is crucial, but we also need to ensure current staff are not burned out,” stated Ryan Alter, City Council Member of District 5, during the meeting.
The City Council will continue discussions on the revised budget during a special meeting on Wednesday at 10 a.m., which also marks the deadline for all amendments. A public hearing on the proposed budget is set for 3 p.m. the same day, with a potential approval of the budget scheduled for Thursday during their regular meeting. Additional special meetings are planned for Friday and Monday if necessary.
As the Council navigates these urgent budgetary changes, the community is watching closely, eager to see how these decisions will impact vital services and future planning for Austin.
