Austin City Manager T.C. Broadnax on Tuesday released a proposed $6.3 billion budget that eliminates a several-million-dollar deficit, but at a cost to some programs and taxpayers.
In April, officials said the city was looking at a $33 million shortfall for the 2026 fiscal year, blaming flat sales tax revenue, limited property tax revenue and an end to some federal funding.
Since then, Broadnax has tried to find savings in the current budget and tightened spending and other programs in the next budget to balance it. His proposal includes making reductions to overtime spending for police and fire personnel and requires moving $14.1 million from the city's reserve fund.
Kerri Lang, director of Austin's budget office, said balancing the budget also meant passing some of the costs on to taxpayers. Under the proposal, water and trash rates would go up. The average owner of a single-family home would pay an additional $268 in taxes and fees — a nearly 5% combined increase.
But while some tough decisions were made, Broadnax said, the city was still able to make critical investments.
"Balancing the budget with a shortfall in revenue while investing in key areas was made possible by a close and critical look at all spending," he said, "making reductions, realizing savings where appropriate and in a way that does not impact important services."
The $6.3 billion budget includes money for public safety, park maintenance and the city’s new infrastructure academy. Staff would also get a 4% raise.
The city's homeless strategy office is projected to receive $51 million — just a portion of what it said it needed in April.
Zo Qadri said there is a lot to consider as council members debate the budget over the next few weeks.
“Our budgets are our moral document, and I think District 9 deserves a budget, as does the city, that reflects our values,” he said. “Which means making sure that our streets are safe, that we have stable housing and that we have services that work for everyone.”
Council Member Vanessa Fuentes called the proposal a band-aid and said she expects more cuts are on the way.
"When I look at the budget, for me, it's a sobering assessment of the efforts and maneuvering the manager had to do," she said, "whether it was restructuring our staffing structures with public safety, but also pulling from our rainy day fund, meaning we are in that dire of a situation, where we have to pull from our reserves in order to make ends meet."
Council members said the proposed budget does not do enough to truly serve Austinites.
“While we’ve made significant progress, it's simply not enough to meet the needs that we have as a community, and those needs are wide ranging," Fuentes said. "Affordability is top of mind for all of us. … but we are barely getting by.”
Mayor Kirk Watson said the city’s growing needs could push the City Council to consider a tax rate election in November. Several council members said they would consider supporting one.
The city is set to adopt a budget in August.
