UPDATE: The Austin City Council is in crisis mode, grappling with urgent budget cuts following the rejection of Proposition Q by voters on November 4. The proposed property tax hike, which would have generated nearly $110 million for Fiscal Year 2025-26, was turned down, forcing the council to revise its financial plans.
The new proposed tax rate is set at $0.524017, marking the highest allowed by state law without a public vote. This increase translates to an additional $9 per month for the average homeowner with a median-appraised property valued at $495,000. In contrast, Prop Q would have raised bills by $25 monthly.
At the heart of the debate are significant cuts to vital city services. Proposed reductions include $38.2 million from social services contracts, $6.3 million from Emergency Medical Services, $5.2 million from the Parks and Recreation Department, and $1 million from the Fire Department. However, the revised budget does allocate nearly $3.7 million to the Homelessness Strategy Office, reflecting the city’s ongoing struggle with homelessness.
Residents expressed their concerns at City Hall, emphasizing the need for the city to also “live within its means.” Marian Sanchez, a local Sustainability Coordinator, stated, “It’s time that the city does too.” The council’s work session included public testimony, where many called for halting funding for controversial projects like the new convention center and the Project Connect light rail plan.
The police budget remains a focal point, comprising 35.5% of the overall general fund budget. Under state law, the Austin Police Department cannot receive less funding than in the previous fiscal year, despite facing 334 vacancies. Activist Chris Harris criticized the cuts to Emergency Medical Services, questioning, “When you have a medical emergency who is going to respond? An EMS professional or an empty police position?”
In response to the growing public outcry, the Downtown Austin Alliance called for the mayor and council to prioritize funding for the Homelessness Strategy Office. They warned against reopening the police union contract for potential savings, arguing it could further divide the community at a time when unity is crucial.
Mayor Kirk Watson reiterated the council’s commitment to addressing both homelessness and public safety. “Not only having the personnel to run enough ambulances, I don’t want those people also who are currently doing that job to be burned out,” stressed Ryan Alter, City Council Member for District 5.
The council is expected to continue these urgent discussions during a special meeting on Wednesday at 10 a.m., which coincides with the deadline for all budget amendments. A public hearing on the proposed budget is set for Wednesday at 3 p.m. The council aims to approve the revised budget in their regular meeting on Thursday, with additional special meetings scheduled for Friday and Monday if necessary.
As the situation develops, residents are watching closely, knowing that the outcomes will directly impact critical services in their community. Stay tuned for updates as budget negotiations unfold and the council navigates these pressing financial challenges.
