UPDATE: The Austin City Council is in urgent discussions about significant budget cuts following the rejection of Proposition Q by voters on November 4, 2023. This rejected measure would have raised property taxes, generating nearly $110 million for the upcoming Fiscal Year 2025-26.
The Council is now proposing a new property tax rate of $0.524017, which is the highest allowable without an election and nearly five cents more than the previous fiscal year. For homeowners in Austin with a median-appraised home valued at approximately $495,000, this translates to a monthly tax increase of just under $9, compared to a potential $25 increase under Proposition Q.
During a pivotal City Council Work Session on Tuesday, city staff presented the revised budget, indicating cuts in essential services. Proposed reductions include $38.2 million from social services contracts, nearly $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, the revised budget also allocates nearly $3.7 million to the Homelessness Strategy Office, reflecting growing concerns over homelessness in the city.
“We are all being forced to live within our means,” stated Marian Sanchez, an Austin resident and Sustainability Coordinator for PODER. “It’s time that the city does too.” Her comment resonates with many residents who voiced their opinions at City Hall, emphasizing the need for budgetary restraint.
Public testimonies highlighted opposition to continued funding for projects like the new convention center and the controversial “cap and stitch” plan over Interstate 35. Several community members expressed alarm over the police department’s budget, which comprises 35.5% of the general fund for the amended fiscal year. Under current laws, the Austin Police Department’s budget cannot be reduced from the previous year, despite having 334 vacancies in its ranks.
Chris Harris, President of Equity Action, raised critical concerns during a news conference: “We are cutting our EMS so that not just so we can fund police or the police budget but empty police chairs,” he said. “When you have a medical emergency, who is going to respond? An EMS professional or an empty police position?”
In response to the mounting pressures, the Downtown Austin Alliance urged the city leadership to prioritize funding for the Homelessness Strategy Office. They cautioned against reopening the police union contract, arguing it could lead to divisiveness and unwanted scrutiny at a critical time when state and federal support is essential.
Mayor Kirk Watson reassured the public that both homelessness response and public safety remain top priorities. City Council Member Ryan Alter emphasized the importance of having enough personnel to operate ambulances without overwhelming existing staff.
The City Council will continue its deliberations in a special meeting on Wednesday, November 8, 2023, at 10 a.m., where all budget amendments are due. A public hearing on the proposed budget is scheduled for 3 p.m. the same day. The Council may approve the revised budget as early as Thursday, November 9, 2023, during their regular meeting, with additional special meetings planned for Friday and Monday if necessary.
As the situation unfolds, residents and city officials alike are grappling with the ramifications of these budget decisions, making this a critical moment for Austin’s future.
