AUSTIN — Kirk Watson and city officials are considering budget cuts that could reduce funding for programs serving low-income families, people experiencing homelessness, and survivors of domestic violence and sexual assault, according to a draft budget released Thursday.
The proposal outlines a spending plan based on a no-new-revenue property tax rate, which would limit the city’s tax revenue growth to 3.5% over the previous year. City Manager T.C. Broadnax previously said the city would need to cut nearly $17 million in social service contracts to balance the budget, and the draft maintains that projection.
The draft identifies potential reductions to programs including permanent supportive housing, workforce development, and adult education.
Despite the proposed cuts, the budget includes funding to cover increased personnel costs tied to public safety contracts, estimated at $30 million. It also allocates $3 million to continue operations at the Marshalling Yard emergency shelter and $2.8 million to hire additional firefighters.
City officials said the budget approach reflects efforts to address affordability concerns while limiting tax increases. Voters rejected Proposition Q in November, which would have raised about $110 million for park improvements and homelessness services.
Watson said releasing a draft budget with potential cuts is intended to provide transparency and allow public input before final decisions are made.
The Austin City Council is expected to begin budget work sessions in July, with final adoption planned for August. Residents will have opportunities to comment on the proposed spending plan in the coming months.
