SAN ANTONIO — City officials are confronting a projected $172.6 million budget shortfall by fiscal year 2027, prompting the San Antonio City Council to explore cost-cutting strategies while reaffirming their commitment to avoid increasing the property tax rate.
During a recent council meeting, budget analysts reported that the city faces a $21 million deficit in fiscal year 2026, which is expected to rise to $152 million the following year.
Officials attributed the growing shortfall to declining revenues from sales and hotel occupancy taxes and an increased reliance on property tax income.
Mayor Gina Ortiz Jones and members of the City Council reviewed the long-term financial outlook, emphasizing the need to maintain core services while addressing the deficit.
The city adopted a $3.96 billion budget for fiscal year 2025, with $1 billion allocated to public safety—primarily to the police and fire departments.
Despite financial constraints, the council has ruled out raising the property tax rate. In 2025, the budget is expected to raise $38.9 million more in property tax revenue than the previous year, representing a 5.18% increase.
However, city officials noted that property tax revenues are projected to fall $9.8 million below expectations due to higher-than-anticipated exemptions.
Officials plan to continue evaluating fiscal options with input from analysts and the public. As the financial situation evolves, the City Council remains committed to managing the shortfall responsibly without placing additional tax burdens on residents.
