AUSTIN, Texas — Austin City Manager T.C. Broadnax proposed a $6.6 billion budget Friday that reduces funding for some social services and city programs while increasing spending on public safety, housing and other priorities as the city works to balance its finances for the next fiscal year.
Broadnax presented the proposed budget to the Austin City Council, saying the plan focuses on core city services while addressing financial constraints caused by property tax limits, slower sales tax growth and the expiration of federal pandemic funding.
“Like the community members we serve, we must live within our means,” Broadnax said.
The proposal reduces funding for social service contracts by $5.1 million, less than the $16.8 million reduction city staff had previously projected. It also cuts about $2.9 million in ongoing funding for the Travis County Sobering Center.
Other proposed reductions include $652,000 for the Summer Youth Employment Program, $500,000 for the Rally Austin contract, $400,000 from a Public Health Department healthy food program and about $170,000 from Parks and Recreation programs for seniors and children.
The budget allocates $3 million to keep the Marshalling Yard emergency shelter open, $6 million for permanent supportive housing services, $6 million for Austin Fire Department overtime to maintain four-person staffing, $504,000 to expand Austin Police recruiting, $500,000 for Austin-Travis County EMS overtime and $1.2 million for city pools and park maintenance. It also provides $449,000 to operate the new Austin History Center Campus and $1.5 million to support a citywide audit program.
The proposal eliminates vacant positions in several departments but funds new positions in priority areas, resulting in a net increase of 225 positions.
Broadnax’s proposal follows last year’s rejection of Proposition Q, a property tax measure that led the city to cut $95 million from its budget, including reductions to parks, homelessness programs, emergency rental assistance and social service contracts.
The proposed budget would increase property taxes for the owner of an average-value home of $487,907 by about $173 next year. Combined with proposed increases in trash, water and electricity fees, the average homeowner would pay nearly $350 more annually.
City Council members will review the proposal over the coming weeks before adopting a final budget in August.
Council Member Ryan Alter said the city should continue looking for operational efficiencies before making deeper cuts to services.
Council Member Marc Duchen said affordability will remain a priority during the budget process and that residents have urged the city to manage existing resources more effectively.
The City Council will begin public budget discussions on July 22. It will hold a public hearing on the proposed tax rate on July 30 and another public comment session on Aug. 6 before adopting the budget in August.
