AUSTIN, Texas — Austin City Manager T.C. Broadnax will present a proposed $6.6 billion budget for fiscal year 2026-2027 on Thursday, outlining a plan to address a projected $26 million budget shortfall while maintaining funding for public safety, utilities and other city services.
The proposal includes a 3.5% increase in property tax revenue, the maximum allowed under Texas law without requiring voter approval. City officials estimate the increase will generate about $82 million in additional revenue, including roughly $18 million from new development added to the tax rolls.
The proposal follows Austin voters’ rejection of Proposition Q in November 2025, which would have allowed the city to exceed the state’s voter-approval tax rate.
Public safety and utilities account for the largest share of the proposed budget. About 65% of total spending is allocated to General Fund operations and citywide utilities, with Austin Energy and Austin Water representing 43% of the overall budget.
Within the General Fund, police, fire and emergency medical services receive the largest allocation, including $504,000 for Austin Police Department recruiting efforts.
The proposal also includes funding to meet growing demand for city services, including maintenance and operations for Austin’s parks system.
Following Thursday’s presentation, the Austin City Council will conduct public hearings and budget work sessions through July and early August before voting on a final budget in mid-August. If approved, the budget will take effect Oct. 1.
