The City of Austin announced that it will cut $5.2 million from social services contracts after voters rejected Proposition Q in the November election, reducing available funding and forcing officials to adjust the social services budget.
City budget officials stated that the $5.2 million reduction will affect existing contracts with social service providers operating in Austin that receive city-administered funds.
City staff reviewed program expenditures, assessed contract performance, and aligned funding levels with the post–Proposition Q budget before identifying the social services contracts for reduction.
Officials confirmed that the cuts will take effect within the current fiscal year and will apply to contracted services that rely on general fund dollars linked to the failed ballot measure.
The city informed impacted social service agencies about the planned reductions through formal notifications, outlining revised contract amounts and implementation timelines.
Austin departments overseeing social service contracts began coordinating with providers to adjust program scopes, modify service levels, or pursue alternative funding sources when available.
The city manager’s office reported that the failed Proposition Q limited expected revenue, requiring departments to reduce or reallocate funding across multiple program areas, including social services.
