Austin leaders are preparing to trim about $100 million from the city's budget after voters rejected a tax increase that would've provided added funding for services like public safety, homelessness response and parks maintenance.

The setup

With the failure of Proposition Q in the Nov. 4 election, City Council members must now adopt a revised fiscal year 2025-26 budget based on less tax revenue than was included in the spending plan they approved in August.

That two-day process came after weeks of consideration of an initial budget proposal forwarded by City Manager T.C. Broadnax in July. Officials are now likely to approve a final plan closer to Broadnax's original outline, with some changes based on their priority spending areas and slightly higher-than-anticipated tax revenue for the coming year.

Following the election, Mayor Kirk Watson called for a "coherent, straightforward budget process" focused on the basics and with minimal edits. The city budget office released its recommendations for the more limited spending plan Nov. 7, and City Council could adopt it as soon as Nov. 20.


"Voters want stable, efficient governance," Watson said on council's message board. "Our city government needs to show it can act in a thoughtful, structured way."

The specifics

Proposition Q was projected to add about $109.5 million to Austin's general fund, which mainly covers public-facing services and accounts for almost one-fourth of the overall $6.3 billion city budget. Financial staff now recommend downward revisions to nearly all general fund departments with about $100 million less to work with; rising property tax revenue projections since the summer may offset some of the funds to be removed.

The largest high-level changes recommended in response to the November election are the loss of a $40.51 million transfer into stabilization reserves, or rainy day funds, and a $38.22 million cut to social service contracts largely aimed at addressing homelessness.


Department budgets and other spending in the general fund remained roughly proportional across each budget iteration. Comparisons between the draft general fund budget presented in July, the City Council-amended version adopted in August, and the new outline recommended Nov. 7 can be viewed below.
Some spending in the November revision highlighted by the budget office includes:
  • $5 million from the general fund and $3 million from the Housing Trust Fund to maintain a temporary homeless shelter at the Marshalling Yard facility, adding to the more than $15 million spent on that project since 2023
  • $3.5 million to continue operating the Eighth Street Shelter
  • $2 million for 20 new parks maintenance staff positions—one-third of those included in the approved budget—and $1.02 million for improved maintenance at cemeteries, youth athletic fields, aquatic facilities and parks
This fall's staff-recommended budget would maintain 4% base wage increases for most city employees, with 6% raises for Austin Police Department officers and 3% raises for sworn Austin/Travis County Emergency Medical Services employees under current labor agreements. Austin Fire Department employees would be in line for higher pay under a tentative labor deal set to be approved Nov. 20; $5.7 million is budgeted for those changes.

A small number of lower-income employees would receive $2,120 instead of the percentage-based raises, costing $50,150 total. Bad weather stipends for frontline employees, totaling $300,000, were removed.

Some other general fund reductions could include:
  • A $9 million cut to police overtime and $8.3 million cut to fire overtime as their staffing models are updated
  • Nearly $4 million in EMS cuts for ambulances and increased staffing
  • A $3.5 million cut to Austin's share of Travis County's Counsel at First Appearance legal assistance program, equating to 18 staff positions
  • Removing $3.1 million for Expanded Mobile Crisis Outreach Team, or EMCOT, mental health 911 response
  • Cutting $1.5 million for community violence intervention, including trauma recovery
  • Cutting $1.3 million for family stabilization program grants
  • A $1.1 million decrease in transfers to the Housing Trust Fund for affordable housing programs
  • No $800,000 allocation for regional animal adoption centers
  • $310,000 less for youth employment and development programs
  • $200,000 less for staffing in the city's arts and culture office
  • A $124,850 cut to Austin Planning, removing a financial support staff position
  • A $50,783 cut to Austin Homeless Strategies and Operations, removing staff funding that could still be balanced with vacancy savings
In response to council's approach in the summer, the budget office proposed shifting around some dollars from the first draft budget to more closely match their priorities. The following items could be funded by reallocating more than $5 million from existing economic development, homelessness, municipal court and public health contracts:
  • $1 million for shorter-term rapid rehousing, or RRH, beds for people exiting homelessness—down from $12 million approved in August—while an additional $650,000 for six RRH case managers would be maintained
  • $750,000 for the encampment clearing and shelter program; down from $3 million
  • $600,000 for landlord engagement; down from $1.13 million
  • $500,000 for Sobering Center operations; down from $1.06 million
  • $500,000 for workforce development and re-entry programs; down from $1.9 million
  • $500,000 for homeless diversion programs; no change
  • $500,000 for homeless navigation services; no change
  • $250,000 for family violence victim navigation services; down from $500,000
  • $27,000 for showers at the Charlie Center navigation center in Northwest Austin; no change
Additionally, more than $14 million would be transferred out of reserves as "transitional funding" for:
  • Social service contracts lacking other funding sources
  • Development of Austin's 2026 bond package
  • AFD cadet training and firefighter equipment
What's next

Council will hold budgeting work sessions Nov. 13 and 18. A final budget could be adopted Nov. 20, 21 or 24.


Officials still have the chance to edit the spending plan as well. Their amendments will likely be accepted through Nov. 14 for consideration ahead of council's final vote.