Austin City Council Revises Budget After Proposition Q Defeat

BREAKING: The Austin City Council is urgently revising its budget following the rejection of Proposition Q by voters, which would have generated $110 million for the Fiscal Year 2025-26. In a special session held on November 21, 2023, council members debated crucial cuts and adjustments to address the financial gap left by the failed tax hike.

Under the new proposed property tax rate of $0.524017, the average homeowner in Austin, with a median-appraised home valued at nearly $495,000, will see an increase of just under $9 per month. This is significantly lower than the $25 increase that would have occurred under Proposition Q.

The proposed budget cuts are substantial, including $38.2 million from social services, nearly $6.3 million from Emergency Medical Services, $5.2 million from the Austin Parks and Recreation Department, and $1 million from the Austin Fire Department. However, the budget does allocate an additional $3.7 million to the Homelessness Strategy Office, reflecting a commitment to address urgent social issues.

Public sentiment has been vocal following the election results. Many residents, including Marian Sanchez, a local sustainability coordinator, expressed strong opinions during public testimony. “We are all being forced to live within our means,” Sanchez stated. “It’s time that the city does too.”

The council faced intense scrutiny over its spending priorities. Several speakers called for halting funding for projects such as the new convention center and the light rail plan, urging the council to reconsider its budget allocations, particularly regarding the police department, which consumes 35.5% of the amended budget.

During a news conference, Chris Harris, President of Equity Action, highlighted the risks associated with prioritizing police funding over emergency medical services, stating, “When you have a medical emergency who is going to respond? An EMS professional or an empty police position?”

In a statement, the Downtown Austin Alliance urged the council to maximize funding for the Homelessness Strategy Office, rejecting proposals to reopen the police union contract for potential savings. They warned that such actions could create divisions within the community at a time when unity is crucial for securing state and federal support.

Mayor Kirk Watson emphasized the importance of balancing homelessness response and public safety. “Not only having the personnel to run enough ambulances, I don’t want those people also who are currently doing that job to be burned out,” said Ryan Alter, City Council Member of District 5.

The council will continue discussions on the revised budget during a special meeting on November 22, 2023, at 10 a.m., which also marks the deadline for all budget amendments. A public hearing is scheduled for the same day at 3 p.m., with a potential budget approval set for November 23, 2023. Additional meetings are planned for November 24 and November 27 if necessary.

As the city navigates these challenges, the decisions made in the coming days will significantly impact Austin’s financial future and its residents. Stay tuned for updates as the situation develops.