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Austin Manager Proposes $6.6 Billion Budget With Tax Increase and Service Cuts

Reallocating shelter contracts to homelessness operations, raising police funding, proposing a 3.5% tax-cap increase set up a council review that includes public hearings.

Overview

  • City Manager T.C. Broadnax presented the $6.6 billion operating budget on Thursday, July 16, as the starting point for weeks of council work sessions and public hearings ahead of adoption beginning Aug. 12.
  • The plan uses the maximum tax-cap allowed without an election by proposing a 3.5% increase plus higher utility and service fees that the city estimates will cost the typical Austin tax-and-ratepayer about $345.95 a year.
  • Budget documents show a $5.1 million reduction to social service contracts while moving shelter contracts into the Homeless Strategies and Operations department, which increases that department’s budget from roughly $10 million to nearly $32 million.
  • Public-safety budgets rise with a $24.2 million boost for the Austin Police Department to $549.6 million and targeted firefighter and EMS investments including restored fire overtime, 32 new sworn firefighter positions, and increased EMS overtime funding.
  • Labor leaders praised a 3% cost-of-living raise for civilian employees but community groups and some council members criticized the mix of higher police spending and social-service cuts, and the council may amend priorities during the August adoption window.