Proposition Q, which would have raised property taxes by roughly 20%, failed on Election Day and now Austin officials are back at the drawing board to revamp and re-adopt a city budget. Here’s what you need to know:
💵 Austin City Council Passed a Budget in August With Prop Q in Mind
Let’s start at the beginning: Austin City Council members adopted a $6.3 billion budget in August. The budget included a plan to raise property taxes by more than 3.5%, which triggered a tax rate election.
Thanks to a 2019 law, Texas cities are not allowed to raise property taxes by more than 3.5% without voter approval.
🗳️ Proposition Q Would Have Raised Millions
If Proposition Q had been approved by voters earlier this month, the city would have raised about $110 million during the 2025-26 fiscal year. The money would have been spread out to many city departments, but the largest portion of funds raised would have gone to reducing the number of people experiencing homelessness in Austin.
The city would have used $35.5 million of the $110 million raised for permanent supportive housing, rental assistance, new shelter beds, and more; and $11.5 million to keep the Marshalling Yard and the Eighth Street Shelter open.
✍️ The City Now Has a New Proposed Budget
Austin City Manager T.C. Broadnax released a new budget plan for 2025-26 days after the election that would still raise property taxes, but only by 3.5%. This new proposal includes lots of spending cuts in comparison to the budget council adopted in August, like:
- Roughly $6.3 million from Austin Emergency Medical Services
- $1.3 million from Austin Public Health
- $1 million from the Austin Fire Department
- $5.2 million from the Parks and Recreation Department
About $3.7 million would be added to the Homeless Strategy Office’s budget.
☑️ Council Members Will Vote on the New Budget Later This Month
Austin City Council members have until 6 p.m. on Nov. 14 to submit amendments to Broadnax’s new budget. A vote on the budget will be held during the Nov. 20 council meeting.
