What To Know About Austin’s New $6.3 Billion Budget

Austin City Council members on Wednesday began the process of adopting a new budget that could trigger a tax rate election in an effort to counter the city’s $33 million deficit. City Manager T.C. Broadnax proposed a $6.3 billion budget, which the council is modifying.

Here’s what you need to know:

📈 A Tax Rate Election Could Impact Your Wallet

Cities, thanks to a 2019 law, are not allowed to raise property taxes by more than 3.5% each year without voter approval.

Local City Council members must decide this week what they will add to Broadnax’s budget, which includes a tax rate of $0.52 per $100 of valuation. If Council adopts Broadnax’s budget without increasing the rate, Austin homeowners would see their property tax bill go up by $154.83.

If council members do increase the tax rate — discussions are hovering around a $0.05 increase per $100 of valuation — it will be put on the November ballot for a tax rate election. If voters reject the new tax rate, Austin City Council members will have to revisit the budget and make cuts.

🏢 Funding for New Positions, Safety Equipment, and More Included

The proposed budget, which is up from $5.9 billion from the previous fiscal year, includes funding for 12 new positions in the Homeless Strategy Office, more security at city libraries, roughly $280,000 in safety equipment for wildfire response teams, and more.

A 4% wage increase for city civilian employees, $250,000 to improve accessibility in public places, and creating an Austin Arts, Culture, Music, and Entertainment department are also included in the proposed budget.

✂️ Some Departments Will See Cuts To Deal With Deficit

The proposed budget includes about $19.3 million in cuts, but council members are not unanimously supportive of making them.

Broadnax’s proposed cuts include: