Austin City Council Approves $6.6 Billion Budget for Fiscal Year 2026-2027

The Austin City Council has adopted a $6.6 billion budget for Fiscal Year 2026-2027 ensuring continued investments in community priorities. The approved budget incorporates City Manager T.C. Broadnax’s proposed budget while adding a number of investments and directions to address ongoing social service funding, housing, homelessness, and public safety. 

“In the last few weeks, City staff and the Austin City Council have worked together to come up with solutions to the challenges we face as a community,” said City Manager T.C. Broadnax. “This budget takes us forward as a city in a thoughtful and strategic way, focusing on what is important to Austinites, what they value and prioritize.”  

The General Fund budget is $1.5 billion and the Capital Budget includes $4.3 billion in planned spending.  

Budget Highlights:

• $7.8 million toward local housing vouchers.
• $6 million increase in funding for permanent supportive housing wrap-around services.
• $1.2 million in funding for parkland and facility maintenance, as well as operational costs for refurbished pools.
• $5.8 million reduction in funding for software and information technology support as a result of savings from ONE-ATS application rationalization and information technology centralization effort.
• $1.5 million to conduct a City-wide efficiency audit aimed at identifying operational improvements and opportunities for cost savings.
• $6.0 million increase in sworn Fire overtime funding to right-size budget while maintaining four-person staffing requirement.
• $500,000 increase in sworn EMS overtime funding to maintain full operational staffing levels during cadet training periods.

Approved Amendments:

• Restore social service contract funding levels for an additional year to support community investments for children, families and behavioral health.
• $1.4 million for the creation of the Office of Joint Emergency Communications, including funding for operations, nine staff positions, and technology enhancements.
• $114,521 in reductions to consultant contract spending within Austin Housing and Austin Planning.
• $300,000 in funding for Austin Homeless Strategies and Operations along with three full-time equivalent positions for street and outreach.
• $33 million in planned capital spending for safety improvements within the Austin Transportation and Public Works Capital Budget.
• $3 million in planned capital spending toward construction, renovation, and expansion of facility needs within Austin Animal Services.
• $500,000 for the Violet KeepSafe Storage program to double capacity and open new sites across the City.

Impact on Taxpayers: 

The adopted property tax rate is $0.579948 cents per $100 of assessed property valuation. The typical homeowner will still see an increase of $9.48 per month, or $113.76 per year, in the City of Austin’s portion of their annual property tax bill.  

Austin's rates and fees, including for electricity, trash service, water, drainage, and the clean community fee, are proposed to rise in response to escalating operations costs. The projected increase for the typical Austin tax-and ratepayer is $23.82 per month, or $285.84 per year.   

The approved budget document will be available at AustinTexas.gov on October 1, 2026.