Austin's $6.6 billion proposed budget focused on fiscal sustainability to enable high-priority community needs

Today, Austin City Manager T.C. Broadnax presented a $6.6 billion operating budget to the Mayor and City Council. The proposed budget refines how Austin spends its resources through thoughtful adjustments to keep essential services strong. By reshaping how departments operate, Austin will be able to protect what residents rely on every day while still investing in service expansions that matter most to the community. 
 
The budget development process began in the Spring with staff presenting financial projections based on what the City was observing at the time – a limited State-allowed property tax cap, fluctuating sales tax revenue and uncertain federal support. Since then, City management has taken a strategic look at refocusing dollars to ensure funding for essential services and invested in critically needed service expansions through departmental expenditure reductions and restructuring. 

“Our overarching goal in planning this budget was to be thoughtful, focused and strategic to understand what is important to Austinites, what they value and what they prioritize,” said City Manager T.C. Broadnax. “While there are reductions in this budget – that’s not the entire story. We also increased investments in key areas, especially those that matter most to our community.” 

Budget Highlights:

• $1.2 million in additional funding for parkland and facility maintenance, as well as operational costs for refurbished pools.
• $275,000 in one-time investments for safety and security improvements at the Austin Animal Shelter.
• $643 million in planned capital spending for the Convention Center Expansion project.
• $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.
• $7.8 million toward local housing vouchers.
• $6 million increase in funding for permanent supportive housing wrap-around services.
• $2.3 million in one-time funding for emergency rental assistance funded through the House Our People Endowment Fund.
• Additional 25 positions to support expanded operations and growth in passenger volume at the Airport.
• $38 million in planned capital spending for corridor program projects from the 2016 Mobility Bond.
• $6.0 million increase in sworn Fire overtime funding to right-size budget while maintaining four-person staffing requirement.
• Additional 32 sworn firefighter positions to support a planned reduced workweek schedule for Austin Fire.
• $500,000 increase in sworn EMS overtime funding to maintain full operational staffing levels during cadet training periods.

Impact on Taxpayers: 

The proposed property tax rate is $0.57953 cents per $100 of assessed property valuation. The typical homeowner will still see an increase of $14.49 per month, or $173.87 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 $28.83 per month, or $345.95 per year.   

Next Steps: 

Austin's proposed budget presentation was broadcast live and will be available on ATXN’s archive. Over the next several weeks, the Austin City Council will host community input meetings and budget work sessions. During this time, the City Council will review the proposed budget and may introduce amendments ahead of final adoption, which begins on August 12. Community members are encouraged to share their feedback on the budget at any of the upcoming meetings:

• July 22, 2026
• July 28, 2026
• July 30, 2026 – Public Hearing on the Budget
• August 4, 2026
• August 6, 2026
• August 12-14, 2026 – Budget Adoption  

To learn more about the City’s Budget development process and get involved, visit AustinTexas.Gov/Budget.