AUSTIN, Texas — Austin residents are weighing potential property tax increases and spending cuts as the city prepares to release its proposed budget for next year.
The city is expected to unveil a plan Friday that could include millions of dollars of cuts and a tax increase for property owners. The fiscal year begins in October, and city leaders must decide whether to find ways to increase its revenue, cut spending, or use a combination of both.
For some Austin residents, the rising cost of living has been a growing concern for years. They worry higher property taxes could place more burden on those already struggling.
“You just see all the amazing growth,” said Eryck Avila, who has lived in Austin for 30 years. “Obviously I’ve seen my taxes go up dramatically too.”
City documents from an April presentation listed possible cuts, including $16.8 million to social service program contracts and $8.3 million to the fire department overtime budget.
“I understand that we have to cut some stuff, but when it comes to social services, like for homelessness, especially in this weather, I don’t agree with that,” resident Julien Estopado said.
Under state law, the city can increase its maintenance and operations property tax revenue by up to 3.5% without voter approval. Any higher increase would require a citywide vote. Last October, voters rejected Proposition Q, which would have increased property tax revenue by $100 million.
Residents are split on whether higher taxes should be part of the solution.
“To improve a city, we need to tax people. That’s just how it works,” Estopado said.
Avila, however, places the responsibility on city leaders to come up with other solutions.
“There’s got to be a different way. Why are taxes the only solution?” he asked.
Many agreed that there are no easy answers.
“Even people who have families, who’ve inherited homes, have to move out because taxes are going up,” Avila said. “But at the same time, there’s just so many types of basic human needs that are not adequately met by the budget.”
City officials have forecasted that without a voter-approved tax increase or planned budget cuts, the city’s deficit could grow significantly. In April, the city projected its deficit could balloon to almost $77 million next year.
The proposed budget is expected to be posted Friday and the city manager is expected to present it to city council next week.