SAN ANTONIO – With just days left before San Antonio City Council votes on the city’s next budget, leaders are weighing cuts and potential tax changes to close a projected $158 million deficit.

Council members discussed the fiscal year 2027 budget during a work session that highlighted competing priorities, including police and traffic safety, affordable housing, homeless services and whether to redirect tax increment reinvestment zone funds, known as TIRZ money, to help balance the city’s general fund.

District 3 Councilwoman Phyllis Viagran warned colleagues about the limits of the city’s finances as the deficit looms.

“There isn’t any more money. That’s what a deficit is. We do not have the money for some of the things you want. If you are saying you’re not going to have a property tax, then don’t ask for anything else,” Viagran said.

Council members debated whether to keep TIRZ funds tied up in development projects or send more of that money to the general fund. District 9 Councilwoman Misty Spears said she was conflicted about how the funds could be used.

“That’s where I’m conflicted, is that this could go to police officers,” Spears said.

Funding for homeless services was also part of the discussion. The city’s proposed homeless services budget is $29.3 million. Mark Carmona, the city’s chief housing officer and director of the Homeless Services and Strategy Department, said the city still has significant unmet needs.

“We still identified in our framework that we still need over 500 emergency shelter beds in the community; we’re just trying to, in this fiscal year, address and make sure we have coverage for what’s going on right now,” Carmona said.

The Midtown TIRZ drew particular attention because officials said the money could help buy the former ITC Center site for a future Spurs arena. Officials said the TIRZ would need to be extended to make the purchase financially feasible. Veronica Garcia, director of the Neighborhood & Housing Services Department, called the funding a key piece of the project.

“It’s a critical part of the Spurs arena development,” Garcia said.

City Council is scheduled to take up TIRZ extensions and projects Sept. 10.