The proposed budget represents a nearly five percent increase from last year\u2019s record<\/a> of $6.3 billion, a nearly 12 percent increase from 2024\u2019s record<\/a> of $5.9 billion, and a 20 percent increase since 2023<\/a>.<\/p>\n For perspective, Austin\u2019s budget was $4.5 billion in 2021<\/a> and $3.3 billion in 2013<\/a>.<\/p>\n The $6.6 billion proposed expenditure covers the city\u2019s general fund, municipal utilities, and the city\u2019s airport. It includes at least $40 million<\/a> for services that promote vagrancy.<\/p>\n To pay for the spending, the proposal requests a property tax increase of more than eight percent.<\/p>\n The proposal also requests increases in residential utility and water rates. Austin provides these services through a monopoly municipal utility system that is not permitted anywhere else in Texas.<\/p>\n The proposal comes at a time of unprecedented public fury at municipal spending.<\/p>\n Last month, the city clerk officially certified<\/a> a ballot measure that could impose new fiscal transparency requirements.<\/p>\n If passed, the referendum would amend the city charter to require independent audits of municipal finances every five years.<\/p>\n Additionally, if the city council wants to pursue a future tax rate election, the proposed charter amendment would require the municipal government to complete such an audit before calling the election.<\/p>\n The City of Austin currently conducts various internal audits. The proposed charter amendment would supplement this process with regular external reviews.<\/p>\n The referendum follows the landslide defeat<\/a> of Proposition Q, a ballot measure that could have enshrined hundreds of millions of dollars in municipal spending, in November 2025.<\/p>\n Austin\u2019s municipal spending has long been<\/a> a subject of criticism. This criticism has grown following an explosion of spending for vagrancy services<\/a> in recent years.<\/p>\n Save Austin Now, a non-partisan watchdog, previously spearheaded a 2021 effort to restore a ban on camping in public places by vagrants. The council had repealed this prohibition in 2019, creating a rash of consequences including fire hazards, health concerns<\/a>, and public safety<\/a> issues.<\/p>\n A recent Texas Scorecard investigation also uncovered millions of dollars<\/a> in public subsidies for groups that promote dangerous sexual activity.<\/p>\n A similar effort to require a municipal audit fell short<\/a> in 2018. At the time, Austin\u2019s municipal budget was $4.1 billion<\/a>.<\/p>\n The audit referendum will appear at the bottom of the ballot after federal, state, and local offices.<\/p>\n Gov. Greg Abbott<\/a> has also proposed<\/a> a series of taxpayer protections, including municipal spending caps and supermajority approval for tax increases, for consideration during next year\u2019s legislative session.<\/p>\n
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