{"id":376667,"date":"2026-07-17T10:27:08","date_gmt":"2026-07-17T10:27:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/376667\/"},"modified":"2026-07-17T10:27:08","modified_gmt":"2026-07-17T10:27:08","slug":"austin-budget-debate-centers-on-3-5-property-tax-hike-cuts","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/376667\/","title":{"rendered":"Austin budget debate centers on 3.5% property tax hike, cuts"},"content":{"rendered":"<p><img alt=\"Austin City Manager T.C. Broadnax, left, and Mayor Kirk Watson discuss a new city budget at City Hall on Thursday, Nov. 20, 2025.\u00a0\" loading=\"eager\" fetchpriority=\"high\"   style=\"aspect-ratio:4 \/ 3\" class=\"x100 y100 opc bgpc ofcv bgscv block bg-gray200 mnh0px fill\"\/><\/p>\n<p>Austin City Manager T.C. Broadnax, left, and Mayor Kirk Watson discuss a new city budget at City Hall on Thursday, Nov. 20, 2025.\u00a0<\/p>\n<p>Jay Janner\/Austin American-Statesman<\/p>\n<p>A proposed <a href=\"https:\/\/www.statesman.com\/news\/local\/article\/austin-budget-reaction-city-council-22344739.php\" data-link=\"native\" class=\"\" rel=\"nofollow noopener\" target=\"_blank\">3.5% property tax increase<\/a> emerged Thursday as one of the first major tension points in Austin\u2019s budget debate, <a href=\"https:\/\/www.statesman.com\/news\/local\/article\/austin-city-council-tax-rate-vote-proposals-20801310.php\" data-link=\"native\" class=\"\" rel=\"nofollow noopener\" target=\"_blank\">reviving tensions<\/a> from last year\u2019s fight over a much larger tax hike that voters rejected.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn-channels-pixel.ex.co\/events\/0012000001fxZm9AAE?integrationType=DEFAULT&amp;template=design%2Farticle%2Fplatypus_two_column.tpl\" alt=\"\" class=\"x1px y1px vh abs\" aria-hidden=\"true\" width=\"1\" height=\"1\"\/><\/p>\n<p>The divide surfaced as city council members got their first opportunity to publicly question City Manager T.C. Broadnax\u2019s proposed $6.6 billion budget.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>Released late Friday, the budget relies on higher taxes and fees \u2013 in addition to millions in cuts and reallocations \u2013 to balance a projected $26 million budget deficit. The manager\u2019s budget also increased funding to priorities like homeless programs, public safety and employee pay and healthcare raises.\u00a0<\/p>\n<p>The 3.5% increase in property tax collections is the maximum the city can adopt under state law without seeking voter approval. The increase has become politically charged less than a year after <a href=\"https:\/\/www.statesman.com\/news\/politics\/elections\/local\/article\/austin-proposition-q-fails-2025-election-result-21135217.php\" data-link=\"native\" class=\"\" rel=\"nofollow noopener\" target=\"_blank\">Austinites rejected Proposition Q<\/a>, which would have raised city property taxes by more than 20%.<\/p>\n<p><a href=\"https:\/\/www.statesman.com\/news\/local\/article\/austin-budget-reaction-city-council-22344739.php\" data-link=\"native\" class=\"\" rel=\"nofollow noopener\" target=\"_blank\">Debates over social service cuts<\/a>, police funding and higher tax rates have already emerged as potential key fights as council starts debating the budget over the next several weeks.\u00a0<\/p>\n<p>As proposed, the budget would increase property taxes and service fees for electricity, water, trash and drainage rates. Together, the increases would cost the average Austin homeowner nearly $346 a year (or about $29 a month).\u00a0<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>Council Member Marc Duchen, the only council member to vote against the budget that led to last year\u2019s property tax election, told the council he was surprised by the proposed budget and thought that it would have been more \u201creflective of some fiscal discipline after the tax rate election last year and instead it looks like we started off with the max.\u201d<\/p>\n<p>\u201cIt\u2019s not really what I was expecting,\u201d he added. \u201cI thought after starting the conversation a couple months ago about zero based budgeting,\u00a0<\/p>\n<p>\u201cWhen I look back for the last four years at the 3.5% that we approved, it sure looks like the state gave us a ceiling, but we treat it as a floor,\u201d he said.\u00a0<\/p>\n<p><img alt=\"Austin City Council member Marc Duchen speaks at a city council meeting onThursday, Sept. 25, 2025.\" loading=\"lazy\"   style=\"aspect-ratio:3 \/ 2\" class=\"x100 y100 opc bgpc ofcv bgscv block bg-gray200 mnh0px fill\"\/><\/p>\n<p>Austin City Council member Marc Duchen speaks at a city council meeting onThursday, Sept. 25, 2025.<\/p>\n<p>Jay Janner\/Austin American-Statesman<\/p>\n<p>Mayor Kirk Watson highlighted his request to analyze a no new revenue version of the budget because he did not want council to jump to the conclusion that they would raise taxes by 3.5%.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>\u201cIt would help us identify and I think, it would help the public identify, what happens if we do go to the full 3.5%,\u201d he said.\u00a0<\/p>\n<p>But other council members \u2013 many of whom advocated for an even higher tax rate increase than what council put on the ballot this time last year \u2013 pushed back on the idea of going under a 3.5% raise.<\/p>\n<p>Council Member Ryan Alter said that over the last year, the city\u2019s inflation has been 3.5%.\u00a0<\/p>\n<p>\u201cKeeping up with the cost of what we&#8217;ve been doing just over the past 12 months \u2013 not growing in the city, not doing anything new \u2013 costs 3.5% more,\u201d he said.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p><img alt=\"Austin City Council Member Ryan Alter listens during discussion of a new city budget at City Hall on Thursday, Nov. 20, 2025. The Austin City Council is set to vote on a budget that includes millions of dollars in spending cuts after voters rejected Proposition Q in November, a ballot measure that would have raised property taxes and generated $110 million in new revenue.\" loading=\"lazy\"   style=\"aspect-ratio:3 \/ 2\" class=\"x100 y100 opc bgpc ofcv bgscv block bg-gray200 mnh0px fill\"\/><\/p>\n<p>Austin City Council Member Ryan Alter listens during discussion of a new city budget at City Hall on Thursday, Nov. 20, 2025. The Austin City Council is set to vote on a budget that includes millions of dollars in spending cuts after voters rejected Proposition Q in November, a ballot measure that would have raised property taxes and generated $110 million in new revenue.<\/p>\n<p>Jay Janner\/Austin American-Statesman<\/p>\n<p>At a press conference after the meeting, Budget Director Kerri Lang said that without the 3.5% increase, the city would anticipate $26 million more in cuts they would need to balance.\u00a0<\/p>\n<p>\u201cIf we do not go to the full 3.5% in each year we forever lose that revenue and so the growth is lower which makes it harder for us to balance out our ongoing needs in not just the current fiscal year but in future years,\u201d she said.\u00a0<\/p>\n<p>Some council members also raised questions about cuts to social services and housing.\u00a0<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>Council Member Mike Siegel echoed the concerns of the recently formed community budget coalition, which has advocated for cutting police funding and moving the money to social services.<\/p>\n<p>\u201cA lot of advocates, since the budget dropped, have been asking the question, how is it that we are raising the police budget by $25 million while we&#8217;re cutting social services? \u2029And that doesn&#8217;t feel good in terms of how we address the root causes of crime and finance,\u201d he said.<\/p>\n<p><img alt=\"District 7 council member Mike Siegel, along with other city council members and activists, spoke out against automated license plate readers during a press conference at City Hall on Wednesday, June 4, 2025.\" loading=\"lazy\"   style=\"aspect-ratio:3 \/ 2\" class=\"x100 y100 opc bgpc ofcv bgscv block bg-gray200 mnh0px fill\"\/><\/p>\n<p>District 7 council member Mike Siegel, along with other city council members and activists, spoke out against automated license plate readers during a press conference at City Hall on Wednesday, June 4, 2025.<\/p>\n<p>Ricardo B. Brazziell\/Austin American-Statesman<\/p>\n<p>Lang said after the meeting that most of the police budget was from contractual agreements with the union and the other half came from internal services costs to departments. The only brand new investment police received was one civilian position for recruiting, she added.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>Council will continue debating the budget over the next several weeks until they vote to adopt it on Aug. 12. The public will have a chance to weigh in during public comment at council meetings and through <a href=\"https:\/\/www.statesman.com\/news\/local\/article\/austin-budget-2027-proposal-22340759.php\" data-link=\"native\" class=\"\" rel=\"nofollow noopener\" target=\"_blank\">district-based town halls.<\/a>\u00a0Next Tuesday, budget staff will present more details on the controversial social services cuts.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Austin City Manager T.C. Broadnax, left, and Mayor Kirk Watson discuss a new city budget at City Hall&hellip;\n","protected":false},"author":2,"featured_media":376668,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[132,134,133,8002],"class_list":["post-376667","post","type-post","status-publish","format-standard","has-post-thumbnail","category-austin","tag-austin","tag-austin-headlines","tag-austin-news","tag-policy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/376667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=376667"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/376667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/376668"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=376667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=376667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=376667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}