Austinites will soon be voting on a tax rate increase that city officials say will help address some of the city\u2019s thorniest issues.<\/p>\n
In August, the Austin City Council approved a $6.3 billion budget but called on voters to approve a higher tax rate<\/a>. On the November ballot as Proposition Q, the rate of 57.4 cents per $100 of taxable value would generate nearly $110 million for the 2025-26 fiscal year. That money would be used to help reduce homelessness, improve parks and enhance public safety.<\/p>\n Austin was already facing a $33 million budget shortfall<\/a> that city officials have attributed to sales tax and property tax revenues not bouncing back following the COVID-19 pandemic. <\/p>\n There has also been a cut to some federal funding that the city depended on to help pay for critical services like emergency shelter for people who are unhoused and rental assistance programs. The council has said the city would need to foot the bill itself to keep these programs going.<\/p>\n But the ask is coming at a time when residents are already facing a rise in cost of living due to inflation and higher property tax rates across the Austin area.<\/p>\n Travis County approved a higher property tax<\/a> to help pay for July flood damages and to financially prepare for future natural disaster needs. Austin Community College and Central Health,<\/a> the local public hospital district, also increased property taxes. Austin ISD taxpayers, meanwhile, could see a decrease of nearly $500<\/a> \u2013 or more if voters approve a higher state homestead exemption<\/a> this November.<\/p>\n If Prop Q is approved, the average homeowner with a home valued around $500,000 is looking at an additional $270 on their tax bill next year with all entities combined.<\/p>\n The $110 million will be split across several different city needs<\/a>, including increasing affordable housing opportunities, reducing homelessness, improving parks and community recreation programs, and enhancing public safety and public health.<\/p>\n Homelessness funding<\/p>\n The largest chunk of the money is aimed at addressing affordability and homelessness. The city plans to allocate $35.5 million for permanent supportive housing, rental assistance, case management services and new shelter beds. There is also an additional $11.5 million to keep the Marshalling Yard<\/a> and the 8th Street Shelter going and $1.9 million for re-entry workforce development programs<\/a>.<\/p>\n In April, the city\u2019s Homeless Strategy Office team told the City Council it would need nearly $101 million,<\/a> of which $33 million would come from community partners, to effectively address homelessness by expanding emergency shelters and other support services.<\/p>\n David Gray, the office’s director, told KUT that Prop Q’s passing would help the office \u201cjump-start\u201d the plan.<\/p>\n \u201cThese dollars will help the city and our partners get people off the street, get them into shelter or housing, and get them to a point where they can live stably and securely on their own,\u201d he said.<\/p>\n Parks, health and public safety<\/p>\n