City manager outlines spending plan that shifts priorities, raises costs for average homeowners
City Manager T.C. Broadnax released a proposed $6.6 billion Fiscal Year 2026-27 budget late last week that would reduce grants to social service providers while increasing spending for homelessness services, public safety and city staffing.
The plan arrives as Austin contends with constrained revenue: limits on property tax growth, slower sales-tax receipts and the end of federal pandemic-era funding. Broadnax framed the proposal around fiscal restraint.
“Like the community members we serve, we must live within our means,”
The proposal would cut roughly $5.1 million in grants to social service organizations and would remove about $2.9 million in ongoing city funding for the Travis County Sobering Center. Other program reductions outlined include the Summer Youth Employment Program, Rally Austin, a healthy food access initiative run by Austin Public Health, and some Parks and Recreation services for seniors and children.
At the same time, the budget shifts money to address homelessness and public safety: $3 million is proposed to keep the Marshalling Yard emergency shelter open; $6 million for permanent supportive housing services; and another $6 million to fund Austin Fire Department overtime to maintain four-person staffing. The plan also includes additional funds for police recruiting, EMS overtime and $1.2 million for pools and park maintenance.
- Overall proposed budget: $6.6 billion
- Reduction in social service grants: $5.1 million
- Ongoing cut to Sobering Center funding: $2.9 million
- New homelessness and fire department spending: $3M to $6M items
The spending plan would add staff even after eliminating some vacant positions, with a projected net increase of roughly 225 city positions. Officials estimate the proposal would raise costs for the owner of an average-value home. For a house valued at $487,907, the city portion of property taxes would rise by an estimated $173 next year. When combined with proposed increases to trash, water and electric fees, the total annual increase in city taxes and fees for the typical homeowner could approach $350.
| Item | Amount |
|---|---|
| Proposed budget | $6.6 billion |
| Social service grant reductions | $5.1 million |
| Sobering Center cut | $2.9 million |
| Estimated homeowner property tax increase | $173 (average home) |
The proposal follows last year's rejection by voters of Proposition Q, a measure that would have increased property taxes. After the defeat, the City Council trimmed about $95 million from the current budget. With those constraints still in play, officials must balance competing demands: sustaining core public safety and homelessness responses while preserving services provided by community nonprofits.
Next steps include public hearings and deliberations by the City Council before any final adoption. The choices made in the coming weeks will determine which programs are cut and how much of the cost burden falls on homeowners versus municipal services — a debate that will influence Austin's policy and fiscal course across Travis County in the year ahead.
