Photo: Community Impact
Austin City Council Approves $6.3 Billion Budget with Tax Rate Election
Austin City Council approved its $6.3 billion budget for fiscal year 2025-2026 on Thursday, after two days of deliberations. The approval came with a significant condition: voters must approve a substantial tax rate increase in November for the full budget to be implemented.
Tax Rate Increase Details
Austin’s tax rate will jump from $0.4776 to $0.574017 per $100 in property value—a more than 20% increase requiring voter authorization. This represents a 5-cent increase above the state-imposed voter approval limit, which automatically triggers a Tax Rate Election (TRE) that will appear on the November ballot.
Financial Impact on Residents
The “typical” resident—defined by the city as owning a median-valued home with standard utility and service use—could expect to pay almost $420 more in the coming year under the council-approved spending plan. That increase includes about $300 more in taxes if voters support the higher rate.
If voters reject the tax increase, the base FY 2025-26 budget would cost the typical homeowner about $220 more including a $105 higher tax bill.
Budget Priorities and Funding
The budget includes millions of dollars for homelessness services, $2.5 million to support the Austin Infrastructure Academy, funding to enhance the EMS response system and a 4% pay increase for city staff. The increased tax rate would generate nearly $110 million during the 2025-2026 fiscal year.
Key areas that would receive additional funding through the tax rate increase include:
- Homelessness response and services
- Parks and public facilities
- Public health and safety programs
- Housing assistance
- Emergency reserves maintenance
Council Member and City Leader Reactions
Mayor Kirk Watson expressed strong support for trusting voters with the decision, stating “It is time for us to trust our voters” after the council’s vote.
Council Member Zo Qadri emphasized the budget’s comprehensive approach, saying “That is what I hope this budget and the upcoming [tax rate election] will do. That we are going to be in a city that truly works for everyone.”
Council member Chito Vela:
However, there was not unanimous support among council members. Council member Marc Duchen stated any tax hike needing voter approval is unnecessary, while most other council members backed higher tax rates to shore up a range of public programs.
Public Response
Community reaction was mixed during nearly seven hours of public testimony. Advocates for social services and homelessness programs supported the increase, while others opposed it due to affordability concerns.
Budget Challenges and Context
City leaders labeled this summer’s budgeting process as the most challenging in recent memory as Austin faces widening shortfalls through the 2020s. When City Manager T.C. Broadnax put together the budget, the city was facing a $33 million shortfall due to a combination of flat sales tax revenue, limited property tax revenue and an end to some federal funding.
The November tax rate election will determine whether Austin can fully fund its expanded services or will need to make additional cuts to city programs and services.
“I have a confession to make. I killed a man and a baby girl today. In Target. In the Target parking lot. I shot them both, because I’m Jesus.”
“I realized I was Jesus, and I had to grab my gun and shoot a couple of people to save us all. I killed these people out of love, not out of hate… I realized that I had to kill a couple of people to set everyone free, so I did it. It was just random, I guess. It was like I was just trying to get anyone I could.”
Arrest papers show 32-year-old Ethan Nieneker’s confession right after Monday’s deadly shootings outside a North Austin Target store, in which three people died.
Police say a family member gave Nineker the gun used in Monday’s murders as a gift.
A woman is mourning the loss of her fiancée Rosa Machuca, who was killed in a random shooting at the Target where she worked.
In a sit-down interview with FOX 7 Austin, Travis County District Attorney Jose Garza was asked about some of the criticism he has faced.
FOX 7: Critics have thrown around the term ‘rogue DA’ a lot. What’s your response to that?
GARZA: Well, I am just so proud of the work that our team has done to improve the safety of this community. And you know, if increasing the number of convictions that we secure for survivors of sexual assault makes me a rogue DA, then I’m happy to wear that mantle. If working hard to reduce gun violence in our community makes me rogue DA then I happy to wear that mantle. I think at the end of the day, I am so grateful and proud to have the opportunity to represent this community. And so what the people who live here think of our work is really all that matters to me.
The Austin Police Association criticizes DA Garza for downgrading first-degree felony charges to misdemeanors with two years deferred adjudication, despite suspects having mental health issues and histories of violent crime.
Austin spends millions on overtime pay for police officers. The city is scaling that back. (Austin Monitor)
Leander ISD parents are demanding action after a school bus rolled over on Nameless Road. Seventeen students were injured on their way home after the first day of school.
Five dogs were injured and one was killed after a man allegedly broke into the Town Lake Animal Center and released the animals from their kennels Wednesday night, leading to several altercations between the animals.
A Georgetown police officer is on administrative leave pending an investigation into allegations he had sex with a female victim during a domestic disturbance call.
A live streamer involved in a scavenger hunt in Austin has been arrested after an incident with a paintball gun along the Butler Hike & Bike Trail.
San Marcos authorities say a gun stolen from a vehicle was later used in a shooting.
Also out of San Marcos, police are searching for a woman who they say punctured the tires of a vehicle following the No Kings protest in June.
A “No Kings” rally is scheduled for tomorrow at the State Capitol in Austin.
Today, a rally to mark the 90th anniversary of Social Security will be held at the Capitol.
UT Austin’s “mooov-in” begins with early check-in at 3 PM Monday for students who paid extra, while the majority move in on Friday and Saturday, streamlining the process for thousands of incoming students.
The MLK Boulevard bridge at Interstate 35 North will be closed for 12 hours (from 10 p.m. Friday to 10 a.m. Saturday) for demolition as part of the ongoing I-35 expansion project.
WEATHER
5-DAY FORECAST / AUSTIN, TEXAS
Thanks to a wet weather pattern over the Lone Star State in early July, Central Texas had milder temperatures this summer. (Austin American-Statesman)
TEXAS DROUGHT MONITOR
Tropical Storm Erin is expected to strengthen into a powerful hurricane.
Texas House Democrats have set two key conditions for their return to the state: ending the current special session and California Democrats redrawing their congressional map to offset five potential Republican gains in Texas.
The term “gerrymandering“ originated in 1812 from a Massachusetts bill signed by Governor Elbridge Gerry, creating oddly shaped districts resembling a salamander to favor his Democratic Republican party.
Former Texas Representative Beto O’Rourke talks Ken Paxton’s calls for his arrest, anti-redistricting rallies, and how his Powered By People PAC is fighting Governor Abbott’s plan to give Donald Trump a third term.
Texas voters have mixed opinions on the state’s attempt to redraw congressional maps, according to new poll data from Emerson College on Friday.
36% of respondents support the plan while 38% oppose it. The remaining (26%) said they were unsure. (KXAN-TV)
“…it appears the once-restrained governor is now bolder than ever, loaded with an unmatched abundance of campaign cash and a determination to emerge victorious in any battle — even if it requires dipping into his own party’s legislative primaries” (Texas Tribune)
A new poll of Texas’ Senate GOP primary shows Sen. John Cornyn leading Attorney General Ken Paxton by 1 percentage point, breaking a spell of public polling that had found the incumbent trailing by wide margins. (Texas Tribune)
A Texas lawmaker slammed a U.S. representative for his use of the word “r—-ded,” a derogatory slur used against disabled people, in a social media post. (Chron)
A state judge in Texas on Wednesday ordered Texas-based Infowars’ assets to be turned over to a newly appointed state receiver, who will sell them to pay the families of the Connecticut children killed in the 2012 Sandy Hook Elementary School shooting.
Texas is seeing massive growth with AI data centers. There has been attention on their incredible energy demands; however, little attention has been paid to their equally incredible water consumption. But it’s becoming clear that if left unchecked, AI water use could impact the availability of water in drought-stricken Texas. (Texas Public Radio)
A Texas judge is set to hear arguments on a law requiring the display of the Ten Commandments in public schools.
The Texas Education Agency (TEA) is releasing long-delayed A-F ratings for more than 9,000 campuses and 1,200 school districts statewide.
Host Jody Seaborn chats with managing editor Mary Huber about the new issue of County, Texas Association of Counties‘ quarterly magazine. They cover how new state funding is helping rural counties buy ambulances, key takeaways from the 89th Legislature’s regular session and a profile of Wise County Judge and National Association of Counties President J.D. Clark. Plus, hear the story of a Texas “ghost town” that’s making plans for the future. And County’s cover stories now come with a voice.
An investigation into a suspect for computer fraud and money laundering, in part by Texas FBI agents, has led to the seizure of nearly $3 million in assets. (FOX 7 Austin)
Multiple Texas Department of Criminal Justice correctional officers were injured in a crash involving a TDCJ transport van and a pickup truck in Walker County yesterday.
SPORTS
MLB: No games Thursday for both the Astros and Rangers.
ON THE SCHEDULE
RANGERS NEWS: The Texas Rangers are running out of time in their push for a postseason spot. (Dallas Morning News)
ASTROS NEWS: Astros ace Framber Valdez is getting ready to hit the open market. (Newsweek)
AL WEST STANDINGS
COLLEGE FOOTBALL: The biggest detriment to Texas’ hopes of pushing for a top-four seed in the College Football Playoff may just be its schedule makeup. (On3)
Texas Sports Unfiltered ….. Texas Football fall camp updates…..
NBA: The San Antonio Spurs are headed back to Moody Center in February for the fourth annual I-35 Series.
Spurs Sports & Entertainment on Aug. 14 revealed that the National Basketball Association team will host the Phoenix Suns on Feb. 19 at 7:30 p.m. and the Sacramento Kings on Feb. 21 at 7 p.m. in Austin. That’s during the annual Rodeo Road Trip for the second-straight year.
Actually, today’s video is really just audio.
San Antonians remember singer-songwriter Flaco Jiménez, who died July 31, at the age of 86.
