May 26, 2026
city hall

Austin City Council’s First Meeting After Prop Q Defeat: Getting Back to Business

Council Tackles Routine Agenda While Facing Budget Reckoning

The Austin City Council returned to work on Thursday for their first meeting since voters overwhelmingly rejected Proposition Q by a margin of 63% to 37%. The decisive defeat of the property tax increase—which would have raised approximately $110 million annually for city services—sent a clear message about fiscal restraint. Yet despite looming budget challenges, the Council pressed forward with a full agenda of essential city business.

Understanding Prop Q’s Defeat

Austin voters rejected the controversial city-backed plan to raise more than $100 million in property tax revenue to pay for homeless services and other city projects, with preliminary results showing 63% of Austinites voted down the measure. The proposition would have increased Austin residents’ property taxes by five cents per every $100 in value and could have cost the average homeowner about an extra $300 a year.

Mayor Kirk Watson acknowledged that “voters prioritized affordability” and noted residents’ concerns about their finances, grocery and utility bills, and property taxes. Opposition leader Matt Mackowiak of Save Austin Now characterized the result as a “taxpayer revolt”, calling for an audit of the city’s budget and improved services.

What the Council Accomplished

Despite the electoral rebuke, the Council handled substantial city business across multiple areas:

Community Services and Mental Health The Council approved several interlocal agreements focused on diversion and social services, including extending a mental health diversion pilot program with Integral Care through December 2026 and establishing a five-year community service collaboration with Travis County Community Supervision. They also approved governance changes for the Austin-Travis County Sobriety Center.

Major Infrastructure Contracts Several significant service contracts received approval:

  • A $12.2 million elevator and escalator maintenance contract for Austin Aviation
  • A $13.2 million enterprise-level Geographic Information System licensing agreement for the city’s technology infrastructure
  • A $3.6 million electrical switchgear maintenance contract for Austin Energy and the airport
  • Emergency chilled water line repairs totaling over $1.2 million

Environmental and Fleet Management The Council authorized contracts for carbon credit broker services worth up to $1 million and approved maintenance agreements for city fleet vehicles, including refuse collection trucks and vacuum equipment.

Police Department Funding Two federal grants were accepted for the Austin Police Department: $175,000 for a youth-led recruiting model project and $200,000 for mental health and wellness initiatives—both from the U.S. Department of Justice with no city match required.

Housing Initiatives Despite budget pressures, the Council moved forward on housing matters, including a $350,000 contract for a Colony Park displacement mitigation strategy and multiple resolutions strengthening tenant protections and compliance requirements for properties receiving city rental housing assistance.

Homelessness Response In a particularly notable action given Prop Q’s focus on homelessness funding, the Council approved (as amended) a resolution directing the City Manager to develop a comprehensive plan to prioritize and expand street and community outreach for individuals experiencing homelessness, with emphasis on healthcare services and housing connections. They also approved creation of a homeless encampment management dashboard and reporting process.

Judicial and Administrative Appointments The Council handled important governance matters, including appointing municipal court judges, reappointing members to various retirement system boards, and—significantly—appointing a new City Auditor with established compensation and benefits.

Zoning Matters Several zoning cases that appeared on the agenda were postponed to future meetings, though the Council did approve second readings for some neighborhood plan amendments and rezoning cases that had been previously considered.

Austin Housing Finance Corporation The Council recessed to conduct AHFC business, including authorizing payment of approximately $2.4 million to complete acquisition and repairs of Villa del Rey, a multifamily apartment complex.

City Services

The Elephant in the Room

While the November 6 meeting proceeded with seemingly routine business, every decision now occurs under the shadow of the city needing to find $109.5 million less revenue than budgeted for the 2025-26 fiscal year.

City Manager T.C. Broadnax initially proposed two budget options in August: one that would work without a voter-backed tax increase and another accounting for revenue generated by Prop Q. Watson said the Austin City Council would take another look at that initial budget and anticipated “that should be done soon,” while also suggesting the council take a harder look at Austin’s spending habits.

Council Member Marc Duchen, the lone vote against the tax rate election plan, called the rejection “a referendum on trust” and echoed Watson’s call for a clear-headed appraisal of spending at City Hall.

WATCH THE ENTIRE CITY COUNCIL SESSION:

What Comes Next

The work accomplished yesterday represents business as usual on the surface, but the context has fundamentally changed. The Council must now:

  1. Revise the FY 2025-26 budget to account for the $109.5 million shortfall created by the lower tax rate triggered automatically by Prop Q’s defeat
  2. Rebuild public trust through the audit process Watson committed to rolling out to “assess and optimize our service delivery and financial systems”
  3. Demonstrate fiscal discipline while maintaining essential services that residents expect and depend upon
  4. Make difficult prioritization choices about which programs can continue and which must be scaled back or eliminated

Thursday’s agenda showed a Council committed to continuing the work of governing—processing grants, maintaining infrastructure, supporting vulnerable populations, and managing city operations. But every contract approved, every initiative funded, and every decision made now occurs against a backdrop of heightened scrutiny and reduced resources.

Nearly 172,000 people cast ballots on Proposition Q, representing an unusually high turnout for an off-year election and demonstrating how deeply residents care about the city’s fiscal direction. The question facing this Council is whether they can deliver on the voter mandate for fiscal restraint while still addressing Austin’s pressing challenges in homelessness, public safety, infrastructure, and quality of life.

The real test begins not with this first post-election meeting, but in the budget revision process ahead. How the Council reconciles competing priorities with constrained resources will determine whether they’ve truly heard the message voters sent on November 5th.

The complete agenda and action items from the November 6, 2025 Austin City Council meeting are available on the City of Austin website.

The Austin American-Statesman obtained an email showing that City Council staffers were recently instructed to attend a “refresher course” covering official city policy on credit card and travel expenses. This directive was issued on Wednesday, only days after the Statesman published an investigation detailing questionable spending by council members, with several instances likely made in violation of city rules. (Austin American-Statesman)



Two Travis County property owners—Lago Vista Mayor Shane Saum and former Austin mayoral candidate Jeffrey Bowenfiled a lawsuit against Travis County commissioners, alleging they exceeded their authority by raising property taxes by $42 million following July 4th weekend flooding that caused only $20 million in damages. The plaintiffs argue that the commissioners improperly used the state’s Disaster Tax Law to bypass voter approval requirements and collect roughly $22 million more than necessary for the actual flood response, with commissioners justifying the excess funds as needed to refill county reserves and prepare for future disasters rather than just addressing the immediate flooding event. (Austin American-Statesman)



Austin-Bergstrom International Airport has dealt with five ground delays since the federal government shutdown began on October 1. On Monday, the airport experienced a ground stop lasting over an hour followed by a five-hour ground delay, with departures delayed an average of 58 minutes and a maximum delay of 142 minutes, all due to staffing shortages.

LIVE LOOK AT AUSTIN-BERGSTROM AIRPORT:

CBS Austin

The federal government shutdown is now in its 38th day, and AUS is experiencing continued flight delays and ground stops caused by low staffing among air traffic controllers who are working without pay.

CBS Austin

While Austin is not on the list of 40 airports where the FAA plans to cut up to 10% of flights, 35 of those 40 affected airports have direct flights from Austin, which could impact connections. On an average day, more than half of the flights at ABIA are either coming from or going to one of the 40 airports on the FAA’s list. (KUT 90.5)

ABC 6 News

Travel experts recommend booking direct flights when possible, purchasing travel insurance, and arriving early to the airport as the shutdown continues with no immediate resolution in sight.

DALLAS

CBS Texas

HOUSTON

KHOU-TV


Austin residents will see some increases for several different department fees on their utility bill. The new rates went into effect on November. They were approved by City Council in August.

FOX 7 Austin


About 60 parents signed up to speak on Thursday at a board meeting on the school boundary and consolidation changes.

KVUE-TV


The jury trial of Austin police officer Daniel Sanchez opened Thursday with prosecutors and defense attorneys offering starkly different accounts of the fatal 2022 shooting of tech entrepreneur Rajan Moonesinghe — each focusing on whether Moonesinghe posed a real threat and whether Sanchez’s split-second decision to fire was justified.

KVUE-TV


A second mosquito trap tested positive for West Nile Virus in Hays County.

The trap sample came from the 78676 ZIP code area of Hays County — unincorporated area of Wimberley. It was collected on Tuesday.



Austin police are asking for help identifying the suspect in an H-E-B robbery in North Austin last month.

In another case, police are asking for the public’s help identifying a suspect who allegedly stole an electric bike from a home in north Austin earlier this week.

CBS Austin

In Cedar Park, authorities arrested several juveniles wanted in connection with a series of crimes.

APD is looking for a suspect accused of making fraudulent purchases at a local H-E-B.

Capitol Area Crime Stoppers announced the capture of a wanted fugitive.



Travis County residents with property tax and exemption questions in the wake of July’s devastating floods can get answers from The Travis Central Appraisal District and Travis County Tax Office.



PODCAST

Central Texas Food Bank told CBS that they are spending almost their monthly budget every week to keep up with the demands for food due to the government shutdown. Could Gov. Abbott do more to support Texans in crisis? On this week’s Friday News Round Up, host Nikki DaVaughn chats with Hey Austin newsletter editor Kelsey Bradshaw and producer Elissa Castles to unpack the growing food insecurity facing Austinites as SNAP benefits arrive late.

Plus, we break down why AISD is pumping the brakes on some of its proposed changes to shore up their $19.7 million budget deficit, and what’s next in the ongoing Cheer Up Charlie’s saga. 



One person was rescued after officials said they were “struggling in the water” near Mayfield Park and Nature Preserve on Thursday afternoon.



A rollover accident sent a car into a creek around 7:00 a.m. this morning in Del Valle.

No other information at this time.



The Texas Book Festival is this weekend along Congress Avenue downtown.

That means traffic changes.



IBM will spend $40 million on a move into Building 12 at The Domain.

Photo: TIER REIT

Also, Westin Hotels at The Domain is adding more guest rooms which will make it the city’s largest Westin and the largest hotel in the retail complex. (Austin Business Journal)

Westin at The Domain.


The fledgling University of Austin (UATX), founded by critics who argue traditional colleges have grown hostile to free speech and merit, just received a massive boost: a $100 million gift from billionaire Jeff Yass. Yass, known for backing private school voucher efforts, made the donation to permanently provide free tuition for students. UATX announced the gift last month, naming Yass as the donor in a subsequent news release on Wednesday. (KUT 90.5)



WEATHER


THURSDAY’S HIGH / LOW TEMPERATURES

AUSTIN-BERGSTROM INTERNATIONAL AIRPORT

CAMP MABRY



5-DAY FORECAST / AUSTIN, TEXAS

Will today be a record-breaker for high temperature on this date?

The record for November 7 is 89 degrees. Today’s low 90s would not only break the daily record but potentially be the hottest temperature ever recorded in the entire month of November for Austin.

AccuWeather/Austin

KXAN-TV

On May 28, a powerful thunderstorm dubbed the “May Microburst” ripped through the area, unleashing 90-mph winds and 1.5-inch (ping-pong ball-sized) hail. Austin Energy has since released an After-Action Report based on its assessment of the resulting damage and response efforts. (KXAN-TV)




GOVERNMENT SHUTDOWN: DAY 38

House Speaker Mike Johnson on Thursday said he was ‘less optimistic than I was this morning’ about ending the government shutdown soon.

MSNBC
The National Desk

Vice President JD Vance criticized the judge’s ruling.

The National Desk/

While the Trump administration and the courts do battle over SNAP payments, various entities, including food pantries, churches, community fridges, and mobile sites, are providing complimentary groceries and meals across Texas(FOX 7 Austin)



Texas Attorney General Ken Paxton has filed a lawsuit against popular online gaming site Roblox, claiming the company behind it is putting “pixel pedophiles and profits” over children’s safety. (FOX 7 Austin)



The Fifth Circuit Court of Appeals’ ruling suggested not all drag shows are sexually explicit. (Texas Tribune)



A UPS cargo plane that crashed and exploded Tuesday evening at Louisville Muhammad Ali International Airport, killing at least nine people, had spent the majority of September and half of October in San Antonio. (WOAI-TV)

One of the members of the crew aboard the UPS cargo plane that crashed in Louisville was from Central Texas and previously served as the commissioner and chief of Bastrop County Emergency Services District No. 1.

KVUE-TV


Texas is asking for $1 billion in federal funding to address rural health care needs. (Texas Public Radio)



A recycling facility in Waller County owned by Waste Management‘s plastics division has laid off 88 employees after temporarily suspending operations—less than a year after opening. (Houston Chronicle)



Elon Musk is officially a trillionaire.

KXAN-TV



THE WEEKLY ROUNDUP

Election Day Arrives in Texas with Special Elections, Constitutional Amendments, Bond Proposals on Ballot

All 17 Texas Constitutional Amendments Pass, Including Bail Reform, Water Fund, Tax Exemptions

‘This is a Blowout Victory’: Austin Voters Stamp Out Tax and Spending Increase

Pro-Casino, Anti-Gambling Interests Go All In on Texas Senate Special Election

Wambsganss, Rehmet Head to Runoff in Texas Senate District 9 Special Election

Amanda Edwards, Christian Menefee Head to Runoff in Houston Congressional District Special Election

Bexar County Voters Approve Venue Tax Raise for New San Antonio Spurs Downtown Arena

Cruz Calls for Federal Judge Boasberg’s Impeachment Over FBI ‘Arctic Frost’ Investigation

Bell County Treasurer Candidate Promises to Eliminate Office, Following Galveston County

New York Judge Dismisses Paxton Legal Challenge Against Abortion Pill Doctor

Sinaloa Cartel ‘Boss’ Captured in Mexico by Federal Task Forces in Collaboration with Texas DPS

University of Austin to Offer Free Tuition After $100 Million Jeff Yass Donation

At stake? Prices for consumers, billions in business activity, and the scope of presidential power. A Texas perspective as the U.S. Supreme Court takes up the case against President Trump’s tariffs.


The Wall Street Journal says “Amazonification” has come for Texas-based Whole Foods. A look at what that means.


Look! Up in the sky! Is that thing still legal? Texas drone pilots are closely watching talk of new restrictions. Tech expert Omar Gallaga tells us what’s up.


And Texas director Richard Linklater’s new film “Nouvelle Vague” is a loving ode to French New Wave cinema.

(Episode from November 6, 2025)



KENS-TV


SPORTS


COLLEGE BASKETBALL: Rashaun Agee scored 16 points, Rylan Griffen scored 14 and Texas A&M opened it up in the second half to beat Texas Southern 104-70 on Thursday night. (Yahoo! Sports)

Texas A&M Athletics

Tonight, the Red Raiders of Texas Tech

The Texas Longhorns are next in action tomorrow.



COLLEGE FOOTBALL: Another bye week for No. 12 Texas. They are preparing for Georgia on November 15.

Texas Football NEEDS Help During Bye Week | LIVE | 11/7/25

Texas Sports Unfiltered

HIGH SCHOOL FOOTBALL

  • Austin LBJ 58, Eastside 6
  • Cibolo Steele 42, Buda Johnson 7
  • Del Valle 27, Akins 20
  • Lake Travis 40, Austin High 14
  • Weiss 28, Anderson 7
KXAN-TV

It’s the final Friday night of the high school football regular season.

KXAN-TV


NHL: The Dallas Stars lost at home last night.

Leo Carlsson’s short-handed goal midway through the third period proved to be the winner as the Anaheim Ducks rallied to beat the Dallas Stars 7-5 on Thursday night. (Yahoo! Sports)

National Hockey League

ON THE SCHEDULE

STANDINGS




The Daytripper heads to Rusk, a hidden gem in the Piney Woods where history, nature, and barbecue come together in one unforgettable day.

The Daytripper via YouTube

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