Austin Budget Redux: Breaking Down the $109.5 Million in Cuts
How Austin’s FY 2025-2026 Budget Changed After Voters Rejected the Property Tax Increase
On November 4, Austin voters delivered a decisive verdict on the city’s budget plans: 63.48% rejected Proposition Q, forcing City Hall to slash $109.5 million in planned spending. Just three days later, city staff delivered their revised budget recommendations to the City Council, showing exactly what programs would be cut, scaled back, or eliminated entirely.
After analyzing the original approved budget and the amended recommendations, here’s the detailed breakdown of what Austin is giving up—and what it’s fighting to preserve.
The Challenge: Balancing a $109.5 Million Shortfall
Proposition Q would have increased Austin’s property tax rate from $0.4776 to $0.574017 per $100 of property value—a 5-cent increase that would have cost the average homeowner approximately $300 annually. Voters said no, and now the city must operate under the voter-approval tax rate of $0.524017.
The revised budget maintains a property tax increase, but a much smaller one: approximately $105 per year for the average homeowner instead of $300.
While the headline number is $109.5 million in lost property tax revenue, the actual General Fund reduction is $95.4 million due to some offsetting adjustments and the strategic reallocation of existing funds.
What Got Cut: The Major Reversals
Emergency Medical Services: $6.29 Million Cut (32 Positions Lost)
EMS took one of the largest hits in the revised budget:
- Basic Life Support (BLS) Unit – $1.17 million and 12 sworn positions eliminated
- Mental Health Response Units – $2.3 million cut, removing two single-response collaborative care units and 10 clinical specialist positions
- EMS Commanders – $844,800 eliminated, removing 4 sworn command positions
- EMS Communications – $861,288 cut, eliminating 4 sworn communications positions
- Associated equipment funding – $1.06 million in one-time funding for vehicles and equipment eliminated
Impact: The city will have fewer ambulances, no expansion of mental health crisis response teams, reduced command oversight, and strained communications capacity as 9-1-1 call volumes continue growing.
$6.3 million in cuts to EMS? You gotta be kidding me…
— Austin EMS Association (@AustinEMSAssoc) November 8, 2025
“We’re solving a lot of problems for the city, and it just kind of makes us feel a little bit unappreciated, honestly.” — James Monks, President of the Austin EMS Association
Fire Department: $1 Million in Direct Cuts
- Wildfire Mitigation Programs – $1 million eliminated for wildfire prevention, education, and mitigation efforts
- Firefighter Overtime – $8.26 million in one-time overtime funding cut
What was preserved: Fire staffing for the Canyon Creek station and funding for the tentative labor agreement with firefighters remain intact.
Austin Firefighters Association Local 975 responded to the revised budget:
Homeless Services: Major Restructuring ($38.2 Million in Social Services Contract Cuts)
This is where the budget gets complex. While the Homeless Strategy Office actually increased by $3.7 million in the revised budget, the overall picture for homeless services is much grimmer:
Programs Eliminated:
- New Emergency Shelter Beds – $5.12 million cut (planned case management and housing navigation for new shelter beds by 2029)
- Marshaling Yard expansion – $2.75 million eliminated (though $8 million in existing funding maintained)
- Permanent Supportive Housing Pipeline – $2.26 million cut (case management for PSH units scheduled for FY26-27)
- Street Outreach expansion – $2 million eliminated (improved engagement with unsheltered individuals)
- Community Shelters – $2 million cut (investments in non-City shelter beds)
- HSO Administrative Staff – $1.25 million eliminated, removing 12 support positions
Programs Scaled Back (but not eliminated):
- Bridge Shelter/HEAL – Reduced from $3 million to $750,000
- Rapid Rehousing Beds – Reduced from $12 million to $1 million (originally planned for 300-500 new units)
- Landlord Engagement – Reduced from $1.73 million to $600,000
- Sobering Center Expansion – Reduced from $1.06 million to $500,000
What was preserved:
- $500,000 for homelessness navigation services (new)
- $500,000 for diversion programs (new)
- $650,000 for rapid rehousing case management with 6 positions
- $27,000 for Charlie Center showers
- 8th Street Shelter operations ($3.5 million)
The Social Services Contract Realignment: The city is also reallocating existing social services funding by cutting:
- 10% ($3.8 million) from contracts managed by Public Health, Municipal Court, and Economic Development
- 4% ($1.5 million) from Homeless Strategies and Operations contracts
This $5.3 million will be redirected to the scaled-back programs listed above.
Parks and Recreation: $5.24 Million Cut (43 Positions Lost)
- Parks Maintenance Staffing – Reduced from 60 new positions to 20 positions, cutting $3.98 million
- Natural Land Restoration & Wildfire Prevention – $1.25 million eliminated, removing 3 positions
- Transportation & Programming for Older Adults – $436,412 cut
- Library Materials – $200,000 eliminated
- Bilingual STEM Program – $186,000 cut at ESB-MACC
- Bond Project Planning – $100,000 in one-time funding eliminated
What was preserved:
- $2 million and 20 positions for basic parkland and grounds maintenance (a significant reduction from the originally proposed 60 positions)
- $517,000 for annualization of 20 positions added in FY 2025
- Youth athletic fields maintenance ($375,000)
- Colony Park pool positions ($125,000)
- $100,000 and 1 position to assist with district and comprehensive plans (Planning Department)
Library preserved but trimmed:
- $400,000 added for additional security staffing at branches
- $216,000 increase for materials acquisition
- But lost $200,000 in additional materials funding that had been approved
Public Health: $1.33 Million in Direct Cuts (Plus Contract Reductions)
Programs Eliminated:
- Core Public Health Grants at Risk – $1.58 million (immunizations, STD control, disease surveillance)
- Community Violence Intervention – $1 million (trauma recovery services for violent crime survivors)
- Family Stabilization Grant – $1.3 million (economic insecurity and housing support)
- HIV/STI Community Testing – $800,000 and 4 positions
- Trauma Recovery Services – $500,000
- Domestic Violence Shelter Support – $700,000 ($350,000 ongoing + $350,000 one-time)
- Child Advocacy Services in Williamson County – $300,000
- Food Pantries at Title I Schools – $300,000 one-time
- Financial Advocacy for Seniors – $270,000
- Home Delivered Meals for Older Adults – $250,000
- Family Connects Program – $170,000 (postpartum nurse visits)
- Harm Reduction Programs – $150,000
- MPox & Other Vaccines – $50,000
- Pre-K Start-Up Costs – $42,266
- Parent Support Specialists – $619,000
Programs Scaled Back:
- Family Justice Navigation Services – Reduced from $350,000 to $250,000
Additional Cuts:
- Summer Youth Employment Program with Travis County – $114,000
- Austin Youth Development & Youth Corp – $196,068
Municipal Court: $3.74 Million Net Cut
The Municipal Court picture is complicated by the Travis County magistration agreement:
- Expanded Mobile Crisis Outreach Team (EMCOT 24/7) – $3.09 million eliminated
- Municipal Court staffing reduction – $3.5 million and 18 positions eliminated (offset by Travis County assuming magistration duties)
What was preserved:
- $650,000 for rapid rehousing case management with 6 positions
- $500,000 for re-entry workforce development (reduced from $1 million one-time request)
Planning Department: $564,628 Cut (3 Positions Lost)
- Historic Preservation Office – $439,778 and 2 positions eliminated
- Financial support position – $124,850 and 1 position cut
Other Departments
Arts, Culture, Music & Entertainment: $200,000 cut (reduced from 5 to 3 new financial/managerial positions)
Housing Trust Fund Reductions: $1.11 million total
- Emergency Rental Assistance: $400,000 cut
- Displacement Mitigation Plan: $500,000 one-time eliminated
- Tax and Estate Planning: Reduced from $750,000 to $539,601
Management Services:
- Office of Police Oversight: $260,264 and 2 positions eliminated
- Climate & Resilience Staff: $228,550 and 2 positions eliminated
- Climate Revolving/Building Efficiency Fund: $300,000 eliminated
Watershed Protection:
- Flood Insurance Assistance Program: $100,000 eliminated
Economic Development:
- Austin Civilian Conservation Corps: $864,000 eliminated
Animal Services:
- Regional Animal Adoption Services: $800,000 eliminated (mobile adoption location)
Employee Benefits Cuts
- Bad Weather Pay for Frontline Employees – $300,000 eliminated
- Part-Time Temporary Employee Benefits – $100,000 eliminated
- $500 Stipend for Non-Remote Eligible Employees – $2.3 million eliminated ($800,000 General Fund + $1.5 million enterprise funds)
What Was Preserved: The Core Services
Despite the massive cuts, the revised budget maintains several critical areas and even includes some strategic additions:
Police Department: $526 million – No direct cuts to operations (the $16.1 million accounting change reflects moving Travis County agreement costs to a different budget line, with the actual net increase being $2.5 million when factoring in Municipal Court savings)
Police operational improvements maintained:
- $9 million reduction in overtime budget (achieved through staffing model changes to increase patrol availability)
- $500,000 savings from relocating Blue Santa warehouse to city-owned facility
Library Operations: $80.1 million – Core operations maintained with improvements:
- $400,000 for additional security staffing
- $216,000 increase for materials acquisition
- Recycled Reads program expansion (with $107,000 savings from site closure)
Animal Services: $25 million – Fully maintained with improvements:
- $370,000 for 4 additional positions (2 Animal Protection Officers, Chief Administrative Officer, Financial Manager)
- Budget reallocations within department for spay/neuter and Circle C Dog Park
Forensic Science: $16.3 million – Maintained with expansion:
- $373,000 for 5 positions for the new Forensic Warehouse opening in FY 2026
Fire Core Operations: $263.4 million – Basic services maintained with key improvements:
- $5.7 million for wage adjustments under tentative Austin Firefighter Association labor agreement
- $416,000 for annualization of 16 Canyon Creek station positions
- $280,000 increase for wildfire shelters and safety equipment
- $8.3 million overtime reduction through staffing model restructuring
- $875,000 one-time funding for cadet training class
- $550,000 one-time for self-contained breathing apparatus replacements
EMS Core Operations: $148.2 million – Existing services protected:
- $338,000 for annualization of 12 Canyon Creek station positions
- 6% wage increases for sworn EMS employees per labor agreement
Public Health: $65.5 million – Core operations maintained despite program cuts:
- $3.4 million savings from moving to city-owned facility (rent reduction)
- $250,000 maintained for Family Justice navigation services
- Contract reallocations to fund higher priorities
Housing: $12.1 million – Strategic investments maintained:
- $3.7 million increase for Housing Voucher program (total increase from both General Fund and Housing Trust Fund)
- $539,601 for tax and estate planning pilot program
Homeless Services – Strategic Focus: Despite elimination of expansion programs, core operations strengthened:
- $8 million total for Marshaling Yard operations ($5M ongoing + $3M one-time)
- $3.5 million for 8th Street Shelter operations
- $925,000 and 12 positions for outreach and encampment management
- New funding for prioritized services through contract reallocation
Infrastructure Investments Preserved:
- $10 million one-time for sidewalk construction gap funding
- $686,689 for Neighborhood Partnering Program restoration (2 positions)
- Various Transportation & Public Works improvements funded through non-General Fund sources
Wage Increases for All Employees:
- 4% base wage increase for civilian employees
- $2,120 flat increase for civilian employees earning under $53,000 (in lieu of 4%)
- 6% for police officers per labor agreement
- 3% for sworn EMS employees per labor agreement
The Reserve Fund Impact
The original budget planned to transfer $40.5 million to the Budget Stabilization Reserve Fund. This transfer has been completely eliminated.
Additionally, the city will draw down reserves for critical items:
- $14.1 million from Budget Stabilization Reserve for transitional social services funding
- $2.3 million for one-time items including bond program development and fire cadet training
The result: Combined reserve balances will end FY 2026 at $233.2 million (15.7% of spending) – down from the city’s 17% policy target and $16.4 million below estimated FY 2025 levels.
What About New Investments?
Not everything was cut. Some additions made it into the revised budget:
Housing:
- $2 million increase for local housing vouchers (Housing Trust Fund)
Homeless Services:
- $500,000 for homelessness navigation services
- $500,000 for diversion programs
Infrastructure:
- $10 million one-time gap funding for sidewalk construction (maintained)
- $686,689 for Neighborhood Partnering Program restoration
The Department-by-Department Summary
| Department | Change | Notes |
|---|---|---|
| EMS | -$6.29M | 32 positions eliminated |
| Parks & Rec | -$5.24M | 43 positions eliminated |
| Social Services Contracts | -$38.22M | Massive realignment |
| Municipal Court | -$3.74M | 18 positions eliminated |
| Fire | -$1.0M | Plus $8.26M one-time overtime cut |
| Public Health | -$1.33M | Plus contract cuts |
| Planning | -$564K | 3 positions eliminated |
| HSO | +$3.70M | Net increase despite program cuts |
| Reserve Transfer | -$40.5M | Completely eliminated |
Understanding the Budget Documents
The revised budget recommendation uses a color-coded system to show what happened to previously approved amendments:
- “Maintain” (black text) – Amendments that remain funded as originally approved
- “Adjust” (blue text) – Amendments reduced from their original approved amounts
- “Reverse” (red text with strikethroughs) – Amendments completely removed from the budget
- “New” (green text) – New amendments added as part of the revision package
This visual system makes it easy to see at a glance what survived the budget cuts and what didn’t.
Key Context: Comparing to the Proposed Budget
City staff noted that comparing the revised budget to the original July Proposed Budget (before Council amendments) may be more useful than tracking every single reversal. Here’s what changed from that baseline:
Revenue Increase:
- $5.25 million in additional property tax revenue from certified rolls and the official voter-approval tax rate calculation
Net Expenditure Increases ($7.1 million):
- $5 million ongoing + $3 million one-time for Marshaling Yard emergency shelter operations
- $2 million and 20 positions for parks maintenance
- $50,150 for wage increases for employees earning under $53,000
Net Reductions ($1.8 million):
- $1.1 million reduction in Housing Trust Fund transfers
- $310,068 in youth program cuts
- $300,000 reduction in Arts department staffing (from 5 to 3 positions)
- $124,850 cut from Planning Department
- $50,783 in HSO vacancy savings
The $5.3 Million Social Services Shuffle:
Perhaps most importantly, the city is reallocating $5.3 million in existing social services contracts away from lower-priority programs to fund higher-priority homeless and re-entry services. This includes:
- 10% cuts ($3.8 million) from contracts managed by Public Health, Municipal Court, and Economic Development
- 4% cuts ($1.5 million) from Homeless Strategies contracts
This reallocated money funds the scaled-back versions of rapid rehousing, bridge shelters, landlord engagement, sobering center expansion, diversion programs, and other services that would have been fully funded under Proposition Q.
Looking Ahead: The Council Process
The City Council will consider this revised budget with the following timeline:
- November 13: Budget work session with staff briefing and five-year financial forecast
- November 18: Additional work session
- November 20-24: Potential adoption meetings (three dates posted to ensure passage by November 24)
Council members can submit their own amendments by close of business on November 14, which will be compiled and discussed at the November 18 work session. Given the scale of cuts, expect significant debate over:
- Whether EMS cuts go too far given public safety concerns
- The impact of homeless services reductions on street homelessness
- Public health program eliminations during ongoing health challenges
- Parks maintenance backlogs getting worse
- Whether deeper efficiency measures could restore some programs
The Bottom Line
The failure of Proposition Q has forced Austin to make difficult choices. The city preserved its core public safety operations but dramatically scaled back expansion plans for EMS, eliminated most new homeless services initiatives, gutted public health programs, and underfunded parks maintenance.
The budget message is clear: Austin will continue providing basic services, but don’t expect improvements, expansions, or innovative programs. The city is in maintenance mode, not growth mode.
For residents, this means:
- Longer EMS response times as the city grows without adding units
- More visible homelessness with fewer shelter beds and services
- Declining park conditions with insufficient maintenance staff
- Reduced public health programs for vulnerable populations
- A less prepared city for future challenges
The $300 the average homeowner will save annually comes with a cost—just not one that shows up on the tax bill.
“This initial budget does not meet the moment. It does not honor and respect the message voters were sending.” — Matt Mackowiak, Co-Chair of Save Austin Now
Austin City Council will meet Thursday, November 13 for a Special Called Meeting.
Read the agenda.
Analysis based on the FY 2025-2026 Revised Budget Recommendation dated November 7, 2025. Final budget subject to City Council amendments and approval.
