The video accompanying this story aired on November 5, 2025.
AUSTIN (KXAN) — The Austin City Council received a new version of the city’s fiscal year 2026 budget from the city manager’s office on Friday, days after voters rejected their request to increase property taxes to fund the budget they approved in August.
In a Post on the council message board On Thursday, Austin Mayor Kirk Watson said he spoke with City Manager TC Broadnax and his staff about the budget.
“Voters have told us that city government cannot be all things to all people. We cannot afford all the expenses, grants and needs that are not covered by other levels of government, even if they are for things we think are important,” he wrote. “Voters want us to avoid adding to Austin’s unaffordability. Well, as I said this week — message received.”
His post also said the city hired IT consulting firm Gartner Consulting “to evaluate the city’s structure for delivering these services with the goal of finding ways to increase the value of technology across government.” Watson also said reforming council spending was important.
“If we are to ensure trust, it is extremely important for us to be a model of best practices and a place that sets the highest standards. I intend to present ideas to the full council for a new policy at the November 20 meeting,” he wrote.
The post also stated that the budget will be released on Friday. KXAN received a copy on Sunday.
What’s happened to Austin’s budget so far?
Broadnax released his office’s preliminary budget for fiscal year 2026 in July. The city’s general fund was set at $1.5 billion. The remaining $4.5 billion in the budget was tied to the city’s enterprise funds, which are not paid for with tax revenue.
The initial budget used a 3.5% tax rate, which would not have required asking voters to approve a rate increase.
Some City Council members said they believe the initial budget cut too many city services. Mayor Pro Tem Vanessa Fuentes called it a “Band-Aid Budget, a budget with Band-Aid solutions.” The council’s concerns prompted them to consider proposals for tax rate elections.
In August, the council voted to approve the budget. This also led to Proposition Q, which asked voters to approve a $0.05 property tax rate increase.
On Tuesday, voters rejected the tax rate increase.
What is in the amended budget?
The newly released budget is 16 pages long. The previously approved budget was more than 1,300 pages.
In the previous budget, the council intended to allocate additional revenue from Prop Q toward the city’s Homeless Strategy Office, EMS, parks, sidewalks, and Austin Fire overtime.
KXAN plans to provide an in-depth look at the revised budget as it works its way through the board. But for now, you can view the new budget here.
When will the budget process end?
With the revised budget in council’s hands, they will likely follow the timeline Watson laid out on Thursday:
- November 13: Budget work session where Broadnax will present the budget
- November 18: Budget work session
- November 20: Possible adoption of the new budget
If necessary, the Council will hold special sessions on November 21-24.