City of Austin Adopts FY 25–26 Budget – Includes Housing, Public Safety, and Community Funding
On August 14, the Austin City Council approved the FY 25–26 budget, alongside a Tax Rate Election (TRE) that would increase the property tax rate by 5 cents above the legally allowed cap.
The $6.3 billion budget was one of the most challenging in Austin’s history, driven by a significant deficit caused by:
- The loss of federal funding (American Rescue Plan Act and other grants)
- Declining sales tax revenue
- Lower residential and commercial property values
Approval followed months of community engagement, including numerous town halls, surveys, and hours of public testimony. Council deliberations were complicated by the deficit, disagreements over the tax rate, and competing priorities, leading to frequent recesses and lengthy debate.
One of the most contested issues was firefighter staffing per truck. City staff proposed reducing the requirement from four firefighters to three to cut overtime costs, a change that generated considerable pushback. Other key debates focused on animal services funding and park maintenance.
As the council reached consensus on the tax rate, members adjusted or withdrew earlier budget amendments to settle on the final adopted budget.
If voters approve the TRE this fall, notable budget investments will include:
- Permanent Supportive Housing wraparound services
- Funding for the 8th Street Shelter and Marshalling Yard Emergency Shelter
- Rental assistance and displacement prevention, including eviction assistance and mediation
- Austin Infrastructure Academy funding
- New firefighter positions and wildfire safety gear
- Additional EMS ambulance staffing and investments
- 24/7 mental health response services
- Increased parks maintenance funding
- Community violence intervention, domestic violence support, trauma recovery, and family justice services
If the TRE fails, the city will be required to make budget reductions. The Chief Financial Officer will determine these cuts, which are likely to begin with council-added items not included in the base budget. Many of these additions rely on reserves that would only exist if the TRE passes.
Austin voters will decide on the TRE during a special called election on November 5, 2025. The deadline to register to vote in this election is Monday, October 6, 2025. You can check your registration status through the Texas Secretary of State’s My Voter Portal.