Broadnax Proposes $6.6 Billion Austin Budget With Tax Hikes, Service Cuts

Austin City Manager T.C. Broadnax released a proposed $6.6 billion budget on Friday that includes higher property taxes for the average homeowner while trimming funding for social service contracts, parks and public health programs.

The spending plan arrives months after voters rejected Prop Q, which would have raised property taxes, forcing city leaders to confront ongoing revenue shortfalls without that additional income. Broadnax described the proposal as an effort to focus on core services and quality of life investments while avoiding further burden on taxpayers.

Budget Pressures After Prop Q

City staff have cited property tax caps, slower sales tax collections and the loss of federal pandemic aid as key factors tightening Austin's finances. Following the Prop Q defeat, the council already removed $95 million from the prior budget, which reduced support for parks, homelessness services and emergency rental assistance. Many nonprofits holding city contracts absorbed a 10 percent funding cut at that time.

Officials had warned of an additional $16.8 million reduction from the city's roughly $75 million social services portfolio, but the new proposal scales that back to a $5.1 million cut aligned with a City Council framework adopted in February. That framework ranks legally required services first, then examines overlapping programs, performance and equity factors. Travis County's Sobering Center faces the loss of about $3 million in ongoing city support under the plan.

Next Steps for Council Review

Broadnax told council members the budget balances reductions with selective expansions in areas residents rely on most. The proposal now moves to the Austin City Council for weeks of review, where members will decide which services to keep, where deeper cuts may occur and how to address demands for restraint alongside resident needs.

Nonprofits already strained by earlier reductions and federal funding losses have expressed concern about further trims. The full document is available on the city's budget site at austintexas.gov, and residents can follow upcoming council discussions at City Hall for details on specific contract and program changes.

Source: austincurrent.org/2026/07/10/austin-budget-taxes-cuts/