Austin’s municipal government is poised to cut its social services budget by approximately $5.3 million.

According to a memo from City Manager T.C. Broadnax, the city plans to “reallocate” social services contracts from a series of city departments. Affected departments include economic development, homeless strategies and operations, Austin community court, and public health.

The $5.277 million in proposed reductions represents a .0825 percent decrease from the record-setting $6.3 billion budget the city council passed in August.

This curtailment follows the landslide defeat of Proposition Q last November. Had it passed, Proposition Q would have represented a record-setting tax increase.

The council had previously approved $95 million in emergency budget cuts following Prop Q’s defeat.

The reductions come as a coalition of citizen groups has launched a petition drive to amend the city charter, requiring an independent audit of municipal finances before any future tax increases. If successful, this petition drive would place the proposed charter amendment on the May 2026 ballot.

Organizers need to collect 20,000 valid signatures to place this measure on the ballot. Activist group Save Austin Now stated in a December 30 email that the coalition had collected “5500+” of those signatures thus far.

City staff will provide an update to the city council’s public health committee on February 4.

Adam Cahn

Adam Cahn is a journalist with Texas Scorecard. A longtime political blogger, Adam is passionate about shedding light on taxpayer-subsidized higher education institutions.

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