Voters in the City of Austin declined to approve a record property tax hike.
Mayor Kirk Watson acknowledged the loss Tuesday evening and noted that voters “prioritized affordability.”
Proposition Q would have raised nearly $110 million for homelessness programs, public safety, and other city services by raising city property tax bills 20 percent.
City officials argued the increase was needed to offset a budget shortfall and avoid cuts to frontline services, but critics questioned the city’s financial discipline and the affordability impact on regular residents. Notably, the city budget has nearly doubled over the past decade.
“They’re [voters] worried about their finances, their grocery and utility bills, their property taxes, and more,” stated Watson. “We need to give voters reason to trust us—to trust that we will strike the right balance between services and the funding needed to provide those services.”
Opposition to the hike was broad across nearly all precincts as residents expressed concern about increased costs for homeowners, renters, and businesses, as well as skepticism about whether additional spending would deliver meaningful improvements in city services.
With the measure’s rejection, the city manager is expected to deliver a new budget proposal to the city council, adjusting priorities and finding savings to account for less in tax dollars.
