A politically created affordability crisis in Texas’ capital city is poised to worsen, even as the Texas Legislature is set to address local government spending statewide.
On Friday evening, Austin’s city manager released a $6.3 billion budget proposal. This represents a nearly seven percent increase from last year’s previous record of $5.9 billion, and a nearly 15 percent increase from 2023’s record of $5.5 billion.
As a matter of perspective, Austin’s budget was $4.5 billion in 2021 and $3.3 billion in 2013. If adopted as proposed, this budget would represent a near doubling in just over a decade.
Mayor Kirk Watson said the proposed budget includes “several important items” that he believes “will help our city move forward and deliver Austinites the services they deserve.”
As proposed, Austin’s budget contains a record-setting $51 million for vagrancy services, a 42 percent increase from the last budget, with thirteen additional staff positions.
The proposal also includes significant increases in various race-based programs, including a nearly 40 percent increase for the “Office of Equity and Inclusion” and a nearly 20 percent increase for the “Small and Minority Business Resources Department.”
Meanwhile, the city proposed a modest cut to the Austin Police Department’s overtime budget.
The proposed budget comes as the Texas Legislature will consider local government expenditures during its upcoming special session.
Gov. Greg Abbott included “legislation imposing spending limits on entities authorized to impose property taxes” in his call for the special session.
“Austin’s appetite for Other People’s Money is insatiable,” James Quintero of the Texas Public Policy Foundation told Texas Scorecard. “State lawmakers must get serious about local government fiscal discipline. It’s time to consider everything from local spending limits to debt limits to balanced budget requirements and even a stronger property tax revenue limit. Everything should be on the table.”
Austinites will have several opportunities to weigh in on the proposed budget between July 22 and August 7. The Texas Legislature is expected to announce hearing dates for consideration of local spending caps shortly as the special session begins Monday, July 21.
