Austin City Council passes $6.3B budget for 2025-26, approves tax rate election

AUSTIN, Texas - Austin City Council has voted to approve its $6.3 billion budget for 2025-26. 

On Thursday, August 14, the vote was 10-1 to approve the budget with one "no" from District 10 Council Member Marc Duchen.

Tax rate election

With the approval of the budget, the council will also pursue a tax rate election for a 5-cent increase per $100 on your property taxes. 

That would add up to about $25.22 per month in property taxes for the average Austin homeowner, compared to FY 2024-25.

The tax rate election, the council said, will help address a $33.4 million structural budget deficit.

If the tax rate is approved by voters in November, it would "sustain effective city services and ensure long-term operational stability. The adopted budget preserves essential functions while investing in public safety, parks, public health, infrastructure, housing stability, and affordability."

Notable budget investments

Austin City Council released its major and notable budget investments for the budget. It includes:

• New firefighter positions and training, enhancing coverage in high-need areas and preparing our workforce for future public safety needs.
• Wildfire safety gear and equipment upgrades, protecting frontline responders and increasing our capacity to manage climate-related fire threats.
• Additional EMS ambulance staffing and command support, ensuring faster response times and expanded coverage citywide.
• Investment in EMS communications and navigation teams, enhancing coordination and improving patient outcomes in emergency situations.
• 24/7 mental health response services, expanding access to immediate care for residents in crisis and relieving pressure on traditional EMS and hospital systems.
• Increased parks funding for maintenance and youth athletic field upkeep, making our shared green spaces safer and more accessible for families across Austin.
• Wildfire mitigation efforts, investing in proactive strategies to prevent catastrophic fires and protect our most vulnerable neighborhoods.
• Restoration of core public health programs, from immunizations to HIV and STI prevention, ensuring no interruption in essential services for our most vulnerable residents.
• Displacement prevention efforts, including eviction assistance and mediation, to keep families housed and rooted in their communities.
• Flood insurance pilot support, helping families stay protected as climate impacts intensify.
• Community violence intervention and domestic violence supports, creating safer neighborhoods and pathways to healing.
• Trauma recovery and family justice services, centering survivors with compassionate, coordinated care.
• The Family Stabilization Grant, extending direct financial assistance to families navigating economic hardship.
• Funding for a regional animal adoption center, easing overcrowding and improving outcomes for pets and people alike.

Austin City Council members react

Austin Mayor Pro Tem Vanessa Fuentes, District 2: 

"This budget reflects a simple belief that local governments can, and should, be a force for good. Today, the City of Austin is leading with a commitment to serving its people, whether you’re an Austinite needing a quick EMS response during an emergency, a child thriving in a well-maintained park, a city worker striving to live in the community they serve, or a struggling family seeking financial stability.

While the federal government abandons the American people, we’re moving forward with decisive action. We’re strengthening life-saving services, and fully supporting our public health programs, emergency services, parks, and addressing homelessness with proven, practical solutions.

Because when you call 911, you deserve a fast, effective response. When extreme weather strikes, you deserve a city that helps you protect your home. When you walk into a clinic, you deserve access to care that meets your needs. And when you reach your retirement years, you deserve to age with dignity and security. These are the needs we are prioritizing in this budget.

But the work is far from over. In November, Austin voters will decide whether to fund many of these critical services through a Tax Rate Election (TRE). This TRE is the direct result of a failed federal economic agenda, deep federal funding cuts, and state-imposed limits that block cities from fully supporting the services our communities rely on.

Austin has always been a city that cares, a city where we step up for our neighbors, through thick and thin. And if federal and state leaders won’t show up for Austin, we’ll show up for each other."

Austin City Council Member José Velásquez, District 3: 

"Today’s decision was guided by our obligation to protect our most vulnerable neighbors in the face of an extremely challenging budget deficit. This decision wasn’t easy to make, but it was the right one. It was a careful, necessary balance between ensuring that we fund critical community supports, while not overburdening those most at risk of displacement.

I’m proud to have advocated for our schools, for health and safety initiatives and programming, for our unhoused neighbors, for our essential workers, and for services that we know thousands of Austinites depend on every day. We thank the advocates, our City staff, and every individual who made their voice heard.

Together, we are redefining what essential services mean to this city. These are not only investments, but commitments to the communities we were elected to serve."

Austin City Council Member José "Chito" Vela, District 4: 

"With today’s budget vote, the Austin City Council is protecting essential services and investing in programs that ensure fast and effective emergency response, maintain safe and vibrant parks, strengthen public health programs, address homelessness and expand affordable housing.

These investments meet today's community needs while responsibly planning for tomorrow. In November, voters will decide on a Tax Rate Election that will allow us to sustain and grow these critical services.

Austin is showing that when challenges arise, we step up for one another—and for the city we proudly call home."

Austin City Council Member Ryan Alter, District 5: 

"This year’s budget process has been the toughest I’ve ever seen. Washington is slashing funding. The state keeps attacking cities like ours. But my colleagues and I didn’t back down. We stood up for Austin.

Instead of giving in to cuts and austerity, we’re investing in what matters: tackling homelessness, expanding public health services, keeping our parks clean and green, fighting climate change, building more affordable housing, and making our city safer for everyone.

This is a budget that reflects our values—and I’m proud to bring it to the voters this November. We need everyone's voice, vote, and commitment to this community to keep Austin moving forward. Now it's time to come together, protect what we love, and build the future our community deserves."

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