Should Austin have a tax rate increase? Prop Q on ballot this November

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Strong opinions on Prop Q in Austin

Austin voters will have a property tax increase on the ballot this November. The city said an increased tax will help fund vital services. While some groups are campaigning for Prop Q, others are calling it wasteful spending.

Austin voters will see a property tax increase on the ballot this November. 

By the numbers:

Prop Q proposes an increase of five cents per $100 of taxable property value.

This could add about $300 a year to the average Austin homeowner's tax bill.

Council recently passed a $6.3 billion budget with a $33 million deficit. 

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City of Austin budget meeting

You could be paying more on your property taxes next year. Austin City Council is deciding if there should be a tax rate election as they work through the final budget. This comes as the city faces a deficit

"Care, not cuts," supporters say

What they're saying:

Over 30 organizations have expressed their support for Prop Q. Several unions, first responders, and social workers are campaigning for "care not cuts," urging people to vote for Prop Q in November. They say the proposed property tax rate increase protects vital services like public safety and housing. 

Waltermae Grady, a leader with VOCAL TX, has been struggling to find housing for six years. She's been on the list for rapid rehousing the whole time. 

"We already don't have enough money for that program. If we lose it, I don't even know how many more years I will have to wait," she said.

At a press conference Tuesday morning, advocates said with federal funding cuts, Austinites have to step up. 

"Our community deserves care, not cuts," Yasmine Smith, Vice-President of Justice & Advocacy with Austin Area Urban League, said. 

"For effective policies, compassionate policies, we are asking you today to go out and vote for compassion, for affective policies like housing, services, and care. We need more outreach services," Paulette Soltani, co-director of VOCAL TX, said. 

"When resources are scarce, it can be tempting hang on to what we have for ourselves, but what we can do together is much greater than what we can do as individuals," Kaiba White, climate policy specialist with Public Citizen, said. 

Opposition says it will hurt people

The other side:

However, others argue Prop Q will hurt people. 

"It's abhorrent for our seniors, people with different abilities, young families with children. I just found out the other day that my taxes would go up 300 and some dollars. I am a senior, so I get a little leeway there, but that's still a lot of money," Ora Houston, former Austin City Council member said. 

"It's wasteful spending, and they continue to do that and then trying to put that accountability on the taxpayers to pay for all the bad decisions that they've made," Susana Almanza, director of PODER, said. 

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Austin City Council sued over ballot language

Austin City Council approved a $6.3 billion budget for 2025-26 last week, but the move has been met with swift pushback.

Opponents say the city should take a closer look at spending. 

"Not everybody can afford to stay here anymore. We have to call it out. We have to hold the line. Too many people have already got pushed out," Robin Rather with the Zilker Neighborhood Association said. "It's a weird paradox because I feel like the council kind of put us between a rock and a rock. Do you want to hurt people or do you want to hurt people? That's not the way we should be going about things."

Dig deeper:

While both sides say Austin is unaffordable, their thoughts on the tax rate's effects are different. 

"It doesn't stop this year, it continues.  I think that's a real injustice, especially when a city who's trying to say they're trying to address homelessness and affordability," Almanza said.

"Cutting services is like a domino effect that will eventually lead to our city's housing crisis growing in size," Grady said. 

Travis County also recently approved a tax rate increase to help with disaster relief after the July floods. That's about $200 more for the average homeowner. That did not go to voters because of a disaster declaration. 

The Source: Information in this report comes from reporting/interviews by FOX 7 Austin's Angela Shen

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