Austin Panel Approves Rubric for Social Service Cuts

Austin’s public health advisory panel on Wednesday approved a rubric to help the city distribute nearly $17 million in cuts to social service contracts in its next budget.

This follows a $5.28 million reduction in the current budget for services ranging from homelessness to youth development programs, which surprised even the largest providers.

In a December memo, City Manager T.C. Broadnax disclosed an anticipated additional $16.8 million reduction for the next fiscal year.

City staff presented an analysis showing Austin relies almost exclusively on the general fund for social service contracts, unlike peer cities such as Dallas, Houston, San Antonio, Denver, and Portland, which use diverse funding streams. The disparity is notable in homelessness, behavioral health, health equity, and HIV services.

The analysis found 85% of Austin’s general fund spending goes to social services, compared to 66% in San Antonio, the next highest.

Assistant City Manager Stephanie Hayden-Howard attributed the high percentage to years of council decisions aimed at meeting "great need" and filling gaps, noting that nonprofits often turned to the city when other entities cut funding.

The rubric recommended by the panel will weigh factors like whether a service "provides a need essential for human life," avoids costs to other departments, offers a return on investment, and meets contract goals. It also directs the city manager to explore sustainable funding sources and conduct stakeholder feedback sessions.

City staff will begin budget development in spring, with a proposal going to the City Council for deliberation. The 2026-2027 budget will be adopted in mid-August.