Austin Council Withdraws IT Consolidation Resolution After City Manager Pledges Transparent Rollout

Austin City Council Member Mike Siegel withdrew a resolution Wednesday night that sought to halt the city’s controversial IT consolidation plan after City Manager T.C. Broadnax pledged a more deliberate and transparent rollout following months of pushback from city workers.

The plan has sparked a heated and drawn-out fight between the city and its employee union, which argues the consolidation could weaken department expertise and disrupt public services.

The reorganization would move IT employees from city departments into one centralized Austin Technology Services department, which city leaders say would reduce duplication and improve efficiency.

The proposal stems from an external audit that found Austin’s IT spending exceeds peer-city benchmarks by 81% — about $201 million more than comparable cities — while staffing levels are nearly double those of similar governments.

“City staff remain committed to a transparent and well-coordinated consolidation process and will continue to keep the City Council, departments, and employees informed as work progresses,” Broadnax wrote in a Wednesday memo.

He assured the council that staff would move carefully and continue consulting employees and departments throughout the process.

Council members asked city staff to consider a hybrid structure that would keep some IT staff embedded within departments instead of moving all technology workers into a centralized office.

Broadnax said departments already maintain some independence over IT operations, but the decentralized structure has also created overlapping software systems and inefficiencies.

City staff will evaluate different organizational models and provide the council with additional research and case studies on each approach, he added.

Broadnax said the consolidation would not affect employees’ pay, benefits or seniority. Austin Technology Services will continue reviewing IT job titles and classifications with Human Resources and department leaders.

Siegel, who authored and later withdrew the resolution seeking to halt the consolidation, called the city manager’s memo outlining a more deliberative rollout a victory for city workers in a Wednesday news release.

“It was brave City workers who raised their voices in objection to a massive and rapid reorganization of technology services, and who won significant victories to limit the scope and pace of the effort,” he said.

The city workers’ union has protested the consolidation since early March.

In April, Broadnax announced that the reorganization would exempt operational technology positions, which work directly with equipment that keeps physical city operations running — a move the union called a “partial retreat.”

Union Vice President David Cruz said in a statement that while the union appreciated the council’s receptiveness, members were disappointed the city will proceed with the first phase of the consolidation, which would reassign 189 employees into Austin Technology Services.

“We will continue to hold leadership accountable for this misguided plan that puts public services, safety, and data at risk,” he said.

Chief Financial Officer Ed Van Eenoo said in a prepared statement that the city will continue approaching the consolidation transparently while considering the needs of city departments, employees and the community.

“Our approach reflects the input we’ve gathered from employees, departments, and the City Council,” he added. “We will continue listening, collaborating, and considering feedback as we move forward.”