Privileged Austin's Property Tax Grab Props Up Cops Who Oppress

Austex Tax Grab: Abbott, Not City Council to Blame for Budget hits on Working Families

URL: https://services.austintexas.gov/edims/document.cfm?id=432211

The average Austin, Texas, homeowner will be hit with a $272 annual increase in property taxes and utility fees under City Manager T.C. Broadnax's proposed budget. This is a direct result of the Republican-led legislature and Gov. Greg Abbott's sustained attacks on progressive funding initiatives.

Budget Increases Hit Working Families Hardest

• Property Taxes: Up $102
• Water Bills: Up $74
• Energy Bills: Up $32

Police Budget Ballooning

In a city with a recent history of challenging police budgets, Broadnax is proposing an $18.2 million increase to the Police Department's budget, taking the total to over $496 million. This comes amidst ongoing contract negotiations and staff shortages. The Police budget has increased every year since 2021 when Gov. Abbott signed a law barring budget cuts in this area.

Minimum Wage Increases: A Drop in the Ocean

Broadnax proposes a 4% across-the-board wage increase for city employees, with a minimum wage of $21.63 per hour. While this is a positive step, it's a drop in the ocean compared to the rising costs of living in Austin, driven by these very tax increases.

State Property Tax Caps Strangling Austin

The root cause of these budget hikes is the 2019 state law, also signed by Abbott, capping property tax rate increases at 3.5%. Prior to this, Austin had a rate near the previous 8% cap. Austin's Mayor, Kirk Watson, has stated that without this restrictive law, the city would have an extra $165 million to address community needs.

The proposed budget manages to balance revenue and expenses for the next 2 fiscal years, with only minimal service reductions. However, the city's financial staff predicts a general fund deficit of $11.2 million for fiscal 2028-29.

This budget proposal reflects the difficult position Austin is in due to state-imposed restrictions on tax rates. "We will continue to seek ways to balance our budget without cutting services," said Ed Van Eenoo, the city's chief financial officer. But with limited options, it's the working families of Austin who will feel the pinch as a result of these incumbent conservative lawmakers' decisions.

The City Council has a chance to fight for its residents during the amendment process, but ultimately, it's the Texas Legislature and Governor's decisions that are hurting Austinians' wallets.