Biggest-Ever City Budget Approved: $5.9 Billion for Austin.

A Tale of Two Cities: Austin's Budget Betrays its Most Vulnerable Residents as the Wealth Gap Widens

Austin, Texas — In a shameful display of regressive policy-making, the Austin City Council has once again turned its back on the city's most vulnerable communities, approving a budget that burdens residents with increased taxes and fees while failing to adequately address the city's pressing social issues.

The $5.9 billion budget, the largest in the city's history, was approved in a 10-1 vote on Wednesday, with District 6 Council Member Mackenzie Kelly, the lone conservative voice, opposing it. Kelly rightly recognized the hypocrisy of this budget, stating, "I cannot, in good conscience, vote yes on such a large budget, given the cost-of-living crisis that Austinites face and the many glaring inefficiencies presented".

Soaking the Poor to Pad the Pockets of the Rich:

• The typical Austin homeowner will see an increase of $188.02 in their annual city property tax bill, further squeezing those already struggling with the soaring cost of living.
• Residents will also be hit with increased utility bills:
  • Austin Water — a $74.52 annual increase.
  • Austin Energy — a projected increase of $32.40.
  • Total average increase for ratepayers — $358.18 annually ^1
• This regressive taxation disproportionately affects low-income residents, who will struggle even more to make ends meet.

A Minimum Wage Increase That's Still Not Enough:

The budget does include a small victory with the increase of the minimum wage for city employees from $20.80 to $21.63 an hour, along with a 4% across-the-board wage increase. However, in a city with a soaring cost of living, this modest increase barely makes a dent.

Failing the Homeless, Again:

Despite a nominal increase in funding for the Homeless Strategy Office, the budget falls far short of what is needed to address the city's growing homelessness crisis:

• $2.8 million in additional funding for the Northbridge and Southbridge homeless shelters, allocated from the city's general fund.
• $2.6 million to cover permanent supportive housing, also from the general fund.
• Additional funding for the Downtown Austin Community Mobile Court and caseworkers.
• A one-time investment of $1 million in homelessness prevention, funded by bringing the general fund reserve levels down to 16.7%.

However, these incremental steps do little to address the systemic failures that have led to Austin's homelessness crisis, and the majority of the City Council continues to turn a blind eye to innovative solutions, such as those proposed by VOCAL-TX, in favor of further enriching the police department.

Police Funding Still Takes Priority over People:

In a year that has seen nationwide protests against police brutality and a reckoning with the systemic racism inherent in our criminal justice system, the Austin Police Department's budget has, yet again, been increased, this time by a staggering $18.2 million. This increase makes up 35.1% of the city's $1.4 billion general fund, for a total budget of $496.3 million.

This increase comes despite the city facing a cap on property taxes, imposed by Governor Greg Abbott, which has resulted in a drop in revenue for the city's general fund. Rather than prioritizing social services and progressive solutions, the City Council continues to funnel money into a department that has time and again failed its residents, particularly those from marginalized communities.

The approval of this budget makes it clear that the Austin City Council prioritizes the interests of the wealthy and powerful over the needs of its most vulnerable residents. It is a betrayal of the progressive values that Austin claims to hold dear, and a stark reminder of the systemic inequality that plagues our city and our nation.

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