City Council Approves $5.5 Billion Budget

The $1.4 billion General Fund pays for services like public safety, libraries, and parks (Photo by Getty Images)

With Mayor Kirk Watson chairing his first budget meeting during his second stint as mayor, City Council adopted a $5.5 billion spending plan for fiscal year 2023-2024 in record time.

By 3:30pm the meeting was adjourned. Before that, there was little debate over amendments proposed by council members. As has become a hallmark of the Watson-Garza (as in, Interim City Manager Jesús Garza) era, debate mostly occurred behind the scenes or in prior public meetings.

The FY24 budget adopted by Council (on a 10-1 vote with CM Mackenzie Kelly against) allocates $1.4 billion to the General Fund, which pays for services like public safety, libraries, and parks. The overall tax rate approved by Council is 1.69 cents less than last year, but because of increasing home values, the property tax bill for the owner of a median-valued home ($499,524) will increase by $148/month. Fee increases for city services will result in the typical ratepayer paying an additional $172/month.

Council got about $10 million worth of amendments approved, though the push for more rental assistance secured a lot less funding than progressive groups wanted. Garza offered virtually nothing in his budget, so advocates pushed for $7.8 million. Only $1.6 million made it into the budget via a CM Chito Vela amendment – roughly a 79% decrease from last year’s budget. It was a stinging defeat for advocates who spent the hours leading up to adoption at City Hall lobbying CMs for a more robust rental assistance fund.

Other budget additions include $1.3 million to continue a “universal basic income” program, offered by CM Vanessa Fuentes, funding for Victims Services Counselors at the Austin Police Department from CM Alison Alter, and a successful push to stop a Garza-initiated transfer of 37 civilian positions into APD.

We’ll have a deeper dive on the adopted budget in next week’s issue.