City Manager T.C. Broadnax proposed a $6.3 billion operating budget for fiscal year 2025-26 on July 15 to the Austin City Council. The council will meet from Wednesday to Friday to vote on the proposed budget, according to the Budget Engagement site.
A city news release said the proposed budget prioritizes “services that Austinites expect and deserve.” The proposed budget is a 5.1% increase of the $5.9 billion fiscal year 2025 amended budget, according to the proposed budget, setting a new record high for Austin.
The city began the budget cycle with a projected deficit in the General Fund of $33 million, wrote Broadnax in a Message from the Manager to the mayor, mayor pro tem and members of the City Council.
“Balancing the budget with a shortfall revenue while investing in key areas was made possible by a close and critical look at all spending,” Broadnax wrote in the message. “Doing so enabled us to increase funding in key areas.”
The news release included the budget highlights of expanding shelter space for people experiencing homelessness, increasing emergency rental assistance, expanding emergency response operations and planned spending of $2.9 billion for critical infrastructure projects.
Most of the allocated funds are for the city’s enterprise departments, such as Austin Water and Austin Aviation, with Austin Energy comprising 30% of the expenditures, according to the proposed budget.
The proposed budget provides an additional $3.7 million in Austin Energy for Customer Energy Solutions. Richard Genece, vice president for Customer Energy Solutions, said this funding supports the Resource, Generation and Climate Protection Plan to 2035.
“Our goal as a utility is to reduce carbon and eventually get to an energy mix that is carbon-free,” Genece said. “All of the programs within Customer Energy Solutions are part of supporting that plan.”
The General Fund accounts for 23% of the expenditures and is comprised of 13 city departments, including the city’s police, fire and emergency medical services departments, parks and recreation, and the new arts, culture, music and entertainment department.
The Human Rights Division in the Office of Equity and Inclusion is included in the proposed budget, which Director Lindsey Wilson said was established in March with the hiring of Human Rights Officer Shafina Khaki.
“Establishing the Human Rights Division (means) expanding our existing programs and building a really strong infrastructure to address a wide range of service needs to center on our most vulnerable populations,” Khaki said.
The proposed budget includes $250,000 for the office to develop the Americans with Disabilities Act transition plan and $150,000 for We All Belong, a public campaign against hate crimes and incidents, according to the news release.
“What we hope to see is that those who are directly impacted or closest to the inequities are centered in the decisions that we make, whether it’s budget, whether it’s program services that we’re offering, or anything else,” Wilson said.
Broadnax wrote in his message that the proposed budget aligns with the three critical focus areas of people, place and partnerships.
“As we plan ahead, not just for this year but for years to come, we will continue to do so strategically, while listening and responding to our community members, and (seeking) innovative pathways to ensure we are preserving, promoting and progressing the values that define Austin,” Broadnax wrote.
