Austin City Council passes $6.6 billion operating budget

The Austin City Council has passed a $6.6 billion operating budget for the 2026-2027 fiscal year, marking a $300 million increase over the previous year. The budget, effective October 1, will result in higher costs for residents, including an estimated annual property tax increase of $113.76 and utility fee increases of $172.08 for the typical homeowner.

The decision faced opposition from Mayor Kirk Watson and Council Member Marc Duchen. Watson expressed concerns regarding fiscal responsibility and sustainability, while Duchen argued for a budget increase limited to the rate of inflation.

While the initial proposal drew criticism for cutting social services to increase police funding, the city manager reduced those cuts by $4.7 million. The final budget includes allocations for parkland and public pool maintenance, housing vouchers, and overtime for the Fire Department and EMS.