San Antonio leaders clash over budget and tax hike

San Antonio city leaders are facing a deadline to resolve a $158 million budget deficit, with tensions rising over a proposed 8.4% property tax rate increase over the next two years.

City Manager Erik Walsh is attempting to build consensus to avoid a scenario where state law would force $75 million in cuts and increased fees if the council fails to approve a tax hike. To facilitate agreement, Walsh proposed a $6 million spending package to preserve certain programs. However, council members remain divided on how to address the shortfall.

Mayor Gina Ortiz Jones has advocated for restructuring revenue from hotel occupancy taxes (HOT) and tax increment reinvestment zones, while suggesting cuts to subsidies for organizations such as the San Antonio Botanical Garden and Fiesta. Meanwhile, Councilman Marc Whyte has proposed a 2% spending cut across all city departments. As the council approaches a vote on the proposed budget and tax rate, leaders have expressed frustration over the lack of consensus.