AUSTIN, Texas – Austin voters may have to decide on a property tax increase in November after the Austin City Council voted Thursday to approve the maximum tax rate allowed under state law.
What they’re saying:
The City of Austin has been building its budget for the next fiscal year, which includes a $33 million shortfall.
Some city council members say a higher tax rate is needed due to state and federal funding cuts, and a higher tax rate will help maintain the quality of the city’s programs and services.
READ MORE: Austin City Council continues to work through proposed budget with $33M deficit
That could mean an increase of seven pennies per $100 property valuation.
However, critics argue Austin leaders continue to add programs and spending has gone unchecked.
By the numbers:
The proposed budget is set at $6.3 billion, with $1.5 billion for the general fund.
To fix the shortfall, the city is proposing moving $14 million from the budget stabilization reserve fund, plus cutting $19 million from these areas: less funding for animal services emergency surgeries, a reduction in EMS medical software, less funding for fire inspection services and a reduction in small tools and travel training.
$9 million would be cut from police overtime by restructuring patrol officers. $500,000 would be saved by moving the Blue Santa warehouse to a city building.
What’s next:
The city council has two more work sessions on the proposed budget set for next week (August 5 and 7) and is expected to vote on the final adoption of the budget and tax rate the following week (August 13-15).
The Source: Information in this report comes from the Austin City Council and previous reporting.
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