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Austin officials unanimously approved a reduced $6.3 billion budget and tax rate for the city's fiscal year 2025-26, weeks after voters rejected a tax hike under Proposition Q and prompted the budget revision process.
The proposition's failure in the Nov. 4 election automatically dropped the city's tax rate from the level set under Proposition Q, removing more than $100 million from Austin's general fund. Taxes and other city fees will still rise for the typical homeowner, and are projected to increase further next year.
This fall's budget revisions largely centered around the nearly $1.5 billion general fund supporting public safety departments; public health; homelessness and housing programs; and parks, library, animal services, and arts and culture operations. Council members had advanced the overturned tax increase to support most of those areas given concerns about state and federal funding cuts, and to expand higher profile city services.
Council members' final amendments to the revised budget approved Nov. 20 also involved those topics, with a focus on supporting emergency medical services and some homelessness initiatives.
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