ATX-NCA: Impact 11/5/2025

The Austin tax rate election ballot measure Proposition Q appears headed for failure, based only preliminary voting results.
Proposition Q was rejected by a nearly two-to-one margin. Travis, Williamson and Hays counties reported 85,814 ballots cast against the tax increase late Nov. 4, representing nearly 65% of the vote, versus 46,591 in favor.

What it means: Proposition Q asked voters to approve a 20% increase to Austin's property tax rate, as set by City Council during their budget adoption this summer. The higher rate would have generated about $110 million in additional revenue for various programs and raised the typical homeowner's tax bill by over $300.
If the election outcome holds, Austin officials must revise the city's budget based on a lower tax rate—one that's still about 10% higher than last year's, and that would add about $105 to the typical homeowner's tax bill.

The Austin ISD board of trustees will no longer vote to close Palm, Bryker Woods and Maplewood elementaries in November.

Additionally, the district will postpone any proposed attendance boundary changes until next year, excluding those related to intervention at failing schools, Superintendent Matias Segura announced in a letter to families on the evening of Nov. 4.

The announcement follows weeks of protesting from AISD parents, staff and students against the district’s initial plan to close 13 schools and rezone most campuses.

What's happening: On Nov. 20, the AISD board will move forward with voting on the closure of 10 of the 13 campuses it initially proposed to close next school year. Seven of these campuses have received three consecutive F ratings and require state-mandated intervention through turnaround plans. 

In the spring, AISD will pick up its efforts to balance enrollment through a comprehensive boundary plan before taking a vote in the fall. Delaying the rezoning “will allow us to ensure all ideas from our community can be considered in our plan,” the letter states.

Building height limits for high-rise projects downtown are now in place as Austin responds to a new state law meant to spur housing development across Texas.

The update caps most buildings in the city core at 350 feet, unless new towers participate agree to provide public benefits like streetscape improvements and fee payments for affordable housing. The changes approved in October are expected to be temporary ahead of wider revisions to city development policies and Austin's long-range plans for the downtown area.

While moving forward with a 350-foot limit in response to SB 840 this fall, city planners report the change could hurt Austin's affordable housing efforts due to declining participation in the density bonus program. However, taller projects may not be on the horizon for now given wider economic conditions.

The city's new height cap was also questioned in public reviews ahead of council's October vote, with some community members stating the change could constrain new construction and hamper city goals.

As of press time, all 17 constitutional amendments on the Texas ballot were poised to become law. The state propositions with the most support would either expand property tax exemptions or prohibit new taxes, while voters also favored measures aimed at funding infrastructure and research.

The overview: Some of the state propositions on the ballot included:

• Proposition 1: new funding to support the Texas State Technical College System
• Proposition 3: tighter restrictions on when Texas judges can grant bail for felony offenses
• Proposition 4: $20 billion for water supply projects and infrastructure
• Proposition 9: a $125,000 property tax exemption for businesses
• Propositions 11 and 13: expanded property tax exemptions for Texas homeowners
• Proposition 14: $3 billion to create a state dementia research institute