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Austin Voters Defeat Prop Q Tax Hike, Triggering $109.5 Million Budget Gap

City leaders now must rewrite the FY2025–26 budget under the lower voter-approval tax rate.

Overview

  • The five-cent-per-$100 proposal would have raised roughly $110 million a year for homelessness, public safety, parks, climate projects and public health.
  • With the measure’s failure, the rate reverts to 52.4017 cents per $100, leaving General Fund revenue an estimated $109.5 million below the adopted plan.
  • The typical homeowner’s 2026 city tax bill is projected to rise by $104.76 rather than about $302 if the increase had passed.
  • The city manager will present a revised budget, and council members have warned that deep cuts are likely.
  • Mayor Kirk Watson called for a back-to-basics budgeting process as Council Member Mike Siegel cautioned that near-term reductions will affect programs and services.