Austin City Council passes largest-ever budget, up $500 million from current fiscal year
In a 10-1 vote on Wednesday, the Austin City Council passed a $5.5 billion fiscal 2023-24 budget, up $500 million from the current year's budget.
The budget outlines base wage increases for city employees from $20 per hour to $20.80 per hour, millions to address homelessness and a $32.4 million raise in the Austin Police Department budget.
The budget is the largest in the city's history, city employees said.
“The budget council adopted today reinforces the city’s commitment to community by delivering high-quality services and amenities with excellence and reliability,” interim City Manager Jesús Garza said. “We look forward to implementing council’s priorities by dedicating new funds and positions to secure the financial health of our city while continuing to move the needle, encouraging innovation and progress.”
Garza's office was responsible for the drafting and presentation of the new budget and, based on the projected timeline of the city manager search, will also oversee the fiscal 2024-25 budget. District 6 Council Member Mackenzie Kelly was the only "no" vote on the budget.
"My vote against the budget stems from my concerns regarding certain budget items that deviate from our core priorities and don't align with a back-to-basics approach," Kelly said in a statement.
Under the newly adopted budget, the "typical" ratepayer in Austin will see a combined projected increase of 3.6% — $172 per year or $14.31 per month — due to tax, rate and fee changes.
For a "typical" homeowner, defined as the owner of a median-valued ($499,524) nonsenior home, tax bills will be $1,782 per year or $148 per month, according to the city, which is about a $102 increase from last year.
In Austin, the fiscal year runs from Oct. 1 through Sept. 30 of the next year.
The City Council also approved the largest-ever Austin Police Department budget at $477.3 million. Due to a 2021 state law that prohibits cities from cutting police funding, the city will be required to allocate at least $477.3 million to the police budget in future years.
In 2020, Austin cut its police budget by about $150 million and reallocated that money to other public safety initiatives.
Pay increases for sworn officers account for the largest chunk of the Police Department's budget increase. The rise in spending comes as the Police Department deals with a nearly 15% vacancy rate in its sworn positions.
Several amendments and a handful of staff recommendations were adopted into the city's budget after it was first drafted, including $2 million in one-time funding for a mental health jail diversion program and $1.3 million for a family stabilization grant program.
A full version of the adopted budget will be published in the fall, according to the city.
This article originally appeared on Austin American-Statesman: Austin City Council passes largest-ever city budget at $5.5 billion
