AUSTIN (Talk1370.com) -- Calling it a "balanced" budget that invests in the community while minimizing the impact on taxpayers, Austin City Manager Spencer Cronk presented his budget proposal for the 2021-2022 fiscal year to City Council members Friday afternoon.
The $4.5 billion overall budget includes $1.3 billion in planned capital spending, and $1.2 billion in General Fund expenses.
Friday's presentation begins a month-long process of budget input meetings, City Council work sessions, and town hall meetings across the city, before Council members will finalize the budget and property tax rate by August 13.
With the $1.2 billion in General Fund expenses, the budget is based on a 3.5% increase over the "no-new-revenue operations and maintenance tax rate". When combined with rate and fee charges, the "typical" Austin ratepayer is expected to see a projected increase of 0.85%.
Cronk's proposed budget deals with the repercussions of House Bill 1900, passed by the Texas Legislature and signed into law by Gov. Greg Abbott last month. Under Cronk's proposed budget, the Austin Police Department will see $442.8 million in funding, which represents an increase of $133.1 million from the FY 2020-21 budget and an increase of $8.3 million from the FY 2019-20 budget.
Much of the reinvestment comes from re-integrating several functions that had been moved outside of APD control. $6.2 million is included to fund the currently ongoing 144th cadet class, as well as future classes based on the department's reimagined police academy curriculum.
The budget also includes $65.2 million in continued funding for the city's efforts to deal with the homelessness crisis, including specific funding allocated for preventing homelessness, crisis response, housing stabilization, and public space management. In addition to the $65.2 million, Council previously authorized $106.7 million in federal relief funds as well.
Other budget highlights include $79 million in voter-approved planned spending to reach key affordable housing goals, $27.7 million in new sidewalks and reconstruction of existing sidewalks, and $8.5 million in planned spending on the city's Safe Routes to School program.
While Cronk's 2021-22 budget proposal is a balanced budget, the effects of the state's 3.5% limit on revenue increases will likely result in budget deficits in future years. "In short, without securing additional revenue and/or dramatically reducing costs," said Cronk, "we project an ongoing budget imbalance that will grow year after year."
Cronk says those deficits will begin at $5.5 million in FY 2022-23, and grow to $15.6 million by FY 2025-26.