AUSTIN (Talk1370.com) -- In a shift from City Hall tradition, Austin Mayor Kirk Watson is directing staff to build the city’s upcoming budget forecast without assuming a property tax hike.
While previous budgets routinely baked in the maximum 3.5% increase allowed by state law without voter approval, Watson — backed by four council members — wants to see exactly what "no new taxes" looks like.
According to Watson, the 3.5% increase amounts to about $25 million in additional revenue.
The move follows a stinging defeat at the polls last year, where Austin voters rejected a 20% tax hike proposal in Proposition Q. Watson’s pivot signals a new focus on fiscal transparency and affordability.
Mayor Pro Tem Chito Vela, and council members Ryan Alter, Jose Velasquez, and Krista Laine joined Watson in supporting the proposal.
By starting at zero, Watson argues that the city can better identify necessary trade-offs and potential service cuts. "Affordability is impacted by taxes," Watson noted, acknowledging the financial strain on residents.
The budget cycle will kick off with the release of a five-year financial forecast, which is expected to be released on April 15. Council will begin deliberating the actual budget over the summer, adopting it and a final tax rate in mid-August.
State law allows for a 3.5% increase without voter approval, which has typically served as a starting point
