FY27 Budget Forecast Direction

[Colleen Pate]

As we start the budget process, I’ve proposed we begin by asking our professional finance staff, as part of the forecast, to include calculations using the no new revenue tax rate. I’ve included some of my thoughts about this in a Watson Wire that I’ve put out today. You can see it here: http://assets.austintexas.gov/austincou ... 121042.pdf

I’m joined in this request by Mayor Pro Tem Vela and Council Members Alter, Velasquez and Laine.

I look forward to our discussion going forward.

Thanks, everyone.

Kirk

On behalf of Mayor Watson

[Ryan Alter]

Mayor,

I want to thank you for your leadership on this effort and voice support for this process. This budget is going to be very difficult. It’s going to require prioritizing what we can and should be funding and what we simply cannot. To your point in your newsletter, this decision making requires us to have as much information about what departments view as vital to their mission and what is not. By being presented with a no new revenue budget, we will have better clarity into how we can balance community needs and the funds that we have.

As the Manager assembles this budget, it is my hope that he takes a sharp look at every department including public safety. We can’t balance the budget on the backs of those with the least. Slashing community programs that result in greater public safety spending is not a long-term solution. We can be smarter about how we provide basic services so that we get more out of every dollar we spend. I believe the process you are calling for here will further move us in that direction and look forward to reaching a balanced budget that best serves our residents.

[Jose Chito Vela]

Mayor,

I support your request for a no new revenue budget forecast and think it will help the budget process. Ultimately, I will support taking the full 3.5% increase in property tax revenues allowed by state law. However, to inform and educate ourselves and the general public, we should look at all options and evaluate the impacts on city services. We will face serious financial challenges in the coming years because of the 3.5% property tax caps. These financial challenges are being exacerbated by the slowing economy and increasing gas prices and inflation. At some point soon, we may have to go back to the voters and ask for another TRE to fund critical city services. Looking at all our different property tax revenue options - no new revenue, the full 3.5%, or somewhere in between - will help educate and inform the public for the coming debate and discussions over city revenues, services and tax rates.

Chito

[Jose Velasquez]

Mayor,

Thank you for your leadership on this and for the opportunity to support this request.

I agree with Council Member Alter that we can’t balance the budget at the cost of Austin’s most vulnerable citizens. I implore the City Manager and our excellent finance staff to carefully and critically evaluate the real human impacts of this budget.

I feel strongly that this budget needs to prioritize the sustainability of programs that support communities in need, such as displacement prevention, housing accessibility and public safety.

As I have said about many things since the last budget, our communications and community engagement efforts around this need to be meaningful and robust.

a sus ordenes,

CMJV