The City of Austin announced a $6.6 billion 2026-2027 proposed budget, and it's expected to go to a vote for final approval in mid-August. This year's proposed budget increased by $301.1 million of last year's 2026 Amended Budget, continuing the trend of raising the budget to a record high each year, which city officials attribute to wage adjustments, inflation, and increased capital investments.

What does that mean? Let's break it down.

Budget structure

The budget follows six strategic priorities:

Community Health and Sustainability
Economic and Workforce Development
High-performing Government
Homelessness and Housing
Mobility and Critical Infrastructure
Public Safety

Funding allocation

It costs nearly $2 billion just to keep the lights on. | Graphic via City of Austin

This year's budget looks almost identical to last year's $6.3 billion proposed budget — the only difference at first glance is 1% less allocated to the General Fund, and 1% more allocated to GO Debt Service.

Meanwhile, ~$1.5 billion funds all of these departments. | Graphic via City of Austin

Austin Energy and Austin Water account for 43% on their own, and the General Fund covers services like police, fire, EMS, Austin Public Health, Parks and Recreation, Austin Public Library, the Homeless Strategy Office, animal services, and more.

Where the money comes from

Thanks for doing your part in keeping the city running. | Graphic via City of Austin

If you pay taxes, your money helps keep the city running, so if no one has told you recently, thank you. The five biggest funding sources for the budget are Austin Energy charges (30%), property taxes (19%), service charges (16%), Austin Water utility charges (13%), and sales tax (6%). Those all account for 84% of the budget.

Taxpayer Impact

$345.95. That's the estimated annual impact on a ”typical” residential ratepayer. That number includes:

$173.87 in property taxes, based on a non-senior homestead assessed value of $484,907 and a 20% general homestead exemption.
$93.12 from Austin Water, based on 5,800 gallons of water and 4,000 gallons of wastewater.
$43.92 from Austin Energy, based on customer electricity usage of 860 Kwh.
$20.40 from Austin Resource Recovery, based on a 64-gallon garbage bin.
$10.44 from the Drainage Utility Fee, based on customers with 3,100 sqft of impervious cover.
$4.20 from the Clean Community Fee per single-family home.

Notable investments

$20.1 million in increased operating budget for the Austin Convention Center construction, totaling $145.5 million
$7.8 million for local housing vouchers
$6 million increase in overtime funding for the Austin Fire Department to right-size the budget
$6 million in total new funding for permanent supportive housing services
$3 million in new funding for Marshalling Yard, totaling $8 million for the operating cost of the shelter
$2.8 million to create 40 custodial, security, and property management positions at the Public Safety Headquarters, University Park, and Grove Boulevard
$2.3 million in one-time funding for emergency rental assistance
$1.5 million to conduct a City-wide efficiency + cost-savings audit
$1.2 million increase for parkland and pool maintenance funding
$1.2 million in one-time funding for the Austin History Center improvements

What questions do you have about the new budget? Let us know.