Austin's property tax hike fails
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Austin voters overwhelmingly rejected a ballot measure that would have raised city taxes to pay for homeless services, parks and public safety, among other things.
Why it matters: The results for Proposition Q show the limits of voter confidence in City Hall spending as property tax bills have risen dramatically in recent years.
By the numbers: 63.5% (109,011) of Austin voters cast ballots against the measure and 36.5% (62,719) favored it, according to unofficial results from Travis, Williamson and Hays counties.
- Turnout in Travis County was 25.2% — high for an election in an odd-numbered year.
What they're saying: "Austin voters made their decision, and they did so clearly," Mayor Kirk Watson, who supported Prop Q, said in a statement Tuesday night. "I trust their decision. And I hear them."
- He added: "We should meet the voters' mandate with a coherent, straightforward budget process that focuses on basic services and basic budgeting."
Zoom in: Austin Council Member Marc Duchen, who represents parts of West, North and Central Austin, and opposed the proposition, called the result a "wake-up call" for city officials.
- But his council colleague Vanessa Fuentes, who represents parts of South and Southeast Austin, and supported the proposition, warned Tuesday night that Prop Q's defeat "could mean fewer paramedics on shift, fewer families receiving rental assistance and access to food programs" and "reductions in park maintenance and public health outreach."
Catch up quick: In 2019, the state Legislature limited a city's tax revenue increase to no more than 3.5% above the previous year without a tax rate election. Austin city leaders decided they needed to raise more revenue beyond the 3.5% limit to pay for city priorities.
- If voters had approved the tax hike, the typical Austin homeowner — with a home worth about $500,000 — would have seen an increase of $25.22 per month, or $302.64 per year, in the city's portion of their annual property tax bill.
Between the lines: The measure had the support of prominent local Democrats like Watson, Fuentes and U.S. Rep. Greg Casar — as well as city labor unions.
- But a broad coalition of business interests and politically active neighborhood groups opposed it.
- The anti-Prop-Q advertising effort was led by a well-organized, anti-spending PAC helmed by former Travis County GOP chair Matt Mackowiak.
- "Taxpayers in Austin have said ENOUGH IS ENOUGH!" Mackowiak posted on X last night.
Follow the money: Mackowiak's Save Austin Now PAC raised about $210,000 — and spent $184,000 between Sept. 26 and Oct. 25, per the latest campaign finance report.
- Love Austin, the chief PAC supporting Prop. Q, raised $52,500 during the same period — and spent $94,000.
What's next: City officials estimate they will collect $109.5 million less revenue than the amount they budgeted for the 2025-26 fiscal year.
- The city charter requires the budget to be balanced.
The bottom line: The City Council will have to slash spending — or figure out another way to raise the money.