Social service nonprofits brace for Austin cuts
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Dante Beard offers hand warmers and food from the Sunrise Homeless Navigation Center to Amber outside her tent at a car wash on Menchaca Road in January. Photo: Jay Janner/The Austin American-Statesman via Getty Images
Nonprofits that provide HIV outreach, workforce development, youth assistance and other social services are bracing for potential funding cuts from the city of Austin.
Why it matters: Nonprofits typically perform on-the-ground work to help poor and vulnerable populations — and the city money is often a crucial funding source for their operations.
Driving the news: Austin officials are rolling out a $6.6 billion budget proposal for the coming fiscal year — up from $6.3 billion this fiscal year.
The big picture: City officials have been warning since November, when a property tax hike election failed, that they would be reducing spending in some key areas this coming year.
Follow the money: The proposed budget would still raise taxes and fees for the typical Austin homeowner by about $350 per year, or 6.1% over what they're paying now. It includes:
- An increase in the overtime budget for Austin firefighters and more money to expand Austin police recruitment.
- An additional $1.2 million for pools and parkland maintenance.
- Adding five new staff positions for the Austin Public Library and providing $1.2 million in one-time funding for the recently renovated Austin History Center.
- A new $250,000 investment at the Austin Animal Center to improve security at the shelter and increase safety for animal protection officers.
What they're saying: "In planning this budget, we focused on cost savings and being responsible stewards of taxpayer dollars," Austin city manager T.C. Broadnax wrote to the mayor and City Council members in laying out the budget plan.
Yes, but: The budget proposes a $16.8 million cut to the city's $74.2 million social service contract portfolio.
- "Initial reaction was deflated," Lisa Stewart, CEO of the Literacy Coalition of Central Texas, which undertakes adult education and workforce development, told KVUE.
- "You know, we try so hard to serve the city of Austin and the community that's here, and get them where they need to be on an economic opportunity."
- At El Buen Samaritano, which provides health care and education services, cuts could affect not only the nonprofit itself but also "the families that we serve," Rosamaria Murillo, the nonprofit's CEO, told the TV station.
- City funds cover about 30% of operations of El Buen Samaritano, Murillo said.
Between the lines: The overall increase in the proposed budget is a function of base cost drivers such as employee benefits, wage adjustments, and inflationary pressures on contract and commodity prices, according to city documents.
- Expenditure growth in three departments represents more than half of the total citywide proposed increase.
- Austin Energy's budget would increase by $62.6 million, or 3.1%, to pay for wages and higher debt service, transmission and operating costs.
- Austin Water's budget would increase by $37.5 million, or 4.3%, to finance its capital improvement plan, among other costs.
- The Aviation Department budget would increase by $62.1 million, or 13.9%, as it continues to pursue a major expansion of Austin-Bergstrom International Airport.
The bottom line: About two-thirds of Austin's general funds go to the city's fire, police and emergency services departments.