San Antonio reins in city spending amid economic uncertainty
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The San Antonio City Council is set to vote Thursday on a new budget that tightens the belt as sales and property tax growth stall.
Why it matters: The nation has experienced economic uncertainty this year amid President Trump's tariffs and fears over joblessness and inflation. That translates to less consumer spending, which in turn leads to less money for the city of San Antonio.
- Cities across the country are seeing similar downturns in their budgets.
Flashback: In the immediate aftermath of the pandemic, the city budget saw big boosts thanks to high tax revenues from the inflated cost of goods and spikes in property values.
- Now, the boom is over.
How it works: The city's general fund budget helps maintain streets, employ police officers and firefighters, and ensure neighborhoods have access to libraries, recreation centers and parks.
- It's largely comprised of revenue from property and sales taxes and city-owned CPS Energy.
By the numbers: The coming year's total budget is $4.04 billion. That includes a $1.69 billion general fund, a 1.6% increase from last year.
- Last year's adopted budget totaled $3.9 billion, with a $1.67 billion general fund.
State of play: This summer, city officials projected general fund revenues would grow by just 1% in the upcoming fiscal year 2026. Meanwhile, the city's expenses were set to rise 3.5%.
- After adjustments, the city now expects to hold its expense growth to 1.6%. Revenue is now expected to grow by 0.8%.
Zoom in: The city plans to make more money in part by increasing fees for parking and traffic violations.
- The budget also includes about $111 million in reduced spending that avoids major cuts to services. Civilian city employees will receive a smaller wage increase, 2% across the board, than originally planned.
Plus: The city is creating two new departments at no additional cost by reorganizing existing staff: the Homeless Services and Strategy Department and the Capital Delivery Department.
- The latter will focus on major capital projects and bond projects, following longstanding criticism of slow construction.
What they're saying: "This isn't about cutting back — it's about managing smarter to stay financially strong for the future," city manager Erik Walsh said in a previous statement.
What's next: Once passed, a new city budget will take effect Oct. 1.