Members of the Austin City Council have approved the city's next annual budget for the 2025-26 fiscal year.

The $6.3 billion plan aims to address the city's $33.4 million budget shortfall, and will include a tax rate increase equivalent to five cents for every $100 of valuation, which would add approximately $25.22 per month to an average homeowner's city tax bill.

In order for the tax rate increase to take effect, voters will have to approve it on the ballot in November. Council members justified the increase, saying that the city is facing numerous challenges including declining sales tax revenue, state-imposed revenue caps and federal funding cuts.

The budget was approved on a 10-1 vote, with District 10 Councilman Marc Duchen serving as the lone "No" vote.

Major and notable budget investments include:

• New firefighter positions and training, which would enhance coverage in high-need areas and prepare the force for future public safety needs.
• Wildfire safety gear and equipment upgrades, which would protect frontline responders and increase the capacity to manage fire threats.
• EMS ambulance staffing and command support, which would ensure faster response times and expanded coverage across the city.
• Investment in EMS communications and navigation teams, which would further enhance coordination in emergency situations.
• 24/7 mental health response services, which would expand access to immediate care for residents in crisis and ease pressure on traditional EMS and hospital systems.
• Increased parks funding for maintenance and youth athletic field upkeep, which would make green spaces safer and more accessible.

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