San Antonio is facing a fiscal squeeze, with city leaders needing to slash more than $10.6 million from its planned spending to prevent a hike in property taxes. With revenue growth slowing and the end of federal pandemic relief, city officials are being pressed to find efficiencies. According to a recent briefing to the City Council, San Antonio hasn't raised the tax rate in over three decades. However, "We know we're going to be looking at some reductions in spending, maybe redirecting spending in some higher-priority areas," City Manager Erik Walsh told reporters in a statement detailed by the San Antonio Report.
Despite the city's legal allowance to grow revenue by up to 3.5%, the challenge lies in being able to carefully navigate the current financial constraints without crossing this threshold. While unexpected demands on the budget have surfaced, particularly in public safety areas, there are no easy solutions on the table. "One of the other options is raising revenue," Walsh said. The city is also still on track to add 130 police officers over the next two years, a move planned last year as part of the commitments to public safety despite the tight budget.
The trial budget presented to the City Council indicates some potential avenues for expansion, including a crew to tackle illegal dumping for the Solid Waste Management Department, and increases in staff and funding for Animal Care Services. Yet, with 60% of the general fund already devoted to public safety, finding areas to cut or expand services elsewhere is proving to be a delicate balancing act.
Budget Director Justina Tate emphasized the slowdown in revenue growth, necessitating a proportional adjustment in expenditure growth. Amid these budgetary constraints, negotiations are ongoing for a new contract with firefighters. These discussions are a significant variable in the fiscal planning, with the city's and union's proposals reportedly $363 million apart over five years. “If you want to see those numbers move, you've got to tell staff where to cut,” Mayor Ron Nirenberg pressed the council, as indicated by the San Antonio Report.
Current budget proposals, which include 3.1% raises for non-uniformed city staff and 4% for police in the upcoming fiscal years, do not incorporate any plans for staff reductions, and the city is not in a hiring freeze, Walsh affirmed. As the budget for the 2025-2026 fiscal year is being finalized, all eyes are on San Antonio City Council's decision-making as they grapple to keep the city's fiscal health in check without burdening its residents with higher taxes.
