San Antonio City Hall got an earful Thursday as council members from across the spectrum lined up against City Manager Erik Walsh’s proposal to raise property taxes by 6% to plug a growing budget hole. The early verdict on the draft budget: thanks, but no thanks. The clash set up what is likely to be a long, loud summer of town halls and negotiations before a final vote in September.
In a budget briefing, Walsh pitched a 6% property tax increase, excluding homesteaders, along with roughly $80 million in new public-safety spending, much of it tied to expanded health-care benefits in police and fire collective-bargaining agreements, as reported by San Antonio Current. He also waved off ideas like a hiring freeze or blanket spending cuts, arguing that staff had few realistic alternatives to close the gap.
“A tax rate increase is just not the solution,” District 10 Councilman Marc Whyte countered, calling the hike a short-term patch on what he described as a structural spending problem, according to the San Antonio Express-News. His comments drew applause from the gallery and sharpened the split between council members who are open to more revenue and those insisting on deeper cuts or long-term reforms instead.
Budget staff have warned that falling taxable values and rising costs have created scenarios that would require about $130 million in cuts over the next two years unless new revenue surfaces, according to Texas Public Radio. That pressure, along with the prospect of the city’s first rate increase in more than three decades, has council members scrambling for alternatives to a straight tax hike.
Next Steps
Several council members said they will host town halls in July to hear directly from residents before committing to any tax changes, with a final budget vote slated for September, according to San Antonio Current. Between now and then, staff are expected to return with updated numbers and a menu of possible cuts or revenue tweaks to try to win over a skeptical council.
What It Would Mean for Homeowners
Walsh’s draft plan would leave homestead exemptions out of the increase, which would protect many long-term homeowners and those with frozen tax lines. Nearly half of homesteads are held by seniors or people with disabilities, a group that may be insulated from some changes, according to KSAT. City estimates cited by the San Antonio Express-News indicate that in the maximum scenario, the median homeowner would see roughly a $70 increase per year, though the exact hit will depend on the final rate and certified appraisal rolls.
For now, the message from the dais is that a 6% hike is a hard sell. Council members are signaling they want more options on the table before they sign off on any increase, setting up a summer-long fight over priorities, services and what kind of city San Antonio can afford to be heading into that September vote.
