By Edmond Ortiz
San Antonio City Council is weighing a proposed property tax increase that local leaders hope will help to pare down a budget deficit, but they still face a range of proposed spending cuts and other tough fiscal decisions before arriving at a new budget.
The council is also adding a special election this November to ask voters to reauthorize a longer extension of a popular early childhood education program.
Budget and tax talk
Council voted 8-3 Aug. 13 to notify the public about a proposal to increase the city’s property tax rate from the current 54.1 cents per $100 valuation to 56.2 cents.
Council had hoped to avoid raising taxes, which local officials see as an undesired yet necessary measure toward reducing a budget shortfall that has been projected reaching nearly $158 million in Fiscal Year 2028.
Some council members said they understand raising property taxes is a difficult ask of residents in an economically uncertain time that includes frequent news of job layoffs and inflation.
Yet, the city finds itself grappling with an increasingly diffciult financial environment that is marked by stagnant economic growth, declining sales and property tax revenues, a taxable value loss of $4.3 billion, and new tax exemptions for business property and homeowners.
The city’s property tax income is projected to drop from $472.4 million in the current Fiscal Year 2026 to $464.1 million in Fiscal Year 2027, which begins Oct. 1. The decline is also attributed to a rising number of property appraisal protests.
In developing the proposed FY 2027 budget, unveiled to council Aug. 13, city staff recommended using property tax capacity, or unused increment from the past two fiscal years when the city opted not to raise the tax rate to the state’s property tax cap.
The proposed new tax rate, which will be the subject of public hearings set for Sept. 2 and 10, would add $36 to the total property tax bill on the average San Antonio home, which is valued at $231,356. Approximately 47% of 257,396 San Antonio homesteads are frozen and would not be affected by the tax hike.
Conservative Councilmembers Marc Whyte and Misty Spears, as well as Marina Aldrete Gavito, all voted against the tax increase proposal.
Council will get to finalize the new tax rate and adopt a final FY 2027 budget Sept. 17. City staffers said balanced budgets for the upcoming fiscal year and FY 2028 could be achieved if local officials agree to proposed moves, such as nearly $90 million in reduced expenditures, and $30 million in fee increases over the next two years.
The proposed total $4.4 billion FY 2027 budget contains the defunding of three senior nutrition centers, nonprofits and delegate agencies, the elimination of 101 civilian positions, consolidation of city departments and offices, and other reductions.
The three senior centers proposed for closure – Darner, South San and Harlandale Briar – are close to full-service public senior centers to which the city plans to refer clients.
The city does propose a 3% pay increase for civilian employees, and fire and police salary hikes that are provided in the city’s collective bargaining agreements with both public safety departments. However, the city is contending with rising employee healthcare-related costs.
The proposed budget also features spending increases to boost services for the homeless, affordable housing programs, although with the latter, the city is discontinuing its current approach to low-barrier sheltering for eligible individuals. There are also budget reductions in animal care services that city officials said will have a minimal impact on the latter department.
The city plans to hire 27 police officers to prepare for the opening of the new San Antonio International Airport terminal. The city also proposes shifting funding equivalent to 22 vacant park police positions to the San Antonio Police Department to create 22 positions there. But the police budget would also have decreased expenditures through lower overtime, administrative savings and the removal of six civilian support positions
The city is adding nine uniformed firefighters to support training academy, recruitment, application processing and school fire inspections. But there are still planned spending reductions elsewhere in the fire budget.
Council budget worksessions are scheduled from Aug. 18-Sept. 16 at City Hall, and will be open to the public. Council members will also lead budget town halls in their respective districts over the next month.
“This is a balanced and responsible budget focused on our community’s top priorities,” City Manager Erik Walsh said in a statement. “It reflects the sound financial management that our residents expect by making careful reductions, protecting essential services, and continuing to invest in our community’s future.”
In addition to spending cuts, such as the proposals affecting several local nonprofits and delegate agencies, Mayor Gina Ortiz Jones said she looks forward to council discussions about the feasibility of diverting monies from the city’s beleaguered Ready to Work program into other programs and services funded by the city’s general fund.
“It’s important to understand the flexibility that we have there, and I think that flexibility is very important, as unfortunately the economy is not getting better, and we will see the impacts of the implementation of (President Trump’s One Big, Beautiful Bill) continue in our community,” Jones said.
Pre-K 4 SA election
Council also voted 9-2 Aug. 13 to order a Nov. 3 election where San Antonio voters will weigh reauthorizing the current 1/8 of 1 cent sales tax for the Pre-K 4 SA program.
The current authorization will expire in March 2029 and, if approved Nov. 3, the ballot measure will extend the 1/8th- cent sales tax for a 20-year period.
Many council members said they welcome voter consideration of extending what they called a growing program that has proven vital to many local families.
But others said, while Pre-K 4 SA is a worthy endeavor, questioned pushing up a public election to further extend the program while the city awaits a comprehensive review of the program’s performance.
District 2 Councilmember Jalen McKee-Rodriguez enthusiastically backing the call for an election and extending the Pre-K 4 SA. Since its 2020 reauthorization, the program has served 25,816 children, preparing them to enter kindergarten.
McKee-Rodriguez said participants frequently outperform their non-Pre-K 4 SA peers in standardized tests.
“All children across San Antonio deserve to share in Pre-K 4 SA’s phenomenal success and today, we are one step closer to realizing that goal,”he said in a statement. “If and when voters approve this measure, Pre-K 4 SA will have the stability and financial resources to continue providing high-quality pre-K, infant and toddler care, and partnerships, while expanding their reach.”
