(Texas Scorecard) – Residents of Texas’ capital city could face monumentally higher tax bills across several jurisdictions, which radio host Todd Jeffries has characterized as a “Tax Bloodbath.”
Overheard:
“This year is going to be a Tax Bloodbath if voters in the City of Austin approve all the tax increases proposed. Both AISD and Travis County are proposing tax-rate elections to set the tax rate above even the Voter-Approved Rate (3.5%). Homeowners may see about a…
— Todd Jeffries (@ToddJeffries) August 7, 2024
As Jeffries’ tweet makes clear, at least three taxing entities appear poised to shake the money tree.
As Texas Scorecard has previously reported, the City of Austin is currently considering yet another record setting budget. Assuming the city council moves forward, which appears likely, this budget would beget the maximum legal property tax hike along with higher rates for electricity, trash, and water. The proposed expenditures represent a nearly 10 percent increase from last year’s previous record of $5.5 billion. It’s an increase of $1.5 billion from just three years ago. As a matter of perspective, the city had a (still bloated) budget of $3.5 billion a decade ago.
While conservative Councilmember Mackenzie Kelly has proposed an alternative budget that does not raise taxes, it is not expected to move.
Unfortunately, for besieged Austinites, tax increases are not limited to the city council.
As Texas Scorecard has likewise documented, Austin ISD is also poised to present taxpayers with a so-called “tax ratification election” this fall. The tax increase would cover a projected 2025 budget deficit of $78 million. District trustees approved a budget of over $1 billion in June.
Against this backdrop, Austin ISD’s chief financial officer was arrested for insurance fraud earlier this week.
Finally, for now, Travis County is expected to call a tax rate election to expand subsidies for child care.
All three jurisdictions are expected to formalize their budgets before the end of August. Election Day is November 5. Early voting runs from October 21 to November 1.