San Antonio Proposes Budget with Focus on Federal Grants and Strategic Spending Adjustments

San Antonio's City Council is gearing up for significant budget discussions as they prepare for fiscal year 2027, with a focus on addressing declining revenues and potential changes in federal funding. During the meeting on August 14, 2025, city officials highlighted the need for strategic expense reductions in response to a decrease in building permits and taxable values, which could impact future city revenues.

The proposed budget for the upcoming fiscal year includes a hotel occupancy tax projection of $108.7 million, reflecting a 2.8% increase from the previous year. This budget maintains funding for Visit San Antonio and public art maintenance, while also proposing adjustments in spending at the Convention Center and Alamodome. Notably, the budget incorporates $162.7 million in federal and state grants, although it also reflects a $1.4 million reduction in metro health grants and the cancellation of a $27.1 million solar grant.

City officials expressed concern over potential changes to Community Development Block Grants (CDBG) and other federal funding sources, which are crucial for affordable housing initiatives. In response, the council plans to conduct tabletop exercises to prepare for possible funding cuts and their implications on city services and partnerships with local healthcare and nonprofit organizations.

Looking ahead, the council will hold budget work sessions starting next week, with community town halls scheduled to engage residents in the budget process. The proposed budget will be available for public review online, ensuring transparency and community involvement in shaping San Antonio's financial future.

As the council navigates these challenges, they aim to adopt a budget that not only addresses immediate fiscal concerns but also aligns with long-term strategic goals for the city. The upcoming discussions will be critical in determining how San Antonio can effectively respond to changing economic conditions while continuing to support essential services and community needs.