San Antonio council weighs FY2026 amendments: pay increases, more police hires and delegate-agency boosts

SAN ANTONIO — At a Sept. 16 budget work session, the City of San Antonio City Council discussed a slate of proposed changes to the fiscal year 2026 budget, including a proposal to add a $750 base salary increase for city employees, funding to increase police hiring and restored funding for several nonprofit service providers. City staff and council members emphasized the need to keep the FY2026 budget balanced while signaling bigger fiscal risks in FY2027 if certain federal grants expire.

Justina Tate, the city’s budget director, told the council that “the fiscal year 2026 proposed budget is $4,000,000,000” and reviewed a list of potential amendments and offset options. Tate said the proposed budget was balanced when presented on Aug. 4 but the city faces multi-year pressure as revenues slow and expenses rise.

Why it matters: City staff repeatedly told the council a balanced budget is legally required for FY2026 and that the larger risk is in FY2027 when federal funding supporting public-health and other programs may drop off. Dr. Claude Jacobs of Metro Health told the council staff had identified a looming fiscal “cliff,” saying the department expects “over $8,000,000 hit and over 80 staff impacted by those cuts” in the year after 2026 if federal grants are not renewed.

Key proposed amendments discussed

- Employee pay: Amendments would add a $750 base salary increase (described by staff as effectively a 2% across-the-board adjustment for many employees), and the budget director and multiple council members expressed broad support for preserving employee pay increases.

- Police staffing: One amendment would increase the number of new…