Austin council debates budget cuts, EMS brownouts and cuts to social‑service contracts after Prop Q defeat

Mayor Kirk Watson reopened the Nov. 18 work session for a budget briefing and council Q&A after a morning recess. Carrie Lane, director of Budget and Organizational Excellence, told the council the failed voter approval (Prop Q) reduced general‑fund revenue roughly $110 million for FY26 and described a package of amendments that reverses an earlier $40.5 million transfer to reserves and trims department budgets to balance the year.

The presentation laid out department‑level changes, an updated forecast showing a balanced FY26 and FY27 but a projected deficit beginning in FY28, and proposed reductions to social‑service contracts (staff said many non‑HSO contracts would face a 10% cut while some HSO contracts would be trimmed about 4%). "We are here to have this conversation on how we will balance the general fund going forward with that reduced revenue," Lane said during her slide briefing.

Public testimony filled much of the afternoon. Remote and in‑person speakers urged the council to protect funding for homelessness services, the family stabilization grant and mental‑health…