On July 15, City Manager T.C. Broadnax presented Austin’s proposed FY 2025-26 Austin budget, totaling $6.3 billion. With increased funding for sustainability and climate initiatives across multiple departments—including Parks and Recreation, Watershed Protection, and Austin Energy—the budget sets the stage for meaningful environmental progress.
At the same time, the city faces growing climate threats, a budget deficit, and mounting financial pressure, making this year’s funding choices particularly consequential. The fiscal year begins October 1. Before then, the City Council will hold budget work sessions (July 23–August 7), a community input session (July 23), and a public hearing (July 31), with final adoption scheduled for August 13–15.
Clean energy commitments at Austin Energy
One of the most impactful environmental investments is a $3.7 million increase to Austin Energy’s Customer Energy Solutions program, which provides rebates for energy-efficient and renewable technologies. These incentives help households cut emissions and energy bills.
An additional $3 million is allocated to implement the Resource Generation and Climate Protection Plan 2035. The proposed budget also includes $114,655 for a new Demand Response position to help manage energy loads and further the city’s goal of achieving 100% carbon-free energy by 2035. Through this program, businesses receive incentives to reduce energy use during peak demand.
Water resilience and conservation prioritized
Austin Water proposes adding 31 new positions to support Water Forward, the city’s 100-year strategy to ensure safe, reliable, and sustainable water service in a changing climate.
Other water-related investments include:
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$1.4 million for a major water conservation campaign
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$1 million for improved planning, monitoring, and compliance—efforts that help reduce pollution, mitigate flooding, and curb erosion
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Expanded capacity to test water meter accuracy
To fund these enhancements, Austin Water will raise average monthly rates by 5%. Some resources will be reallocated from other areas, including a $214,000 cut following the end of the Rain Catcher Program Pilot.
Strengthening stormwater and wildfire readiness
The Watershed Protection Department, funded largely by drainage fees, is requesting a $122 million budget, including eight new positions for storm drain rehab and construction, and $1.3 million for vegetation maintenance.
Austin Fire proposes a $280,000 increase for wildfire shelters and equipment to improve emergency response during extreme conditions. Wildfire shelters provide temporary protection from heat, smoke, and flames when evacuation is not possible.
Urban forest and climate resilience boosted
Management Services will receive a $23 million increase (to $59 million total), with several notable sustainability investments:
Additional environmental investments
Other highlights include:
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Austin Resource Recovery: $619,000 for six new litter abatement staff and the launch of a Furniture Reuse Warehouse
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Transportation and Public Works: 11 new hires, partially to improve urban trail maintenance
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Urban Forestry: Now housed under the Climate Action Resilience division to better align with the Climate Equity Plan and Heat Resilience Playbook
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Air Quality Monitoring: A $257,000 increase to expand air quality tracking and improvement efforts
- Parks and Recreation: A $2.5 million increase in funding for park planning, development, and operations.
More funding needed for climate action
While the FY 2025–26 budget introduces significant investments in climate and environmental initiatives—from energy and water to trees and air quality—more is needed to meet the urgency of the climate crisis.
We echo Public Citizen’s call for full implementation of the Climate Equity Plan and Climate Implementation Plan, which chart a path toward a just and sustainable Austin. These plans must be matched with sufficient staffing, long-term funding, and political will to become reality.
Austin’s Opportunity to Lead Amid Federal Rollbacks
With federal and state climate action faltering, Austin has an urgent opportunity—and responsibility—to lead. Bold local investment can protect residents from intensifying climate impacts, improve public health, and inspire other cities to act.
This year’s budget is a step in the right direction. But to truly meet the moment, City Council must do more. We urge continued and expanded investments in climate action to build a safer, healthier, and more sustainable Austin for all.
