Tensions between City Council members boiled over Wednesday as they considered an 8.4% property tax rate increase over the next two years to balance the city’s $158 million budget deficit.
City Manager Erik Walsh and his team are trying to avert a worst-case scenario in which state law forces him to make $75 million in cuts and increase fees and fines. That would happen if seven council members are unable to approve a property tax increase — the majority required under Texas law.
To avoid that, Walsh and his team proposed a $6 million spending package that would save some programs council members expressed interest in preserving during Tuesday’s work session. The proposal was intended to build consensus on the dais before Thursday’s meeting.
San Antonio Mayor Gina Ortiz Jones continued to push her plan, which now includes a 1.6% cut across all city departments to avoid a property tax increase.
She also proposed Tuesday shuffling revenue from hotel occupancy taxes (HOT) and city tax increment reinvestment zones, as well as cutting subsidies to Fiesta, the San Antonio Botanical Garden and Síclovía.
Meanwhile, District 10 Councilman Marc Whyte during Wednesday’s discussion continued to seek support for his plan to slash spending at every city department by 2%.
Neither Whyte’s plan nor Jones’ got much support on the dais, and both appeared uninterested in discussing the proposed compromise Walsh and his staff spent time developing ahead of the meeting. With time ticking down, District 2 Councilman Jalen McKee-Rodriguez cut off debate to emphasize the reality of the situation.
“All we’re doing right now is stressing each other out,” a visibly tense McKee-Rodriguez said. “If we’re going to continue debating things that we already know there’s no consensus for, and that’s going to dominate our discussion, it is pointless. It continues to make us look like fools.”
District 3 Councilwoman Phyllis Viagran agreed, specifically taking issue with Whyte’s draconian measures.
Walsh said his staff intentionally didn’t include Whyte’s proposal as an option because it’s an “inequitable” solution, especially for poorer districts already working with less cash on hand.
Viagran agreed with Walsh’s assessment, adding that she’s concerned about what will happen if the city doesn’t pass a tax increase.
“The governor has made it clear that he wants any property tax increase to be a supermajority from this point forward,” Viagran said. “With the conversation at the state level about whether or not they come after CPS Energy, where is San Antonio going to be? So, we really need to get past this budget and start thinking about the challenges that lie ahead.”
Even so, Whyte and District 9 Councilwoman Misty Spears continued to argue that San Antonio needs more police, even though more than 65% of the proposed budget goes to public safety, including costs tied to the contract the city council approved with the San Antonio Police Officers Association last week.
“We did something for the police this budget,” Viagran said. “We passed their contract … . Don’t tell me we don’t do enough for our officers.”
Whyte, Spears and District 7 Councilwoman Marina Alderete Gavito have continued to reiterate their staunch opposition to a property tax increase. However, as of Wednesday afternoon, it appeared council may have the seven votes needed under state law to pass a tax increase.
But as we’ve seen over the past year, anything can happen at San Antonio City Hall.
Council will reconvene to vote on the budget at 9 a.m. Thursday.
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