Austin Weighs Criteria for $17M in Social Service Cuts

City panel approves rubric to determine which contracts to reduce amid budget constraints.

Feb. 6, 2026 at 4:15pm

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The city of Austin's public health advisory panel has approved a rubric to help determine how to distribute nearly $17 million in cuts to social service contracts in its next budget. This comes on top of a $5.28 million reduction in the current budget for a range of services. The analysis found that Austin relies almost exclusively on the city's general fund to pay for social services, unlike peer cities that use a variety of funding streams.

Why it matters

The cuts to social services contracts could have significant impacts on vulnerable populations in Austin, including those experiencing homelessness, mental health issues, and health disparities. The city is seeking to develop a transparent and equitable process for determining which services to reduce amid budget constraints.

The details

The rubric approved by the public health panel will weigh factors like whether a contracted service 'provides a need essential for human life,' avoids costs to other departments, provides a return on investment for the city, and demonstrates meeting goals in their contract. The city will also explore sustainable funding sources and conduct feedback sessions with community stakeholders as it develops the next budget proposal.

  • On Wednesday, the city's public health advisory panel approved the rubric.
  • In the spring, city staff will begin developing the 2026-2027 budget proposal.
  • In mid-August, the City Council will vote to adopt the 2026-2027 budget.

The players

T.C. Broadnax

The Austin City Manager who disclosed the anticipated $16.8 million reduction to social service contracts in the next fiscal year.

Stephanie Hayden-Howard

The Austin Assistant City Manager who told the health panel that the large percentage of general fund spending on social services was the result of years of council policymaking decisions.

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What they’re saying

“When other entities cut social service funding, she said nonprofits and organizations came to the city for more money.”

— Stephanie Hayden-Howard, Assistant City Manager (statesman.com)

What’s next

City staff will begin developing the 2026-2027 budget proposal in the spring, which will then be deliberated and voted on by the City Council in mid-August.

The takeaway

The cuts to Austin's social service contracts highlight the city's heavy reliance on its general fund to support these critical programs, unlike peer cities that utilize a variety of funding sources. The city is working to develop a transparent process for determining which services to reduce, but the impacts on vulnerable populations remain a significant concern.