Fiscal Year 2026 Proposed Budget presented to Mayor and City Council

Published on August 14, 2025

SAN ANTONIO (August 14, 2025) –Today, City Manager Erik Walsh presented the Fiscal Year 2026 Proposed Budget to the Mayor and City Council. The Proposed Budget is $4 billion and reflects the priorities of the Council and the community in a financially challenging fiscal year. 

Revenues are growing, but not fast enough to keep pace with rising costs. As a result, the City faced projected General Fund deficits of $21 million in Fiscal Year 2026 and $152 million in Fiscal Year 2027. Two major revenue sources, sales tax and property tax, are falling short of projections. The City also experienced an irregular drop in property values, as more residents appeal their taxes and take advantage of homestead exemptions. These shifts, along with slower consumer spending patterns, have created a compounding effect on the City’s financial forecast.

Even so, the City’s priorities remain clear: protect essential services, support vulnerable residents, and avoid long-term risks. Residents have shared through the City’s Budget survey that their top priorities include homelessness, streets and sidewalks, housing, public safety, and animal care—and those are the areas where resources will be focused.

“To balance the budget and continue to make investments that matter, we will be purposeful, focused, and responsive in the new fiscal year,” City Manager Erik Walsh said. “This isn’t about cutting back—it’s about managing smarter to stay financially strong for the future.”

Address Homelessness

Homeless services are a top priority for both residents and City Council. The proposed budget includes a $30.5 million investment and creates a new Homeless Services and Strategy Department. This department will focus on providing immediate help for the unhoused while working toward lasting solutions. It will also ensure that 1,300 homeless encampments are cleaned up within 14 days of a 311 report.

Invest in Affordable Housing

The proposed budget invests $30.4 million from the General Fund, other funds and grants to continue implementing the Strategic Housing Implementation Plan (SHIP). This includes $21.8million for home rehabilitation and repair, rental assistance, and down payment assistance. By the end of Fiscal Year 2026, 13,100 affordable homes are expected to be built, under construction, or in the planning stages.

Repair & Maintain Streets & Sidewalks

The community has made it clear that infrastructure is a top priority. The proposed budget creates a new Capital Delivery Department working alongside Public Works. This separates major project delivery from routine maintenance, helping both teams work more efficiently. The plan commits $122 million to street improvements, enough to complete 1,464 projects and maintain 416 milesof road. It also dedicates $17 million to sidewalks, adding 21 miles of new sidewalks and repairing 11 miles.

Keep San Antonio Safe

The proposed budget invests $631 million in police services and $428 million in the Fire Department to keep the community safe. This will add 53new police officers and 12 firefighters to help respond to medical emergencies.

Enhance Animal Care

Animal Care Services will open two new spay/neuter clinics this year, one on the East Side and one on the West Side, expanding access to veterinary care across the city. The department is on track to perform 41,459 spay/neuter surgeries, a 6.5% increase from last year, and is expected to achieve a 100% response rate to critical calls by the end of Fiscal Year 2026.

Proposed Budget Town Halls

Residents are encouraged to attend an upcoming City Budget Town Hall to learn about the proposed budget, share feedback, and ask questions. Meetings will be held in every City Council district from August 18–27.

The City will also host two public hearings regarding the 2026 Ad Valorem Tax Rate and the Fiscal Year 2026 Proposed Budget. 

Learn more about the proposed budget and view a full list of Town Hall meetings, including a Youth Town Hall, at SA.gov/Budget.