Item 5. Draft Recommendation- Social Services Funding in FY 2026-27 — original pdf

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RECOMMENDATION TO COUNCIL Commission For Women Recommendation Number: [YYYYMMDD-XXX] Opposing Proposed $5.1 Million Cut to Social Service Contracts in the City of Austin FY27 Budget and Highlighting Equity Impacts WHEREAS, the City Manager’s FY27 proposed budget includes at least a $5.1 million reduction to social service contracts in FY27, with a deeper $8.8 million in cuts anticipated in FY28, according to the City of Austin staff memorandum dated July 2, 2026 (“Social Services Contracts Analysis, Resolution No. 20260226-056”); and WHEREAS, proposed reductions potentially include up to 38% in transportation services, 35% in basic needs, 35% in legal services, 34% in family services, 32% in workforce development, 32% in HIV services, and 100% elimination of community planning and neighborhood capacity building, alongside ~10% reductions in behavioral health, health equity, and certain homelessness services; and WHEREAS, demand for these services remains high: for example, in FY26, City of Austin nonprofit partners served more than 40,000 households with eviction prevention and housing stability support, provided over 2.5 million meals through food access programs, delivered legal aid to more than 8,000 low-income residents, and supported thousands of older adults with transportation and eldercare; and WHEREAS, Austin-area nonprofits are already absorbing more than $42 million in federal cuts and freezes across 82 Central Texas organizations, which forcing service number reductions, staff layoffs, and program closures; while philanthropic funding has also declined, with several major funders reducing grants or shifting priorities, leaving nonprofits with fewer resources to offset public cuts; and WHEREAS, the proposed reductions will disproportionately harm marginalized residents: • African American, Asian American, Hispanic/Latino, and LGBTQ residents, who rely on culturally responsive health and social services; • Women, children, families experiencing poverty, food insecurity, and domestic violence, and who depend on family services, legal aid, and housing stability programs; • Residents of the Eastern Crescent, where community-based services help address longstanding disparities in health, transportation and economic opportunity; • Older adults in suburban districts, who depend on transportation, nutrition, eldercare support services, and health equity programs to remain healthy, independent and avoid isolation; . • People with disabilities, who require accessible community services and supports to fully participate in community life; and WHEREAS, budget reductions of this magnitude would leave thousands of Austinites without access to basic needs, increase downstream costs to shelters, emergency healthcare, and law enforcement, and undermine the City’s adopted equity goals; and WHEREAS, Austin's community nonprofit organizations serve as cost-effective implementation partners that deliver essential public services on behalf of the City while leveraging private philanthropy, volunteers, and community partnerships to expand the City's capacity; and WHEREAS, the City has established performance measures, financial monitoring, compliance reviews, corrective action plans, and contract termination authority to address underperforming contracts on an individual basis; and WHEREAS, responsible stewardship requires that reductions to essential health and human services remain a last resort after reasonable operational efficiencies, internal cost-saving measures, and alternative budget strategies have been fully evaluated and exhausted; NOW THEREFORE, BE IT RESOLVED, that the Commission for Women recommends against the $5.1 million in cuts to social service contracts proposed in the FY27 Budget and the $8.8 million in cuts anticipated in the FY28 City Budget, and emphasizes that cuts to social services will disproportionately harm marginalized communities, undermining equity and inclusion goals adopted by the City; and BE IT FURTHER RESOLVED, that the Commission for Women endorses and recommends the principles of Efficacy Before Cuts and Transparency and Accountability as outlined above and further recommends that reductions to essential health and human services remain a last resort, after the City demonstrates that reasonable operational efficiencies, internal cost-saving measures, and alternative budget strategies have been fully evaluated and exhausted; and BE IT FURTHER RESOLVED, that the Commission for Women recommends that any proposed reduction to essential health and human services be accompanied by a publicly available, program-level impact analysis identifying: • • • • • • the contracts affected; the number and demographics of residents expected to lose access to services; the anticipated effects on service delivery and community outcomes; the projected downstream impacts on emergency healthcare, shelters, public safety, and other public systems; the rationale supporting the proposed reduction; and the City's plan to preserve continuity of care and minimize harm where reductions cannot be avoided; and BE IT FURTHER RESOLVED, that the Commission for Women recommends that funding reductions be based on documented performance deficiencies that remain unresolved after . corrective action or on objective evidence demonstrating a sustained decline in community need, rather than broad reductions across service categories; and BE IT FURTHER RESOLVED, that the Commission for Women asks its staff liaison to transmit this recommendation to the Mayor, City Council, and City Manager, the City Budget Office, and to coordinate with other commissions as appropriate to publish shared priorities. Seconded By: Date of Approval: Motioned By: Vote: For: Against: Abstain: Off the dais: Absent: Attest: _____________________________________________