The San Antonio City Council has adopted its new budget for Fiscal Year 2026. This budget focuses on providing funding to alleviate issues with homelessness, housing affordability, animal care as well as city employee compensation. Additionally, this budget establishes the new Capital Delivery Department and provides funding to both the San Antonio Police Department and the San Antonio Fire Department to train and hire more personnel.
The FY26 budget for the City of San Antonio is $4 billion, an increase from the previous $3.89 billion budget from FY25. The city has allocated $1.69 billion to the General Fund, which covers operating expenses for first responders, city health services and other basic services. This is a 1.6% increase in funding from FY25.
Notably, the City of San Antonio has faced a budget shortfall of $174 million. This budget aims to remedy the issue by decreasing governmental spending by approximately $111 million and shifting some operating expenses to San Antonio’s Capital Improvement Budget. This decreased spending led to the elimination of 67 positions in the city government; however, those affected by these eliminations have been moved to positions with existing vacancies. The city is also looking to increase revenue by increasing targeted fees and fines.
Homelessness
In this fiscal year’s budget, the San Antonio City Council has invested increased funds into aiding the homeless population and reducing the homelessness rate in the Alamo City. A $4.8 million infusion has been allocated to extend the operation of the city’s low-barrier shelter services. These services were originally funded by the Federal Government.
Additionally, the city has allocated funding for an expected increase in encampment abatements. 1,300 abatements have been projected for FY26.
Affordable housing
Funding to address the housing affordability crisis has also been allocated in this budget, with $30.4 million from the city’s General Fund, as well as funding from additional grants going towards the Strategic Housing Implementation Plan, which launched in 2020. This plan aims to have 28,094 affordable housing units built in San Antonio by 2031. This budget will see approximately 13,100 of these units built — almost 47% — in FY26, according to projections from City Manager Erik Walsh.
Capital delivery department
The new Capital Delivery Department has been established in the FY26 budget. Formed by using existing staff from the San Antonio Public Works Department, the Capital Delivery Department will focus on completing large-scale infrastructure projects. The department has been allocated $250 million, all from the Capital Improvement Fund, which includes $122.4 million to complete 1,464 infrastructure projects. Additionally, $17 million has been allocated for 21 new miles of sidewalk and 11 miles of sidewalk repair. Public Works will now focus on maintaining existing infrastructure.
First responders
Increased funding has been provided to SAPD and SAFD to hire 53 new police officers and 12 new firefighters, respectively. Additionally, 65 vacancies from the San Antonio Park Police and San Antonio Airport Police will be reallocated to SAPD. The 12 new SAFD firefighters will staff two new medical units at the Alamo City’s busiest substations. Of the new SAPD officers, 28 will staff the new South Flores Substation and 25 will staff proactive patrols across the city.
In FY26, SAPD will operate with a total of 2,893 officers and SAFD will operate with 1,800 firefighters.
City employee raises
Lastly, the city has allocated additional funding to increase city employee compensation. This funding will see a 2% raise across the board for all city employees. Additionally, SAPD employees will receive a 4% raise and SAFD employees will see an 8% raise.
