How City Councils Across Texas Are Shaping the State’s Economic Future
On Wednesday, I attended a luncheon with Austin City Councilmember Mike Siegel. The conversation, while centered on local issues, offered valuable lessons for business and civic leaders across Texas.
From fiscal policy to public engagement, the themes are universal: our cities are under pressure, and public-private collaboration is no longer optional—it’s essential.
Disclaimer: this post isn’t about taking a political side. It’s about understanding the big-picture challenges facing local governments, the implications for business, and how we can all show up more effectively as civic leaders.
What Austin’s Budget Struggles Reveal About the Statewide Picture
Councilmember Siegel shared that Austin, for the first time in recent memory, is confronting a structural budget deficit. Even after applying the maximum allowable property tax increase under Texas law, the city is still short by more than $30 million.
The root cause is a 2019 state law that limits annual property tax increases to 3.5 percent. While this cap may sound reasonable, cities across Texas are finding that inflation, rising wages, and increasing public service needs are outpacing revenue growth. This law impacts every municipality in the state. In Austin’s case, the situation is made more difficult by the expiration of federal COVID relief funds and cuts to public health and social service grants.
These trends are not unique to Austin. Cities across Texas are facing the same pressures.
The Bottom Line: For business leaders, this means you may start seeing impacts on workforce development programs, infrastructure investments, public safety, and quality-of-life initiatives.
Why Capital Budget Choices Matter for the Private Sector
Siegel discussed a major infrastructure project known as "cap and stitch," which would cover parts of I-35 with public park space. Though the project could offer long-term economic and environmental benefits, the price tag is steep—an estimated $1.4 billion—with no confirmed funding partners beyond the City of Austin.
Similar capital projects are under discussion in cities across the state, from freeway redesigns in Houston to downtown revitalization efforts in San Antonio and Fort Worth.
Here’s what matters to you: Every bond dollar or capital investment comes with tradeoffs. In Austin, funding the freeway cap project could reduce capacity to invest in housing, public safety, drainage systems, or workforce infrastructure.
The Bottome Line: For business leaders, this raises important questions:
Are your city’s capital investments aligned with business and talent needs?
Are you part of the conversation early enough to influence priorities?
Do you understand how these decisions are made—and when?
Equity, Quality of Life, and the Business Case for Public Engagement
The conversation also highlighted how cities use “Quality of Life Commissions,” which are advisory bodies that elevate the needs of diverse communities, including LGBTQIA residents, immigrant communities, and people experiencing homelessness. These commissions shape funding proposals ranging from youth shelters to mental health services to cultural centers.
As a business leader, you may not see these programs as directly tied to your operations. But they affect the broader economic ecosystem, including public health, safety, and inclusion.
Put simply: When our cities thrive, businesses thrive.
5 Ways to Get Informed and Stay Engaged
You don’t have to sit through hours of public meetings or memorize tax code to engage meaningfully. Here are a few ways to plug in, no matter what city you're in:
Follow your local councilmembers and city manager newsletters. Most now provide summaries and timelines.
Use media filters like KUT, the Austin Monitor, or local equivalents in your region. Seek out briefings that contextualize the news for a civic or economic audience.
Support or join local chambers of commerce and industry groups, which often offer curated updates and collective advocacy.
Encourage your company to host civic education sessions through partnerships like IGC Institute or others, you can equip your team with the knowledge to navigate city decision-making.
Provide feedback when it counts. Every city allows residents and businesses to submit comments online or sign up to speak on major agenda items. You can weigh in without leaving your desk.
Final Takeaway: Cities Can’t Afford to Go It Alone
The luncheon ended with a powerful reminder: neither the state nor the federal government is going to solve local problems for us. In fact, in many cases, their policies are making things harder. That means it’s up to each of us to step up.
City budgets are more than spreadsheets. They are statements of values and priorities. The more we understand the choices being made, the more we can help ensure those choices reflect the long-term health, equity, and prosperity of our communities.
Whether you’re in Austin or Arlington, Dallas or Denton, Houston or Harlingen, now is the time to get curious, stay informed, and be involved.
Want to bring nonpartisan civics education to your team or business? Contact IGC Institute to learn how we support organizations across Texas.