Nonprofit leaders tell Austin committee retroactive cuts and proposed reductions will destabilize services

A coalition of nonprofit leaders told the Austin Public Health Committee on Feb. 4 that contract reductions already applied and further proposed cuts would immediately strain programs serving survivors of violence, older adults, families with young children and households at risk of eviction.

Speakers representing SAFE Alliance, 1 Voice Central Texas, Family Elder Care, United Way for Greater Austin, El Buen Samaritano and other providers delivered testimony during the public-communications portion of the committee meeting, describing both operational shortfalls and human impacts.

Key claims from testimony: Dewey Smith, a SAFE Alliance board member, said social-service funding is "central" to public safety and urged the committee not to treat survivor safety as a discretionary line item. SAFE Alliance CEO Dr. Peter Palestine said a $145,000 cut "translates to about $500,000" in lost services for the organization and estimated the cuts will shift an additional $3.5–$7 million in costs to other public systems. Dr. Rosa Maria Murillo of 1 Voice Central Texas said the city applied a 10% (about $5 million) reduction retroactive to Oct. 1, 2025, and cited a $1 million (25%) reduction to an eviction-prevention program.

Providers' requests and recommendations: Nonprofit leaders asked the committee for no further cuts to social service contracts, an immediate impact assessment of the reductions, a budget-workshop that includes providers, and coordinated cross-sector engagement (city, county, Central Health and philanthropy) to stabilize services. Family Elder Care and other providers noted specific program risks, such as reductions to in-home supports for older adults and increased waiting lists for services.

Staff response: City staff acknowledged providers' testimony and agreed to receive additional data (SAFE Alliance committed to sending a five-page letter and supporting figures). Staff emphasized the inventory and framework work is at an early stage and committed to continued outreach and to returning an updated memo and recommendations to the committee.

What happens next: The committee approved a separate policy recommendation directing the city manager to develop a rubric and pursue funding and engagement options (see related article). Providers asked the committee to ensure any evaluation includes equity and service-vulnerability checks so that reductions do not create cascading harms to the most at-risk residents.

Representative quotes: "When specialized staff lead, when clinical capacity shrinks, when survivors lose trust... those losses take years and significantly more funding to rebuild," Dewey Smith told the committee. "Budgets are moral documents," SAFE Alliance CEO Dr. Peter Palestine said.

The committee will continue its review of the social services portfolio and requested memo updates and additional data from staff and providers ahead of May recommendations and the FY27 budget cycle.