Spurs Arena Funding Vote Proposed as San Antonio Confronts $158 Million Budget Gap
Mayor Gina Ortiz Jones is calling for San Antonio voters to reconsider the city’s $489 million commitment to a new downtown Spurs arena as officials confront a projected $157.7 million budget shortfall over the next two fiscal years.
According to local reports, in a memo to City Council Jones proposed placing the city’s arena funding package on the November ballot. She argued that residents now have a clearer understanding of the city’s financial position, including the prospect of deeper service cuts or a property tax increase.
“November would allow city voters to vote clearly informed by what they are paying, what they are receiving in return and whether the latter is good enough,” Jones wrote.
The proposal is the latest in a series of cost-cutting ideas introduced by Jones as council members prepare to consider the city’s proposed budget Aug. 13.
Related: San Antonio Budget Gap Prompts Mayor to Seek Private Funding for DreamWeek, MLK March and Others
Jones Says City Residents Will Pay Twice
The planned $1.3 billion arena is a central component of Project Marvel, the proposed sports and entertainment district near Hemisfair. The venue is expected to begin hosting the Spurs around 2030.
Bexar County voters narrowly approved Proposition B in November 2025, authorizing up to $311 million in hotel occupancy and rental car tax revenue for the arena. The city has committed another $489 million, while Spurs Sports & Entertainment would contribute at least $500 million and cover construction cost overruns.
The county vote did not directly authorize the city’s contribution. City officials have maintained that a separate election was not legally required, although council members tied the city’s participation to approval of the county proposition.
Jones said San Antonio residents deserve another opportunity to vote because they contribute to both city and county revenue.
“City voters will pay twice towards the proposed arena, as they will contribute to the county’s $311 million contribution and the city’s $489 million contribution,” Jones wrote. “Since they pay twice, city voters deserve to vote twice.”
District 2 Councilman Jalen McKee-Rodriguez’s office expressed support for allowing residents to have a voice on the city’s commitment.
District 9 Councilwoman Misty Spears and District 10 Councilman Marc Whyte, both spurs arena supporters, said the city’s $489 million commitment cannot be redirected to basic services because much of it comes from restricted revenue sources.
How the City Plans to Finance Its Contribution
San Antonio’s contribution is expected to be financed through several sources, including Project Finance Zone revenue generated by hotels and hotel-related businesses, lease payments from the Spurs and bonds supported by projected increases in property tax revenue within the downtown project area.
Related: The Spurs Are Coming to San Antonio Neighborhoods. Here’s Why.
Arena supporters have argued that visitors and economic activity surrounding the development would generate much of the public funding. Critics say dedicating future downtown tax growth to the project could prevent that revenue from supporting basic city services.
Jones has also raised questions about what residents would receive in exchange for the investment. The preliminary agreement includes $75 million in community benefits, equivalent to $2.5 million annually for 30 years. Jones has additionally pushed for a revenue-sharing arrangement, although Spurs representatives have reportedly resisted that proposal.
Spurs Sports & Entertainment has spent recent weeks gathering public feedback through a series of community workshops about the arena and surrounding development.
The deadline for City Council to place a measure on the November ballot is Aug. 17.
Mayor Proposes Additional Savings
Jones’ arena memo follows several proposals aimed at addressing the city’s projected $158 million budget gap.
Last week, she asked business and philanthropic leaders to consider replacing approximately $6.5 million in annual city funding for 15 nonprofit and community organizations. The proposal sought three-year private funding commitments for groups including DreamVoice, the Dr. Martin Luther King Jr. Commission, the San Antonio Book Festival, the San Antonio Botanical Garden, and others.
Related: San Antonio Announces Full Schedule of FY 2027 Budget Town Halls Across the City
Jones has also proposed asking voters to end the Ready to Work workforce-development program—created by former San Antonio Mayor Ron Nirenberg—early and redirect as much as $100 million in remaining funds toward eligible city projects.
City Council is scheduled to receive the proposed Fiscal Year 2027 budget August 13. Residents can provide feedback during district budget town halls scheduled from Aug. 17 through Aug. 25, including a Youth Edition meeting Aug. 22. Council is expected to adopt the final budget and tax rate in September.
Editor’s Note: This story was updated to include the City of San Antonio’s Fiscal Year 2027 budget timeline and information about public budget town halls scheduled across the city in August.
