A recent internal city audit found major gaps in how city departments justify and manage consultant contracts, raising concerns over hundreds of millions of dollars in spending.
From 2023 to 2025, the city spent more than $279 million on consultants, with annual spending rising by $21 million in the two year period, marking a 25% increase. The majority of the new costs came from consultant expenditures for Austin Energy, Austin Economic Development, Austin Technology Services and Austin Aviation.
Based on its findings, the City Auditor’s office recommended that the city’s finance department provide instructions on how to assess whether a department needs a private consultant; ensure departments document progress and assess goals for consultants; and require performance evaluations…