City leaders say Dallas is confronting a serious budget strain of the kind now hitting many big cities, with a projected $51 million gap driven by weaker tax growth, inflation, and higher public safety costs.
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As the city council prepared for a budget briefing, officials described a local government struggling to absorb steadily rising expenses, the Dallas Observer reported. To help keep the budget balanced, Dallas has already turned to furlough days, travel bans, and hiring freezes.
Kimberly Bizor Tolbert, the Dallas city manager, warned council members that the problem will not stop after a single budget cycle, either. In the draft budget for fiscal year 2026-27, the city is working through a similar deficit even as officials consider a proposed $5.66 billion overall budget, which would be a city record.
Some of the pressure is specific to Dallas, but many of the challenges are the result of statewide policies. Texas law bars cities from increasing property tax revenue growth above 3.5% without voter approval. That means that a municipality’s payroll, pension, and service costs can keep climbing even as one of a city’s main revenue sources remains tightly restricted…