Dallas County is making strides toward financial stability, narrowly escaping a potential $50 million shortfall projected earlier this year.
The county’s revised budget forecast for 2025 shows a deficit of less than $1 million, a significant improvement from previous estimates. Budget Officer Ronica Watkins shared the updated figures with the county commissioners in a meeting on Tuesday.
“I’m excited,” Watkins said, according to KERA News. “We’re less than a million shortage [sic] toward the reserve policy 10.5%. And that’s based on those cost savings that we discussed at $39.9 million.”
With the new projections, Dallas County is edging closer to meeting its reserve policy target of 10.5% of the general fund. The improved outlook results from rigorous financial adjustments and reallocations of taxpayer money that have bridged the gap.
The next step involves finalizing the proposed budget for 2025, which may include adjustments to the property tax rate.The Dallas area has been no stranger to budget deficits. As previously reported by The Dallas Express in May, despite rising tax collections on the part of the City of Dallas, the City was expected to face a $38 million budget shortfall for fiscal year 2025.
City CFO Jack Ireland projected that the shortfall could range from $18 million to $25 million through 2028. However, Ireland also assured council members that by August 13, the budget would no longer show a deficit.
Currently, about 9% of the collected property taxes go to the county, with the remainder shared by the City, local school districts, and other taxing entities.
Additionally, operational costs are projected to rise by $13.5 million, further complicating budgetary considerations for the future.
County officials will continue to refine the budget and explore options to balance the county’s needs with financial realities. The anticipated property tax rate increase is expected to be a focal point in upcoming discussions as the county seeks to maintain essential services without further burdening residents, who are already taxed a considerable amount.