The City of Dallas’ expenditure of taxpayer dollars continues to increase, due in part to the growing number of workers that the City hires and pays significantly more than the private sector would for the same job.
As previously reported by The Dallas Express, City Manager T.C. Broadnax recently unveiled his proposed $4.6 billion budget for the upcoming fiscal year, which begins October 1. Meanwhile, the City remains a financial “sinkhole,” according to reports.
In a Thursday memo, Council Member Cara Mendelsohn said the “ever-increasing” City budget is largely due to “the fact that the number of City of Dallas staff members, often expressed as Full-Time Equivalents (FTEs) has grown significantly, and the proposed budget includes the largest FTE count in the history of Dallas.”
She noted that under Broadnax’s proposed budget, salary expenses for civilian staff, including overtime, will increase by more than 25%, or almost $70 million, rising from $273.3 million in FY22-23 to a proposed $342.8 million in FY23-24.
“Senior leaders frequently note that most of the city budget is personnel expenses. For this reason, staff increases should be limited and targeted, and all departments except public safety should focus on reducing headcount through efficiency, technology, and streamlined procedures and processes,” Mendelsohn wrote. “Of the 28 departments outlined in the budget, 23 have expense increases, 4 have decreases, and one essentially stays the same. We are headed in the wrong direction.”
As personnel expenses continue to rise, Broadnax’s proposed budget also includes raising the minimum wage of municipal workers from $18 per hour to $18.50 per hour. This recommendation was made to ensure City staff remain “diverse” and is based on a living wage calculator devised by the Massachusetts Institute of Technology, which proposes a “living wage” of $18.24 per hour for workers in Dallas County with no children.
“[The] City of Dallas works to support our diverse workforce who help keep the City running, every day,” the proposed budget reads. “This budget ensures employees are compensated fairly through continued implementation of the annual merit program and increasing the minimum wage to $18.50 per hour from the current rate of $18.00.”
“For several years, intentional actions have taken place to increase the minimum wage for employees at the City,” the document continues. “In January 2024, the City’s minimum wage will increase from $18.00 to $18.50 per hour. This investment ensures that the City attracts and retains a talented and diverse workforce.”
The City of Dallas has increased its minimum wage for municipal employees by nearly 70% over the past six years.
A table of City worker positions, wages, and the number of employees in each position can be found here. According to this data, minimum wage positions in the City of Dallas include animal keepers, cashiers, office assistants, water park attendants, parking attendants, high school interns, and manual laborers.
These wages paid with taxpayer dollars are notably higher than those in the Dallas private sector, where the average hourly pay for an animal keeper is $16.49 per hour, for a laborer is $15.64, for a cashier is $14.54, for a custodian is $14.79, and for a parking attendant is $15.87.
While most student interns in Dallas are paid roughly $13.83 per hour, the municipality is paying high school students more than $4 more per hour.
In addition to spending taxpayer money on notably higher wages, the City also offers pension plans. City employees contribute 37% of the Employees’ Retirement Fund, while the City finances the remaining 63% with taxpayer dollars.
In an email to The Dallas Express, City spokesperson Jennifer Brown confirmed that many minimum wage workers are on the City’s pension plan. She said the only workers not on the plan are interns and temporary help.
Over the past decade, the City of Dallas has increased its pension spending by 42%, according to a report from the Manhattan Institute, while spending per FTE has increased by 26% since 2011.
Broadnax’s proposed $4.6 billion budget prioritizes “equity” as a determining factor in how taxpayer money is spent, as previously reported by The Dallas Express.
In the Thursday memo, Mendelsohn argued that the City should lower the tax rate in Broadnax’s proposed budget to a “no new revenue” level.
Mayor Eric Johnson expressed support for Mendelsohn’s effort and said he plans to “discuss next steps” this week, as covered by The Dallas Express.
“Today, I requested that the City Manager develop a revised FY 2023–24 Budget based upon a no-new-revenue tax rate,” Johnson said. “The residents of Dallas deserve, and can have, a city that taxes them less, spends less, and delivers essential services more efficiently and cost-effectively!”
