6 June 25 - July 1, 2026 dallasobserver.com DALLAS OBSERVER Classified | MusiC | dish | Culture | unfair Park | Contents job market, rising costs and a decrease in value of many of the city’s commercial properties as some of the main economic conditions driving the deficit. Over half of the city’s property tax value is made up of business and commercial properties, many of which have been plagued by high vacancy rates and declining values, especially in downtown. Property tax accounted for close to 60% of the city’s planned FY 27 budget when forecasted last year. Revenues included in the briefing — estimated at $1.7 billion for FY 27 — are preliminary until assessments are certified in July. The city’s revenue from property taxes has increased annually in line with rising overall real estate valuations, de- spite 10 consecutive years of property tax rate cuts approved by the council. But the state’s 2019 3.5% year-over-year cap on reve- nue growth severely limits the city’s ability to capitalize on that growth, especially given rising costs. State lawmakers have additionally sig- naled support for lowering the cap even further, despite major cities like Austin and San Antonio reporting similar difficulties. Cities may only go over the cap if approved by voters. Austin voters strongly rejected a 2025 rate-hike proposal that would have increased revenue by $110 million. A few weeks later, Austin City Council members voted to reduce the city’s budget by $95 million. Park maintenance and homeless diversion initiatives were among the pro- grams cut. Paul Ridley, District 14 council member, said in an interview that the city’s budget will be tight and added that the cap “really hamstrings us.” “Let’s not lose sight of the fact that the state has imposed this artificial limit on our revenues without taking any consideration for inflation, fuel cost increases, labor cost increases,” Ridley said, who added that he would likely only support another rate de- crease to fall in line with the cap due to fi- nancial constraints. Butting up against an additional pro- jected $3.8 million shortfall in sales tax reve- nue, rising costs encumbering Dallas’ budget also include a $13.8 million overage in employee medical expenses. Chief Finan- cial Officer Jack Ireland attributed the over- spending, in part, to increased use of GLP-1 drugs such as Ozempic. Difficult Decisions Other general fund departments are reportedly $16.4 million over budget, with police overtime and Prop U-mandated increases in public safety funding accounting for a share of the excess. The city will also increase its contribution to the embattled Dallas Police and Fire Pension plan to over $250 million in FY 27, further restricting the budget, according to the briefing. The briefing presentation says, ominously, that “Difficult decisions will need to be made.” General fund departments have been asked by City Manager Kimberly Bizor Tol- bert to identify 15% budget reductions. The park department, for example, is poten- tially looking at a roughly $14 million cut, which could result in the closure of three recreation centers and reduced mowing at public parks. Ridley added that he would prefer to see arts and culture spending protected as much as possible. In a survey, residents identified arts and culture and parks funding as lead- ing priorities behind public safety, along with libraries. “I’d like to see continued funding for the arts because that is an essential function, in my mind, that not only generates tax reve- nue from arts tourism, but also supports and celebrates our culture and our history, and provides a key source of entertainment for our residents,” he said. The council member has vehemently op- posed plans to close libraries to create a re- gional model. In February, Dallas Public Library Director Manya Shorr introduced a plan to close four libraries — including the Oak Lawn Branch Library — to move ser- vices to flagship locations with expanded hours. The regional model was a direct ef- fect of the department being asked to iden- tify savings. The City Council ultimately rejected the plan, but Shorr said the depart- ment will be forced to reduce staffing and hours as a result. Council member Paula Blackmon said the sales tax revenue picture, fueled by the loss of convention center use and a shrink- ing economy, may improve due to economic activity tied to Dallas’ nine World Cup matches. However, she also said the city needs to prepare for spending reductions and that officials should review staffing lev- els before moving on to other cuts. “I’m still of the mindset that I think we’re a little bloated on our personnel,” Blackmon said. “I mean, I think that is the first — and that’s really the only thing that we have — are people. So we may have to trim off just a bit to stay within our means.” She added that City Council offices and code compliance department would likely be among the first areas to identify cuts. Blackmon, who has been vocal in her opposition to plans to relocate from City Hall, said that the police budget and a potential delay in departmental hiring goals should also be considered in discussions of potential cuts. Texas Attorney General Ken Paxton has already sued the city for alleged non-compliance with Prop U mandates. “We may get sued, but we have 60 days to cure,” Blackmon said. “I think we can work through it. I mean, I just feel that everything should be on the table. Hell, if we’re looking to sell City Hall, then everything should be on the table.” Council member Chad West said he would support “conversations regarding ev- ery department and service,” but added a few areas would be a tough sell. “For me, cutting in library or recreation centers or pool services are going to be very tough and most likely non-negotiable, sim- ply because I believe those are core services that the city provides to our residents,” West said. “And, in a lot of ways, they’re lifelines for communities that really need it.” He said cuts in those areas will likely affect vulnerable communities that use the facilities most. The three community pools closed after last year’s budgeting process were all located in West or southern Dallas, a move officials in that area of the city criticized as unfairly af- fecting underserved communities. The Shadow of City Hall Ridley also said the potential cost of either relocating from City Hall or repairing it, which has been estimated at hundreds of millions of dollars, needs to be included in the budget. West, who has fallen on the other side of the debate on City Hall’s future from Black- mon, said the council “will have to” come to- gether to produce results for Dallas residents this August and September. Blackmon said she is unsure if a council fractured by the City Hall debate can effectively collaborate during the budgeting process in the wake of personal attacks and heated discussions. “That becomes the problem: How long is that going to linger post-vote? So how long? And I don’t know,” she said. “I don’t know how we get over it.” ▼ PUBLIC TRANSPORTATION STILL DARTING AROUND DART AVOIDS PARATRANSIT STRIKE DURING AFTER CONTRACTOR SETTLES WITH UNION. BY AUSTIN WOOD D ART has avoided a strike by para- transit workers after its provider company reached an agreement with union representatives. Outside of DART headquarters, union organizers with Amalgamated Transit Union Local 1338 and ATU International said that a three-year agreement had been struck “at the last minute.” Without the deal, a strike would have taken effect lthis month, they said. Paratransit services pro- vide point-to-point service for disabled and mobility-challenged residents who cannot use standard DART services, such as light rail and bus routes. ATU representatives have been in discus- sions with DART’s contracted paratransit provider, Transdev, since last year. A strike had been authorized in 2025 but was called off on the promise of further negotiations. After those negotiations proved unfruitful, paratransit workers voted 160-1 on June 1 to authorize a strike. Talks progressed over the weekend to avoid walkouts. “We told the company, ‘Look, we’re on the time schedule. We’re not here to play games. If we don’t get it done, we’re just go- ing to keep moving on,’” Stanley Smalls, a se- nior organizer with ATU International, said. Smalls added that the talks over last weekend felt like a “turning point.” The main disagreements came from con- cerns over wages and healthcare benefits. Organizers said the plans available to para- transit employees forced them to pay more than 70% of their healthcare costs while earning $19.25 an hour. Under the three- year agreement, wages will rise to $22.30 an hour, and workers will be responsible for less than half of their healthcare costs, Smalls said. “A lot of it was cut down to 40% employ- ees cost, which is not the greatest, but it’s bet- ter than what they were paying,” Smalls said. “With the new wage increase, our employees can literally afford some health care now.” He added that the union did not get everything it had hoped for, including more sick days, but was satisfied with the wage and benefit increases. Wages will be revisited during yearly talks under the agreement. Transdev was awarded a $600 million, eight-year contract to provide Gordon Shattles/DART A new union contract guarantees paratransit uses won’t see a break in service. Let It Bleed from p4 >> p8
