On Tuesday, Bexar County Commissioners reviewed a draft fiscal‑year 2026‑27 budget that aims to address a looming financial shortfall while keeping the property‑tax rate unchanged. The proposal totals $2.6 billion, down from $2.8 billion the prior year, and it already narrows the projected deficit from $145 million to $42 million, pushing the shortfall timeline out by a year.
Key financial pressures
Two forces are straining the county’s finances. First, property values fell 1.3 percent this year – the first decline in recent memory. Since property taxes provide roughly 80 percent of the county’s operating revenue, the dip directly reduces funds for the sheriff’s office, courts, road repairs and other essential services.
Second, the county is losing a major source of federal pandemic relief. Nearly $400 million in American Rescue Plan Act money must be spent by the end of 2026, and those funds are now running out.
Officials’ response
County Manager David Smith called the situation “one of the more challenging budgets I’ve been involved in,” noting the rarity of a literal drop in property‑tax revenue. Budget Director Tanya Gaitan emphasized that the county is not cutting services; instead, it is slowing the growth of expenditures.
The draft budget achieves this by moderating spending growth and preserving existing programs. As a result, the projected shortfall has been reduced and its impact delayed to the fiscal year 2029‑30.
Remaining gaps and future needs
Despite the progress, officials say an additional $30 million will be needed by fiscal year 2027‑28, either through new recurring revenue or further spending adjustments, to keep the budget on track over the long term.
County Manager Smith warned that future costs, especially for roads and flood control in rapidly growing unincorporated areas, could strain finances. He cited an estimate that six known flood‑control projects could require $700 million, not counting a comprehensive countywide assessment.
Tax rate and employee compensation
The proposed tax rate remains just under 30 cents per $100 of property value, identical to last year. Precinct 3 Commissioner Grant Moody stated he will not support any increase, reinforcing the commitment to keep taxes steady.
County employees will not receive a cost‑of‑living adjustment under the new budget, though workers on existing step plans and career ladders will continue to receive scheduled pay increases. Since 2019, commissioners have approved pay raises totaling more than 23 percent.
Next steps
The budget presentation required no immediate vote. Commissioners have scheduled work sessions for August 25 and September 3, with a final budget and tax‑rate vote set for September 15.
Original reporting: San Antonio, TX News (HLL/CB) — read the source article.
