Bexar County officials entered the 2027 budget cycle intent on avoiding any tax‑rate increase. After staff presented a $2.6 billion plan that omits cost‑of‑living adjustments for employees, funds only a few critical infrastructure projects, and taps the rainy‑day fund to keep pandemic‑era programs alive, commissioners now face a stark choice.
Revenue decline forces a hard look at taxes
Property‑tax collections have slipped for the first time in recent memory. Average home values fell 0.11 % in 2026 and the county is projected to collect roughly $3.7 million less than the prior year. County Manager David Smith noted that while Bexar has traditionally relied on growth in its unincorporated areas to offset market slowdowns, that cushion has faded.
“We don’t often experience a literal drop in property‑tax revenue,” Smith told the commissioners. “We’ve experienced declining growth, stagnant growth, but a literal drop—even though it’s a small one—is unusual for us.”
Infrastructure needs outpace current funding
Smith warned that explosive growth in the county’s unincorporated regions will soon demand a major road‑and‑flood‑control program—something the county has not undertaken since 2007. He estimated that over the next five to ten years, capital needs could run into multiple billions of dollars, a sum that cannot be covered by the existing tax rate.
“I’m seeing legitimate requests and demands that the growth is creating on this county that could easily be multiple billions of dollars in capital need,” Smith said. “That’s simply not going to be financed with our existing tax rate.”
Technology and security add new pressures
The budget also flags emerging costs tied to artificial‑intelligence adoption. Smith cautioned that a cautious approach could lead to information‑security vulnerabilities unless the county begins to invest now.
“One of the reasons I’m here today proposing a budget built on no change in the tax rate is because I want the court to begin to consider what I believe will be major challenges you will face in the future,” he added.
Tax‑rate scenarios laid out
Tax Assessor‑Collector Albert Uresti presented the state‑mandated scenarios. To maintain the so‑called “no new revenue rate,” the county would need to raise the levy from about $0.30 to $0.31 per $100 of valuation. The law also permits a higher increase—up to $231 per year on an average home valued at $341,000—without a voter referendum.
Commissioner Justin Rodriguez acknowledged the numbers, saying, “Revenues will be down if we keep the existing tax rate as is.”
Cash reserves shrinking
The county’s contingency fund has fallen from $408 million three years ago to $234 million this cycle, as ARPA (American Rescue Plan Act) dollars expire and pandemic‑relief funds dwindle. The proposed budget would continue using the reserve to pay staff whose ARPA‑funded salaries end this year, including workers in domestic‑violence courts, preventative health, and the SMART mental‑health response team.
Most commissioners support keeping those programs but have not identified specific cuts to offset the cost. Capital projects left on the books also remain unreviewed, prompting Commissioner Grant Moody to ask, “When are we going to think about shifts on the capital plan?”
Next steps
The commissioners have two work sessions scheduled before a final budget vote on September 15. While no tax increase has been enacted in more than three decades, Smith said the current proposal gives the court a clear picture of what a rate hike would look like, leaving the decision to the elected officials.
“They haven’t raised the tax rate in 30‑plus years, and I’m not assuming they will in producing this,” Smith said. “But with this proposed budget, they know more or less what I think that would look like, and they can decide whether that’s an appropriate budget for the county next year or not.”
Original reporting: San Antonio Report — read the source article.
