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Dallas City Council Approves Record $5.2 Billion Budget Amid Rising Costs
The Dallas City Council has approved a $5.2 billion budget for fiscal year 2025-26, focusing on public safety and infrastructure, despite a projected $34 million shortfall due to rising expenses.
In a decisive move on September 17, 2025, the Dallas City Council approved a $5.2 billion budget for the fiscal year 2025-26, marking the largest in the city's history. The budget, passed with an 11-3 vote, reflects the council's commitment to enhancing public safety and infrastructure, even as the city grapples with a projected $34 million shortfall.
The approved budget includes a $1.9 billion allocation for the General Fund, a 3.1% increase from the previous year. A significant portion of this increase, approximately $63.1 million, is earmarked for public safety, encompassing both the Dallas Police Department and Dallas Fire-Rescue. This funding aims to hire 350 new police recruits, bringing the total number of officers to 3,424—the highest since 2016. Additionally, the budget addresses the fiscal health of the Dallas Police and Fire Pension System and the Employee Retirement Fund through increased city contributions.
Despite these investments, the budget also introduces cost-saving measures. Notably, the council approved a reduction in the property tax rate from 70.47 cents to 69.88 cents per $100 valuation, marking the tenth consecutive year of property tax cuts. Furthermore, the property tax exemption for residents aged 65 and over or those living with a disability has been increased from $153,400 to $175,000.
However, the budget is not without its challenges. The city faces a projected $34 million shortfall, primarily due to rising overtime costs for police and fire departments and higher-than-expected medical insurance expenses for city employees. In response, the city has implemented a hiring freeze on non-public-safety positions and is cutting non-essential purchases to mitigate the deficit.
The budget also includes the closure of the Skillman Southwestern Branch Library, a decision that has sparked controversy among residents who value the library's services. Additionally, the council voted to eliminate funding for state lobbyists, reallocating $339,000 to further reduce the property tax rate. This move aims to rely more on in-house staff and council members for state advocacy.
As the budget takes effect on October 1, 2025, and runs through September 30, 2026, Dallas residents can expect continued investments in public safety and infrastructure. However, they may also experience the impacts of service reductions and increased fees as the city navigates its financial challenges.ℹ️ Researched and summarized from public reporting. Check the sources below.
