September 1, 2010 -- In November 2009, Dallas County projected a shortfall of $65 million for Fiscal Year 2011. Since that date, the Budget office has proactively prepared for Fiscal Year 2011 budget by compiling suggestions for cuts and has continued to do so through 2010 right up to August 31th. Through adjustments, budget cuts, and better than expected property values, the shortfall was reduced slightly.
In order to address the shortfall, the county continued cost cutting measures adopted in 2009 that included:
- 90-day rolling hiring freeze
- Stopping equipment purchases unless for emergency purposes
- Eliminating discretionary travel unless it was funded by departmental discretionary account(s) or grant funds
In addition to these measures, the county again requested that each department submit a budget reflecting 10% in reductions over the past three (3) years.
In those three (3) years, we have cut our budget by $119 million and eliminated 375 positions, all without a tax increase until this year. Even with the increase this year of 1.5 cents, we will not be at the effective rate. This would increase the amount the average homeowner in Dallas County would pay by $1.58 per month or $19 per year.
This year, we have proposed to delete 214 positions and have cut $24 million in expenditures with a remaining projected shortfall of $22.5 million.
Dallas County’s primary source of revenue is through property taxes and we have maintained the lowest tax rate in the State with the exception of Sutton County (population approximately 4,000) with a tax rate of 20.31 cents. I have taken a very conservative approach to taxes for the 16 years I have been on the Commissioners Court. The tax rate has been increased four times, decreased four times, and remained the same seven times over the past 15 years. The primary driver during the years we had to increase the tax rate was the jails. We are under a Federal Court order and State mandate that must be met and we have expended or incurred close to $200 million to bring the jail into compliance in order to be certified. When looking at the combined tax rate of Dallas County and the Dallas County Hospital District, Dallas County still continues to maintain the combined lowest rate as compared to other large urban counties that also have a public hospital district. Our cap, according to state statute, is 80 cents and we are currently at 22.81 cents, which is an incredible feat, especially since we are on course to being debt free by 2021. I know of no other county in the state or country that can boast such a low tax rate, AAA bond rating by both rating agencies, and on target to being debt free.
I believe that money should be left in the taxpayer’s pockets and if an increase is needed, then and only then should we increase the tax rate. I believe that we are in that situation today. We have diligently scrubbed our budget over the years - department by department - and have cut and cut to the point where it is having a major affect on the employees and services of Dallas County. I personally have reduced my staff from 35 employees to 8, which is a 77% reduction, in an effort to lead by example. I continue to look for new ways to impact the budget in a positive manner through collaborations for sharing costs as well as implementing new projects to bring in new revenues sources.
It is my hope that the taxpayers of Dallas County would support those County elected officials that work hard day in and day out to manage the finances of Dallas County in a responsible manner. We give money back to the taxpayers in the good years without socking it away because it’s the right thing to do. Hopefully, citizens will see that we have acted responsibly and they will continue to be supportive during a particularly challenging time for the County.
Respectfully,
Mike Cantrell
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