Fort Worth plans to reduce budget in 2026 due to sluggish growth in tax revenues.
Rewritten Article:
In a move to prepare for potential shifts in revenue, Fort Worth is eyeing a proposed general fund budget of $1.097 billion, marking an increase of $40.2 million or 3.81% over the previous year's budget. This revelation came during a City Council briefing on April 29, where city manager Jay Chapa and his team laid out their plans for the upcoming budget adoption process, spanning from the present through summer, culminating in adoption in September.
The looming question is the estimated revenue the city expects to garner from taxpayers following the Tarrant Appraisal District's approval of a reappraisal plan last year, freezing residential property values for the 2025 tax year. Given that property tax collections form the city's primary operating budget, this uncertainty looms large over the proposed budget.
Preliminary TAD values are set to come in on April 30, providing city staff with a better idea of the anticipated revenue. Certified values are expected on July 25, with an updated budget target to be presented to the City Council during the next budget workshop in May.
City staff have also kept a close eye on state legislation that could potentially affect property taxation and local budgets. A bill, with bipartisan support, is underway in Austin that could require all appraisal districts to conduct annual reappraisals, effectively reducing the two-year cycle currently in place by the TAD.
School districts across Tarrant County have expressed concerns about the property value freeze, fearing unintended consequences for their budgets and potential reductions in state funding.
To counterbalance increasing costs with slow revenue growth, each city department has been asked to trim its target budget by 1%. Department heads have been tasked with finding efficiencies within their departments, looking at positions and programming for potential savings. This collective effort would generate nearly $7.6 million in savings, according to budget- and planning-focused FWLab director Christianne Simmons.
In addition to these mandatory 1% reductions, departments included in the general fund must also present budget proposals capable of withstanding further 3% cuts if needed.
The savings measures are crucial, according to Chapa, to ensure that departments can plan for budget cuts with minimal impact to residents. Council member Elizabeth Beck, however, voiced concerns about reducing funding to the fire department as it prepares to absorb 650 MedStar employees during the transition to an in-house EMS system this summer.
However, Chapa stressed that the city will not have a clear picture of its financial situation until it receives preliminary TAD values on April 30. In the meantime, the city will continue its strategic planning, with the next budget workshop meeting scheduled for May 13 at City Hall.
Cecilia Lenzen is a government accountability reporter for the Fort Worth Report, bringing this news to the public under the Creative Commons Attribution-NoDerivatives 4.0 International License. For more information on the editorial independence policy, please click here.
[1] The Fort Worth Report - High cost of living in Tarrant County driving residents out, study finds[4] The Texas Tribune - How a homestead exemption hike could mean big savings for Texas seniors[5] The Fort Worth Report - Fort Worth property values to remain the same for 2025, TAD says
- The Fort Worth Report's government accountability reporter, Cecilia Lenzen, discussed the city's proposed general fund budget of $1.097 billion, a 3.81% increase from the previous year, in light of potential revenue shifts.
- In anticipation of preliminary TAD values to come on April 30, city departments are working on budgets with potential cuts of up to 3%, as the property tax collections form the city's primary operating budget.
- The Fort Worth Report emphasized that City Manager Jay Chapa and his team have been closely monitoring state legislation that could affect property taxation and local budgets, including a bill underway in Austin that could require annual reappraisals, instead of the current two-year cycle.
- Departments across Fort Worth are seeking efficiencies within their operations and have been tasked with finding savings, which, according to FWLab Director Christianne Simmons, could generate nearly $7.6 million in savings. Some council members, however, raised concerns about potential impact on specific departments like the fire department, which is set to absorb 650 MedStar employees this summer.
