Dallas Mayor Eric L. Johnson is urging city leaders to protect public safety gains, reduce City Hall spending, expand non-tax revenue and deliver another property tax rate reduction as Dallas prepares its Fiscal Year 2026-27 budget.
In a July 24 memorandum to City Manager Kimberly Bizor Tolbert titled “Fiscal Year 2026-27 Budget Priorities,” Johnson outlined his expectations amid concerns about a projected budget imbalance.
The city’s planned FY 2026-27 budget totals $5.39 billion across all funds, including $2.05 billion for the General Fund. Updated forecasts show the General Fund is out of balance because of slower revenue growth and rising costs, according to a May 6 city update.
Mayor calls for public safety funding, efficiency
Johnson identified maintaining public safety funding as a top priority while directing city leadership to make government operations more efficient.
The mayor called for competitive pay for police officers and firefighters, funding the pension plan and increased recruiting. “Through these investments, we have achieved five consecutive years of violent crime reduction, and we cannot afford to lose this progress,” Johnson wrote.
The mayor’s priorities include:
- Maintaining spending on police, fire and emergency services.
- Improving operational efficiency across city departments.
- Identifying and eliminating waste and excess spending.
- Maximizing revenue sources outside property taxes.
- Reducing the burden on taxpayers through another property tax rate cut.
Johnson also called for the city to focus on core services, standardize procurement, consider moving some services to other public or private providers, charge nonresidents more for certain city amenities and seek public-private partnerships.
“The City’s bureaucracy is simply too large and too expensive,” Johnson wrote. He cautioned against arbitrary across-the-board cuts that could reduce service quality or damage the tax base.
Tolbert will present her recommended budget on August 11. The city will hold budget town halls from August 11 through August 25. Johnson’s office told The Dallas Express that it expects the council to hold a final vote in September.
The city has also held public engagement efforts, including a budget priorities survey seeking resident input on spending decisions.
Budget shortfall creates pressure for cuts and changes
The city’s financial pressure became more visible this summer when thousands of employees began taking unpaid furlough days to help close a current-year shortfall of more than $30 million, as previously reported by The Dallas Express.
City officials cited lower-than-expected sales tax revenue and higher overtime and employee medical costs. Tolbert said the furloughs were not the preferred option but would reduce expenses while protecting jobs, employee health benefits and city services.
The city exempted police officers, firefighters, paramedics and 911 dispatch employees from the furloughs. Dallas Water Utilities, sanitation services and Love Field rescheduled furlough days to avoid disrupting services.
Johnson’s office said the mayor supports the furloughs and Tolbert’s efforts to close the budget gap.
Mendelsohn raises transparency concerns
District 12 Council Member Cara Mendelsohn has questioned the city’s budget management and communication through posts on X.
“The city council didn’t know in advance about staff furloughs. This is a significant management and budget transparency problem,” Mendelsohn wrote July 2.
In a July 30 post, Mendelsohn said she had warned since 2022 about rising city expenses, deferred maintenance, depleted reserves, a looming structural deficit and the need for city management to emphasize efficiency, automation and core services.
There is nothing new about the City of Dallas budget. Here are my comments from 2022:
-should have a lower tax rate
-alarming growth of city expenses
-continued deferred maintenance
-looming structural deficit
-reserves being depleted
-end of ARPA/CRF cash infusions
-prop values… https://t.co/gyqrIYKbwb— Cara Mendelsohn 🟦 (@caraathome) July 30, 2026
Her concerns reflect broader questions about whether spending reductions and efficiency reviews should occur before employee furloughs or reductions in resident-facing services.
Residents debate spending, services and tax relief
The budget discussion comes as city leaders face competing priorities: maintaining public safety, funding infrastructure, providing city services and responding to taxpayer concerns about the cost of a potential City Hall relocation and other spending already approved or planned.
When DX asked how Dallas would fund a potential City Hall relocation amid another anticipated budget imbalance next year, the mayor’s spokesman said officials are not currently considering relocation as part of the budget exercise. That could change once officials better understand the costs and present them to the City Council.
The spokesperson stated, “We need to wait to see what the final numbers and costs will be. That information hasn’t been discussed publicly yet.”
DX also asked about reader concerns over spending priorities amid the current budget shortfall and anticipated imbalance, including the City Council’s March 25 approval of up to $57.893 million for a grant, developer fee and delay reimbursement tied to the Dallas Wings practice facility. A separate project-management contract reduction brought the agenda item’s net total to no more than $56,045,515. DX readers frequently question that spending in emails and social media comments.
The mayor’s spokesman said the decision was “political” and is expected to ultimately contribute to downtown economic development.
The City of Dallas has emphasized that the upcoming budget process will involve council discussions, staff recommendations and public input before final adoption. The city has scheduled budget town halls from August 11 through August 25 to allow residents to review proposed spending plans and provide feedback.
Johnson’s memo reflects his position that the city must address financial challenges through a combination of spending discipline, efficiency improvements and expanded non-tax revenue rather than relying solely on property tax increases.
Tolbert will provide additional details on proposed spending levels, department priorities and potential changes when she presents the City Manager’s Recommended Budget to the Dallas City Council on August 11. The mayor’s office expects the council to hold a final vote in mid-September.
Provided by Dallas Express
