The Dallas City Council has approved a budget of $5.7 billion for the 2026-27 fiscal year, a decision that will result in significant cuts to city services and nearly 300 job eliminations, including 108 layoffs. This budget was passed in a 10-5 vote during a council meeting, signaling a shift that will affect nearly every aspect of municipal operations.
City Manager Kim Tolbert stated that the necessary cuts were driven by rising costs that are outpacing revenue growth. The approved budget outlines substantial reductions, including the elimination of employee positions and a restructuring of health insurance plans for city workers.
Despite the cuts, public safety funding remains a priority, with over 65% of the general fund allocated for police salaries, pensions, and staffing. The plan also includes a modest reduction in the property tax rate, which is expected to save homeowners with a median property value of $347,000 approximately $61 annually.
All neighborhood libraries will maintain a six-day operation under the new budget; however, this will involve laying off 35 staff members and reducing hours on Sundays and Mondays at most branches. Furthermore, city employees, including first responders, may be required to switch from a Preferred Provider Organization (PPO) health insurance plan to a Health Maintenance Organization (HMO) plan in a bid to address a looming $10 million budget deficit.
Discontent has been voiced by the Dallas police and fire associations, who express frustration over inadequate salary negotiations and the potential loss of the PPO health plan. Councilwoman Cara Mendlesohn has proposed establishing a fund to facilitate adjustments during ongoing negotiations with first responders, suggesting that funds could be sourced from eliminating the city’s single-family rental inspection program, a move opposed by code enforcement officials.
Mendlesohn emphasized the importance of aligning funding with public safety commitments, stating, “We can’t have the mayor on a national stage saying public safety is number one and then not fund it.” Following the budget approval, the council also approved an amendment to allocate additional resources to libraries, allowing some to operate an extra day each week.
Concerns were raised about possible legal repercussions if the city fails to meet the requirements of Proposition U, which mandates maintaining a minimum of 4,000 police officers. While the budget has been finalized, discussions regarding technical details of previous amendments are ongoing within the council.
