Two weeks ago, I noted that city officials need to keep an eye on sales tax receipts, which aren’t keeping pace with projections. City officials responded by going into the hotel business. (Note to city: It’s spelled "comparables," not "comparibles.")
Yesterday comes news that Dallas County could be in worse shape. The budget is short almost $20 million — the county has spent $9.9 million more than budgeted, and collected $10.7 million less than expected. The total county budget is about $450 million, which means it’s about four percent short.
The county doesn’t collect a sales tax, and its key revenue source is the property tax, which accounts for about half of income. County officials, having been aced out of the hotel business, had to come up with a new plan to make up the shortage: Batten down the hatches. No raises next year, and meetings to figure out where else to cut. Given that the county is required to clean up the jail mess, which means overtime there can’t be reduced, I would expect to see the hatchets come out for hiring and road repair and construction. Good news, huh? Longer waits on line and even worse roads.
Is anyone at city hall paying attention? (Other than checking out graduate programs in hotel-motel management? Cornell is very good, by the way — I’ve interviewed people who teach there.)
Actually, I don’t think we’ll see any panic from Marilla Street until someone has time to sort the through the 2008 assessments, which were released by the Dallas Central Appraisal District a couple of weeks ago. If overall assessments increased enough, that may cover the deficits. Of course, the county budget types don’t expect more than a three percent increase in property values, which they don’t think will help them. Which isn’t good news for the city.
Which will then be time to panic.
