After months of discussion, Bexar County commissioners on Tuesday approved a $2.6 billion budget for fiscal year 2026-27 with no tax rate increase. The budget will reduce the county’s reserves by nearly $68 million but keep them above the required minimum.
The tax rate passed unanimously; the budget itself passed 3-2, with Precinct 3 Commissioner Grant Moody and Precinct 4 Commissioner Tommy Calvert voting against it.
Moody cited the $68 million reduction in reserves as one of his primary concerns. He has pushed for greater fiscal restraint throughout the budget cycle and said the county will still need to cut $25 million to $30 million in future budgets to avoid deficits.
“I don’t think we have a revenue problem. I think we need additional spending restraint,” Moody said.
Calvert pointed to the lack of a cost-of-living increase for county employees and the possibility that the state Legislature could limit annual growth in county property tax revenue during the 2027 session. His concerns follow Gov. Greg Abbott’s “Empowering Texas Taxpayers” plan, announced in June, which calls for changes to the state’s property tax system.
Calvert also cited concerns about checks and balances, a lack of analysis of program cuts and other process issues.
“We are operating like we’re a Blockbuster Video that we will have a tactic of holding the line as things have been, but our strategy actually needs to change because the environment has changed from one of cooperation between state and local government to one of destroying state and local government,” Calvert said.
Precinct 1 Commissioner Rebecca Clay-Flores said the budget is legally balanced and noted that county employees have received cost-of-living adjustments totaling about 23% over the past few years.
Also Tuesday, County Manager David Smith announced he will retire when his contract expires at the end of the year.
With County Judge Peter Sakai leaving office after the Nov. 3 election, a new judge and a new county manager will take on the county’s budget challenges next year. Smith said those challenges could eventually include the first tax rate increase in more than 30 years.
He said he was comfortable recommending a flat tax rate this year, even in a tough environment, in part because he expects growth in the unincorporated parts of the county to create “unprecedented demands for infrastructure to support that growth,” including roads, maintenance of new subdivisions and flood control.
The change order
During the COVID-19 pandemic, Bexar County received $389 million in federal American Rescue Plan Act (ARPA) funding, some of which paid for staff across various departments. The federal funding for those positions runs out Dec. 31, leaving them unfunded for the remaining nine months of the fiscal year unless commissioners move them into the general fund.
When staff first presented the proposed budget Aug. 18, it included funding through Dec. 31 for 91 post-ARPA positions. After that date, the positions would move to contingency unless commissioners shifted them into the general fund.
Moving the positions from contingency to the general fund would require the county to fund them for an additional nine months, through the end of the fiscal year, and each position carried over into the county budget creates a recurring cost.
Exceptions include Specialized Multidisciplinary Alternative Response Team (SMART) positions in the Bexar County Sheriff’s Office, which are protected by a state law prohibiting reductions in law enforcement positions. The SMART program pairs mental health professionals with specially trained emergency responders to handle cases that may escalate because of mental health concerns.
Positions in the County Auditor’s Office were also excluded from the reduction plan because state law allows the office to increase its budget without Commissioners Court approval. Together, those exceptions account for 11 positions and about $1.07 million in funding.
The remaining 80 positions, totaling $5.9 million in contingency funding, were tied to six programs:
BiblioTech Navigators: Help residents access digital resources and technology.
Domestic Violence Impact Courts: Handle court cases involving domestic violence.
Pre-Indictment Court: Reviews criminal cases and considers plea agreements before formal charges are filed.
Preventative Health: Provides health screenings and services, including programs addressing domestic violence.
STAR Program: Provides support and case management for people affected by domestic violence through the county’s domestic violence hotline.
TX Fast Track 2: Trains participants for entry-level jobs in maintenance and advanced manufacturing.
At Monday’s budget workshop, Budget & Finance Director Tanya Gaitan said the county is funding about $2.2 million in post-ARPA positions.
Looking ahead
While the county approved a balanced budget this year, its long-term financial challenges remain. With a new judge and county manager taking over, Commissioners Court will face renewed pressure in 2027 to weigh cuts as federal funding expires and reserves decline. Those decisions could shape the county’s fiscal outlook and determine whether it can maintain current services without what would be its first tax rate increase in more than 30 years.
The FY 2026-27 budget takes effect Oct. 1.