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Harris County’s Forced Tax Default Means Cut Jobs and Delays

The Republican-led effort lowered the county’s property tax rate and will result in the elimination of approximately 560 vacant positions, postpone a sheriff deputy cadet class and delay some flood control projects.

(TNS) — Harris County, Texas, will eliminate more than 500 vacant jobs, delay some flood control projects, postpone a sheriff deputy cadet class, and cancel raises and cost of living adjustments for county law enforcement after the default to a lower tax rate forced by the two Republican commissioners.

Precinct 3 Commissioner Tom Ramsey and Precinct 4 Commissioner Jack Cagle skipped six straight Commissioners Court meetings to block the adoption of any property tax rate by the Democratic majority, saying taxpayers deserved a break amid soaring inflation and the ongoing spread of COVID-19.

With early voting underway and three members of Commissioners Court on the ballot, the county's annual budget process also played out amid escalating political rhetoric, with Republicans and Democrats accusing one another of defunding the police.

State law requires a quorum of four members of the court to adopt a tax rate. By preventing the court from setting the rate last week — the last week it legally could — the Republican commissioners forced the county to default to what is known as the no new revenue rate, the levy at which the county will take in the same revenue as last year, plus $45 million from property added to the tax rolls in the last 12 months. Only $15 million of that additional revenue will go toward operations, the county budget office said recently; the remaining $30 million will be used for debt payments.

The no new revenue rate is 53 cents per $100 of assessed value, down from the previous rate of 58.1 cents. In a bid to reach a compromise with Cagle and Ramsey, Precinct 2 Commissioner Adrian Garcia had proposed a rate 56.3 cents, 1.2 cents lower than the rate originally proposed by the Democratic majority. It would have included 200 additional members of law enforcement. Cagle earlier had pitched a rate of 55.6 cents and included 200 new lawmen. For the owner of a $300,000 home, the difference between the two commissioners' proposals would have been about $16.

Cagle and Ramsey skipped the discussion-only meeting to debate the proposals, with Cagle saying he did not trust his Democratic colleagues not to try to force a vote even after the county attorney said the court legally could not take a vote at that meeting.

The budget impasse was the longest and bitterest in decades, with local Republicans blasting the Democrats for expanding government and failing to address rising crime and the Democratic majority, led by County Judge Lina Hidalgo, criticizing Cagle and Ramsey for forcing cuts to health care services of the county's neediest residents and canceling raises for the sheriff, constables and district attorney's office.

County officials originally proposed a $2.2 billion budget, but the court ended up adopting a $2 billion plan last month after Cagle and Ramsey began boycotting meetings.

Under the no new revenue rate, departments lost proposed budget increases — including $5.4 million for the district attorney's office and $16.6 million for the sheriff's office that would have funded patrol and administration.

Hidalgo said at Tuesday's meeting that she expected Republicans to put the blame for those losses on her.

"I wouldn't put it past them, because they were the ones who failed to show up," Hidalgo said. "But I am very concerned for the future of the county's financial stability."

Budget Director Daniel Ramos said departments have eliminated an estimated 560 vacant positions as a result of the lower-than-expected tax rate.

He said most of those positions were planned to be filled and that in some cases, departments have used savings from not filling vacant positions to pay for other expenses such as contractors, overtime and maintaining services. Eliminating those vacant positions will mean reduced services in those departments, including the Harris County Institute of Forensic Sciences, he said.

"IFS has medical examiner vacancies because of how specialized the position is, so they use the savings from positions being vacant to offset medical contractors to complete autopsies," Ramos said. " Harris County will do less autopsies because they don't have that funding anymore."

The eliminated vacancies in the sheriff's office will result in the department reducing the number of people it can hire and the amount of overtime it can pay patrol officers.

The $16.6 million loss for the sheriff's office is the equivalent of 175 entry-level deputies, according to a memo from Ramos.

Jason Spencer, a spokesman for the sheriff's office, said Sheriff Ed Gonzalez will decide what gets funded and what does not as the department makes "some tough decisions."

The postponed cadet class could be restored later, Spencer said.

"We expect to continue to lose deputies at the usual attrition rate, so it might be a situation where we have a cadet class down the road just to keep our heads above water with staffing," Spencer said. "It wouldn't be adding positions. It would just be replacing ones that we're able to afford."

Ramos said county staffers, including law enforcement officers, are feeling the effects of the county receiving less tax revenue than expected as planned cost of living adjustments and pay increases have been canceled.

"Most departments were able to absorb it into their vacant positions," Ramos said. "We don't have a final number quite yet, but there are hundreds of vacant positions that got eliminated across basically all departments."

The Harris County Flood Control District lost its proposed $23 million increase, while the Harris Health System budget decreased from a proposed $957 million to $822 million.

Some flood control maintenance projects will be deferred to future years, Ramos said in a memo to county leaders last month.

"The type of projects that will be deferred include erosion repair, outfall repairs, sediment removal and conveyance improvements," Ramos said. "Further deferral of maintenance projects will increase the risk of infrastructure failures during flood events."

Additionally, the lower funding for the flood control department could jeopardize a $290 million federal grant for sediment removal that requires the county to advance the cost of the project before being reimbursed.

At Harris Health, the county's safety net hospital district, potential effects of the lower tax rate include a delay in the opening of a facility that would expand capacity for endoscopy services. The expansion of urgent care clinic hours, chronic disease management programs and specialty care services in the community also are being evaluated for elimination, reduction or delay, Ramos wrote.

To comply with statewide minimum standards, the county will move forward with a $20 million planned increase in funding for the Harris County Jail.

To offset that, the budget office is recommending the county make cuts to other services including cybersecurity upgrades, fuel costs and the implementation of a pay equity study.

Ramos estimated that, because of inflationary conditions, it will cost departments 10 percent more to maintain the same services as the previous year. Department heads will need to find ways to absorb those additional costs.

"In sheriff patrol by itself, they're having to eat $2.4 million of additional health care costs," Ramos said. "That's like the equivalent of 24 deputies."

Though the tax rate cannot be changed after Friday, Commissioners Court can still approve supplemental funding for departments, according to First Assistant County Attorney Jonathan Fombonne.

"Legally speaking, you can make adjustments to the budget throughout the year," Fombonne said. "Obviously, it's dependent on how much money is available."

While adopting the no new revenue rate is not unheard of, most Texas counties choose to levy a higher tax rate. This year, officials in conservative counties such as Collin and Montgomery chose to adopt tax rates above the no new revenue rate.


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