Dallas county seriously underestimated the amount of property tax revenue they’d be taking in this year, resulting in a 13 million dollar budget shortfall.
Until this was discovered, Dallas county was expecting no trouble paying the bills this year. According to County Budget Director Ryan Brown, the error was discovered last week. It happened during last year’s allocation of general fund expenditures, which totaled 513 million at the time, The county auditor’s office incorrectly calculated the amount of property value that would not be subject to tax.
According to dallasnews.com, the formula being used to calculate this value was old. It used a value from 2015, when the amount of property that had reached the property tax cap amounted to $6 million. In actuality, this figure was around $13 million. Public services like courts and the county clerk’s office will likely see cuts to bridge this gap in the coming fiscal year, according to Commissioner John Wiley Price.
The county has also used some of its reserves to make up the difference, and has more left should the need arise.
County Commissioners are expected to discuss the issue today at Commissioner’s Court, as well as whether or not to cut county spending enough to lower property tax rates. This would lower resident’s property taxes, but would also lower the amount of tax revenue taken in by the county.