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El Paso County adopts FY2026 budget, raises tax rate and boosts reserves amid warnings of tighter years ahead
Summary
The El Paso County Commissioners Court approved the fiscal year 2026 operating budget and a higher tax rate to strengthen reserves and cover mandated costs, while administrators and commissioners warned the county faces continuing pressure from state mandates and future budgetary constraints.
The El Paso County Commissioners Court on Sept. 15 approved the countyFY2026 operating budget and adopted a higher tax rate intended to shore up reserves and cover rising mandated costs.
County administrators said the adopted all-funds budget totals $635.6 million, with a general fund of $495.4 million; the budget includes an appropriation that raises the county—und emergency reserve to roughly 11% and allocates $752,600 toward transit match obligations. The courtapproved a 3% tax-rate increase compared with the prior year; about half of that increase is dedicated to bond-related projects, and the remainder is placed in reserves per the courtpolicy.
Why it matters: county staff emphasized that while the budget prevents immediate cuts to core services, the county faces continued financial pressure from state-imposed mandates and shrinking flexibility; officials urged early work on strategic planning and community engagement about priorities and potential service reductions.
Key details: the adopted budget incorporates a 5% operational reduction requested of departments, absorbs positions previously funded by ARPA into the general fund in part, and sets aside a one-time adjustment to county health-insurance lines to capture a risk-pool contribution reduction. Staffprojected a preliminary FY2025 ending fund balance of roughly $85.1 million (before FY2026 actions) and noted certified revenues of $415.5 million used in the FY2026 plan.
Commissioners and staff warned the public that the countymay see continuing declines in available discretionary funds as unfunded state mandates grow. Judge Samaniego, Commissioner Butler and others said the county must begin detailed program-level reviews and then bring the public into decisions about which nonstatutory services can be reduced or replaced by alternative funding.
"We cannot add expenses without either reducing other expenses or increasing revenues," County Administrator Betsy Keller said at the hearing, urging strategic prioritization. Commissioner Stout said the statelegislative environment continues to make local budgeting harder and urged coalition-building with other counties and the public to oppose unfunded mandates.
The court adopted the budget by motion: Judge Samaniego moved to adopt, Commissioner Stout seconded and the motion carried.
