Hidalgo County officials preview $344 million general-fund budget, plan $50 million in capital projects

Hidalgo County budget staff presented a proposed fiscal 2026 general-fund budget and capital plan at a commissioners court workshop, saying current revenues total about $344,000,000 and recommending use of portions of the county’s unassigned fund balance to balance the budget.

The presentation, delivered by budget department staff, said property-tax revenue was listed in the presentation as “3.00 3,000,000” (the amount was not specified clearly in the transcript), interest revenue at $5,000,000 and other fees at $35,000,000, yielding the $344,000,000 figure. Staff said the county has an unassigned year-end fund balance of just over $100,000,000, that $20,000,000 was previously set aside in 2025, and that the department is proposing to use $30,000,000 of unassigned fund balance for 2026.

Why it matters: the plan pairs near-term operating requests with a one-time capital push, while keeping the overall budget close to the adopted 2025 level. Presenters said the 2025 adopted budget totaled about $316,000,000 and that DBM (Department of Budget and Management) is proposing an operating increase of roughly $28,000,000 plus a $50,000,000 capital improvement program (CIP) funded from the general fund.

Key proposed changes and clarifications - Personnel: Departments initially requested 112 new positions (a raw request estimated at about $8,200,000). After job audits and vetting with human resources and commissioners, staff recommended funding roughly 30 positions at an estimated $1,300,000. The presenter said some previously approved personnel actions for the current year aggregate about $1,800,000.

- Compensation and benefits: The recommended budget includes a 5% cost-of-living adjustment that staff estimated would total about $8,830,000. Staff also identified $510,000 to cover recently enacted judicial pay increases described in the presentation as required by a recently passed statute. Projected county retirement contributions were discussed; staff presented a number around $3,000,000 tied to a retirement-rate change, but the transcript contained unclear figures and staff said they would verify them.

- Out-of-county incarceration (room and board): Staff reported that out-of-county jail costs were budgeted at a lower level than prior years—reduced from more than $7,000,000 to $3,000,000 for the projection—while noting current monthly invoices and activity remain under review and could yield actual costs somewhat higher (presenters said $3.3 million was possible). Staff also noted the county currently has about 100 inmates housed outside county facilities and referenced a separate projection that the county could need roughly 800 additional beds within five years.

- Biosafety lab and ARPA: The presentation listed $662,000 in operating costs for the biosafety laboratory; staff said those operating salaries remain covered by ARPA through 2026 and that the $662,000 is for operations only.

Capital plan, precinct allocations and road and bridge funding Budget staff proposed a $50,000,000 general-fund-funded CIP for 2026. The presentation said DBM’s goal was to allocate $15,000,000 of general fund resources to CIP projects in 2026 and described specific requests including $8,500,000 for countywide facility improvements, $5,000,000 for law-enforcement vehicles, and $6,500,000 under review for other initiatives. Staff also proposed allocating an additional $5,000,000 to each precinct for road projects on top of a $5,000,000 allocation the county had received earlier in 2025.

For the Road and Bridge Fund, staff listed estimated motor-vehicle registration fees at $7,750,000, other revenues at $3,900,000, interest at $500,000 and an estimated fund balance near $7,000,000. Staff proposed increasing the transfer from the general fund to Road and Bridge to about 11.6% (roughly $700,000 more than last year) for a total Road and Bridge budget of about $29,200,000; staff said last year’s Road and Bridge budget was about $24,400,000.

Process, schedule and public hearings Budget staff told commissioners they plan to publish the proposed budget and run the statutorily required public hearing(s) ahead of a planned commissioners-court vote. Staff said the county will file materials with the clerk and run the required newspaper notice (the presenter stated the county is required by law to publish once) and that they are targeting an adoption date in late September. Staff said final adjustments could still be made between now and adoption and that they plan at least one more workshop to present supporting detail behind the summary figures.

Reaction from commissioners and next steps Commissioner Villalreal pressed for more road-and-bridge funding for his precinct, saying, “I have the labor force and the equipment to do it, but we have…I don’t have the money to do to pave.” The presenter responded that DBM was proposing an additional $5,000,000 per precinct for projects plus increases to precinct allocations already included in the Road and Bridge transfer.

Commissioners also asked for more detailed lists and backup: one commissioner requested the detailed list of recommended new positions so the court could review specific job titles and costs; staff agreed to provide the detailed breakdown in advance of the next workshop. Commissioners asked for an efficiency study and up‑to‑date invoices on out-of-county jail costs; staff said they would provide a recent efficiency study timeline and invoice data.

The workshop concluded with a procedural motion to adjourn, which passed on a voice vote.

Ending: Budget staff said they will supply the detailed backup behind summary totals before the next workshop and proceed with the publication and public‑hearing schedule required for final adoption.