Budget director previews FY2026 outlook, highlights revenue timing and staffing costs

Carmen Arrieta Candelare, director of budget and finance, presented an overview of the county's fiscal-year 2026 budget to the Commissioners Court on Nov. 20, 2025, outlining current-year revenue timing, major categories of expenditures and several risks and opportunities to manage in FY26.

Numbers presented: Arrieta said the county adopted a budget in September and emphasized that the general fund comprises the largest share of spending. She reported the general fund budget at $495,486,000 and said current-year revenues total $415,579,000 (through October). She noted property taxes ($284,710,000) and sales taxes ($84,000,000) as major revenue sources. Arrieta also said the county had received its first tranche of bond funding in mid-2025 and that some items — including the bond issuance allocation — will come to the court to break down amounts into the proper budget accounts.

Management priorities: Arrieta described planned steps to manage FY26, including reviewing revenues against auditor estimates, pursuing indirect-cost recovery on grants as a potential revenue source, and examining utility-savings opportunities. She emphasized salaries and benefits — about 70% of budgeted spending — as central to mid-term planning and said staff are modeling different COLA (cost-of-living-adjustment) scenarios for FY27.

Budget risks and next steps: Arrieta flagged multi-year operating costs associated with new bond projects (e.g., utility, security and staffing for new facilities) and the need to build a three-to-five-year forecast. She also noted work to close out American Rescue Plan funds and to scrub agenda numbers before final presentations. The county auditor reported the formal audit work is underway and expects audit completion by March 31, 2026.

Ending: Commissioners thanked Arrieta for the forward-looking approach; staff will return with more detailed personnel-cost estimates and program inventories to inform FY27 planning.