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Henderson County commissioners debate tax rate, budget shortfalls and judge's donated-salary plan
Summary
At a lengthy budget workshop, Henderson County commissioners discussed changes to meeting-posting rules, approved budget amendments, and wrestled with whether to use unused tax-rate increment to reduce the county's retirement deficit. Debate intensified over a judge's plan to direct part of his general-fund salary to staff, prompting calls for rescission and review under an AG advisory.
Henderson County's commissioners spent much of their Aug. 6 workshop weighing how to close a growing budget shortfall while responding to new state rules and local staffing needs.
The court opened with routine business and quickly moved into budget issues after approving a consent agenda and appointing Commissioner Wilbanks to the East Texas Council of Governments board. Staff and elected officials then worked through department budgets, proposed salary adjustments and options for addressing what the county finance presentation described as a multi-million-dollar gap tied in part to pension liabilities.
Judge (chair) told the court that changes to the Texas Open Meetings Act require meeting notices at least three business days before a meeting and asked staff to adopt a posting policy that sets an 11 a.m. Tuesday deadline for agenda items when meetings fall the following week. The court approved that policy.
Most of the day, however, centered on the 2026 proposed budget and how to reduce a retirement (TCDRS) shortfall without sharply increasing property taxes. Finance staff presented a draft tax rate of 49.7815¢ per $100 of valuation; moving to a voter-approval rate or using unused increment would generate materially more revenue and, the judge said, would allow a sizeable lump-sum payment to the county's retirement fund. Commissioners discussed trade-offs: raising the rate now would increase county revenue but could be perceived as a tax increase by residents even though a separate school-tax exemption program passed by the state will change taxable homestead amounts on many parcels.
Sheriff-led budget items also drew sustained scrutiny. The sheriff asked for higher overtime because cadet training and unfilled positions continue to push deputies into overtime; he also sought increases in radio equipment, inmate medical and food-service contract lines, and capital outlay for vehicles and upfitting. Commissioners tentatively approved planned increases and encouraged use of contingency and available ARPA funds for one-time items.
The workshop turned contentious over a judge's previously announced decision to donate part of his general-fund salary back into county payroll to fund one-time supplements to selected employees. Several commissioners and other speakers raised concerns about the propriety of directing county payroll dollars in that manner and asked for an Attorney General advisory opinion. Commissioner Rashad moved to rescind the earlier allocation motion and listed the specific supplemental amounts to be removed from county payroll; after debate the court took that question up and recorded a vote.
Commissioners also approved a number of technical budget actions in-session, including adoption of Budget Amendment No. 87 to reallocate tax-office salaries effective with the August 18 payroll, and an amendment reallocating state supplement dollars to increase a jail lieutenant's SP22 supplement for 2026 to improve retention and parity with deputies.
What happens next The court recessed to allow staff to prepare the required public notices and said it would reconvene Aug. 8 to finalize the 2026 budget and tax rate. Commissioners asked staff for an Attorney General opinion memo about salary donations and expected to weigh whether to use unused tax-rate increment or fund-balance transfers to make a one-time TCDRS payment.
Key quotes (attributed to speakers recorded in the record): - "This is required by the statutory change effective 09/01/2025, and the Texas Government Code 551.043," the judge said when explaining the new meeting-posting deadline. - On donating his county salary to staff: the judge described the action as "donating it back to the county" to pay specific employee supplements; other commissioners urged rescission pending legal review.
Next steps The court scheduled follow-up budget work and a public hearing on the proposed tax rate; staff will post notices per the new Open Meetings Act schedule and circulate the AG opinion once obtained.
