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Dallas County emergency management warns 103% property‑tax cap will force cuts and could bar some federal grants
Summary
Dallas County emergency management staff told commissioners a new state law capping year‑to‑year levy growth at 103% will create about a $55,000 shortfall for next budget year, forcing cuts to training, consumables and possibly the refusal of federal grants that require local cost matches.
AJ Sealy, Dallas County emergency management director, told the commission that a recently enacted property‑tax provision will limit the agency’s allowable levy growth to 103% beginning the fiscal year that starts July 1, 2027.
“This law as written is pretty strict,” Sealy said, and warned that under current projections the cap would leave the emergency management commission with a deficit of about $55,000 — roughly a 10% reduction in program funds. He said the commission’s taxable levy baseline for the coming year is $453,000 and that the cap would allow a maximum levy of about $466,590 in fiscal year 2028 after the 3% limitation is applied.
Sealy outlined how the cap interacts with the commission’s budget structure: the commission typically uses its commission fund and some carryover to reduce levy pressure, and the agency expects about $41,000 in grant revenue next year. Without additional one‑time carryover or other offsets, Sealy said, “we have a pretty sizable shortfall,” and listed likely reductions such as cutting consumable spending (office supplies, minor equipment, fuels, vehicle repairs), training and certain outlays.
He also warned that the cap could force the commission to decline some federal grants because of local cost‑match requirements. “Our hazardous materials emergency preparedness grant requires a 10% cost match,” Sealy said. “We may not have the money to make 10%, which means we’re gonna turn down $9,000 because we don't have $1,000.”
Commission discussion focused on options. Sealy said the commission has roughly $30,000 in carryover from a current staff vacancy that could be used short term. He listed potential responses under consideration: pursue a legislative fix, use carryover as a one‑time offset, offload or reassign programs to other entities, cut discretionary and consumable items, or explore shared services or consolidation with neighboring counties.
Commissioner Dirk Kavanaugh, mayor, praised the county’s emergency program and urged urgency in finding solutions: “I’m very proud of what AJ and this county do, and I brag about it all over the nation,” he said, while noting the need to preserve core capabilities.
Sealy said legal clarification of the new law is pending and that the executive committee recommended getting that guidance before finalizing budget decisions. He said the commission may need to hold additional meetings over the next two to three months to refine options before the commission’s budget deadline in February.
Next steps: staff will seek legal clarification about how taxable pass‑through dollars and certain funding sources count under the 103% cap, continue to explore grant and cost‑sharing options, and present more detailed proposals to the executive committee and the full commission ahead of the February budget publication deadline.
