DALLAS — The city faces a projected $51 million budget gap for the next fiscal year while working to close a $30 million shortfall in the current budget, prompting questions about possible job cuts and other spending reductions, District 3 Council Member Zarin Gracey said.
Gracey said he wants the city to preserve as many jobs as possible as officials consider ways to balance the budget.
“It’s hard to say,” Gracey said when asked whether jobs could be at risk. “That would be the last thing I would want to do.”
Dallas has already implemented several cost-cutting measures to address the current shortfall, including a hiring freeze, reduced travel spending and furloughs for most city employees.
Most city workers will take three mandatory unpaid furlough days, with exceptions for law enforcement officers and some service workers. The first furlough took place July 10, while the remaining furlough days will occur Sept. 4 and Sept. 28.
Gracey said the city has protected positions when possible in previous budget challenges and suggested that officials examine executive compensation as they work to close the larger projected gap.
“Maybe we’re a little top heavy,” Gracey said. “Maybe not necessarily in terms of the number of executives, but what we’re actually paying them.”
Gracey said he plans to ask the city’s chief financial officer to calculate the potential savings from reducing salaries for top executives by 3%, 4% or 5%.
He also said the city must examine ways to increase revenue.
Dallas has experienced weaker sales tax growth than some neighboring cities. According to The Dallas Morning News, Dallas collected 6% less in sales tax in March 2026 than it did in March 2025. Fort Worth collected nearly 14% more during the same period, while Irving’s collections increased 36%.
Gracey said city officials should examine the reasons for the differences, including whether Dallas has enough retail activity.
“We’re at a time in our budget where we have to take a serious look at what we’re doing and how we’re serving the citizens of Dallas and making the tough decisions,” Gracey said.
The city’s next fiscal year begins Oct. 1.
City Manager Kim Tolbert is expected to release her proposed budget Aug. 11.
