Harris County approves historic property tax increase amid budget shortfall

Photo credit: Chron

HOUSTON — Harris County commissioners approved a historic property tax increase Thursday as the county adopted a $3.1 billion budget amid a more than $180 million shortfall.

Commissioners Rodney Ellis, Lesley Briones and Adrian Garcia voted for a combined tax rate of about 67 cents per $100 of taxable value. Commissioner Tom Ramsey, the court’s lone Republican, voted against the increase.

The rate covers four taxing entities: Harris County, the Harris County Flood Control District, Harris Health System and the Port of Houston Authority.

County officials said the higher rate will increase the average homeowner’s annual tax bill. Budget officials estimated an increase of about $188 for a $400,000 homestead and $142 for a $300,000 home.

The commissioners also approved the fiscal year 2027 budget in a 3-2 vote, with Ramsey and Harris County Judge Lina Hidalgo voting against it. Hidalgo was absent from the room during the tax-rate vote after briefly leaving the meeting, although she had opposed the increase during an earlier vote.

The budget process centered on a deficit exceeding $180 million, marking the county’s fifth consecutive annual shortfall.

Supporters cite rising costs

Ellis, Briones and Garcia defended the tax increase after the vote and pointed to rising costs for health care, court-appointed attorneys, law enforcement salaries and other expenses.

Supporters also cited costs they said resulted from state and federal policy decisions.

Ellis said federal cuts to the Affordable Care Act and programs addressing domestic violence would create additional financial pressure on the county.

Garcia argued that federal Medicaid cuts, Texas’ decision not to expand Medicaid and a new state business tax break have shifted additional costs onto local taxpayers. He cited $179 million in additional indigent-care costs reported from Harris Health.

Briones said the higher revenue would help maintain public safety, infrastructure, flood protection and health care services.

“This budget reflects what I’ve heard from Harris County residents: protecting critical services is nonnegotiable,” Briones said.

Critics blame county spending

Ramsey opposed the tax increase and argued that county spending, rather than state or federal policies, created the need for higher taxes.

“It is not the time to do this to the folks that live in Harris County,” Ramsey said. “Our number one issue over the last six months has been affordability. This certainly is going to have a tremendous impact on the residents’ ability to afford their homes.”

Hidalgo also opposed the tax increase and later criticized commissioners over $400,000 that she said remained unallocated in the budget. She connected the money to a program serving children exposed to domestic violence.

The county budget also adds hundreds of general-fund positions and relies on one-time revenue sources, including property sales. Budget officials said the county could consider layoffs next year if financial pressures continue.

The new fiscal year begins Oct. 1.

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