How large is the budget shortfall?

The city projects a $36.5 million gap in the upcoming budget that must be addressed through cuts, consolidations and reprioritization.

Which departments are facing the biggest changes?

Parks and Recreation and the public library system are named for targeted reductions. Multiple departments, including the Office of Community Care, are scheduled for consolidation to save money.

Will libraries actually close?

The draft allows for up to four library branch closures under a regional plan. Specific closures will depend on final budget decisions and further analysis of service models and alternatives.

How many city jobs are at risk?

The draft budget includes the elimination of 100 filled positions as part of workforce reductions across the city.

The draft proposes a modest decrease in the property tax rate, lowering it from 70.47 to 69.97 cents per $100 of assessed value, marking the tenth consecutive annual decline in the rate.

What are the major investments in the plan?

Major proposed investments include increased funding for public safety and $162 million allocated to street and infrastructure improvements.

August 19, 2025

Dallas Faces $36.5 Million Budget Shortfall Amid Proposed Cuts

Dallas, August 19, 2025

News Summary

Dallas city leaders are confronting a projected $36.5 million budget shortfall for the upcoming fiscal year. Proposed cuts span parks, libraries, and personnel, while the budget emphasizes increased funding for public safety and substantial investments in street repairs. This draft budget includes a 2% reduction in park funding, the potential closure of library branches, and aims to align spending with core city priorities as revenue drops due to reduced property tax collections.

Dallas city leaders are facing a projected $36.5 million budget shortfall for the coming fiscal year and have proposed cuts across parks, libraries and personnel while increasing investments in public safety and street repairs. The draft plan seeks to close the gap through targeted reductions, departmental consolidations and a continued, modest decrease in the property tax rate.

Key actions in the draft budget

The draft budget proposes a roughly 2% reduction in funding for the Park and Recreation Department, equal to about $3 million. Potential changes under consideration include decommissioning some aging community pools, reducing hours at recreation centers and eliminating positions within the department. Overall workforce reductions are also part of the plan, with 100 filled city positions slated for elimination in the draft.

At the same time, the city plans to increase spending on public safety, adding investments in police and fire services and pursuing hiring of new police officers as a priority. The draft also proposes $162 million in street improvements, reflecting resident feedback that road repair is a top concern.

Libraries and service consolidation

The city’s public library system is under review as part of a regional plan that could result in the closure of up to four branches. One branch that faces potential closure is the Skillman Southwestern Branch, which was previously spared in the prior budget cycle. The Library Director has recommended consolidating services to extend hours and reduce operating costs, and has proposed alternatives such as pop-up library services and book vending machines to maintain access where full branch operations are reduced.

Why the shortfall occurred

The city attributes the revenue gap largely to reduced property tax collections following successful legal challenges to property assessments. Those outcomes have trimmed revenue projections and prompted a move away from incremental budgeting toward a priority-based budgeting model intended to align spending with defined city priorities and core services.

Tax rate and departmental changes

The draft includes a small reduction in the property tax rate from 70.47 cents to 69.97 cents per $100 of assessed value, marking the tenth consecutive year of a lower rate.
Several departments, including the Office of Community Care and other municipal units, are set to be consolidated to achieve operational savings and streamline service delivery.
The city is also planning investments in municipal technology, including the use of artificial intelligence to improve operations.

Impact on community facilities

Community pools are among the facilities most affected by the proposed parks cuts. Attendance at city pools has been declining for years, tied to reduced hours, aging pool infrastructure and the growth of nearby private pools in new apartment developments. The city’s community pool stock is notably old, with the newest community pool built in 1975 and the oldest dating back to 1947. Reduced attendance numbers are part of the rationale cited for potentially decommissioning some legacy pools.

Equity and program priorities

Budget planners have highlighted the need to balance core services, infrastructure, and public safety while addressing equity concerns. Previously launched initiatives related to diversity, equity and inclusion have been paused in response to federal compliance reviews, and advocates have raised concerns about how consolidation and cuts might affect equitable access to services across neighborhoods.

Next steps and public process

The proposal is a draft subject to revision through the city’s budget process. Officials plan to use community feedback and departmental reviews to refine allocations before a final budget is adopted. The priority-based approach will be used to evaluate which services remain core, which can be modified, and which may be reduced or eliminated to bridge the funding gap.

Background context

Dallas has sought to keep property tax rates gradually declining for several years while responding to shifting revenue patterns and rising costs in some service areas. The current draft reflects those long-term goals alongside near-term constraints created by lower-than-expected property tax revenue. Investments such as the large street improvement package aim to address immediate resident concerns while other proposals attempt to preserve essential public safety services.

Frequently asked questions

How large is the budget shortfall?: The city projects a $36.5 million gap in the upcoming budget that must be addressed through cuts, consolidations and reprioritization.
Which departments are facing the biggest changes?: Parks and Recreation and the public library system are named for targeted reductions. Multiple departments, including the Office of Community Care, are scheduled for consolidation to save money.
Will libraries actually close?: The draft allows for up to four library branch closures under a regional plan. Specific closures will depend on final budget decisions and further analysis of service models and alternatives.
How many city jobs are at risk?: The draft budget includes the elimination of 100 filled positions as part of workforce reductions across the city.
Are taxes going up?: The draft proposes a modest decrease in the property tax rate, lowering it from 70.47 to 69.97 cents per $100 of assessed value, marking the tenth consecutive annual decline in the rate.
What are the major investments in the plan?: Major proposed investments include increased funding for public safety and $162 million allocated to street and infrastructure improvements.

Key budget features (visual overview)
Feature	Value	Visual
Projected shortfall	$36.5 million
Parks funding reduction	~$3 million (2%)
Positions proposed eliminated	100 filled positions
Street improvements	$162 million

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Additional Resources

Author: STAFF HERE DALLAS WRITER

DALLAS STAFF WRITER The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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