TRACKING THE TAX RATE DEBATE
Following weeks of disagree- ment, the final no-show by Republican Commissioners Tom Ramsey and Jack Cagle on Oct. 25 marked the end of a standoff with the three Democratic members of Commissioners Court.
OCT. 4
AUG. 23
SEPT. 6
SEPT. 13
SEPT. 27
Cagle proposes a plan to generate $149 million in revenue more than the no-new-revenue rate.
Budget director Daniel Ramos proposes a budget for fiscal year 2022-23 of $2.24 billion.
Commissioners take a preliminary 3-2 vote to propose tax rates, with Ramsey and Cagle opposed.
General fund, flood control budgets adopted with no-new- revenue rate; Cagle and Ramsey absent
Commissioners vote 3-0 to adopt the Harris Health System budget; Ramsey and Cagle are absent a second time.
SOURCE: HARRIS COUNTY OFFICE OF COUNTY ADMINISTRATION/COMMUNITY IMPACT
HARRIS COUNTY BUDGETS, COMPARED Harris County’s general fund, the Harris County Flood Control District and Harris Health System all missed out on additional funding after Republicans broke quorum and prevented the Democratic majority from adopting budgets based on proposed tax rates.
million for 200 deputy positions. None of these proposals came to fruition. While the eight constable precincts, district attorney’s office and sheriff’s office’s patrol will have $28.7 million more than the previous full fiscal year, they missed out on $30.15 million in additional revenue. Daniel Ramos, executive direc- tor of the Office of Management and Budget, said all county departments are paying around 10% more in costs due to inflation and increases in the cost of health care, thus impacting their ability to maintain the same level of service as they have in 2022. “What we’re seeing across all depart- ments is that departments will have less flexibility,” Ramos told Community Impact . “Under the no-new-revenue budget, we’ve eliminated planned investments, such as the 35 investiga- tors for the sheriff to reduce caseloads for violent crimes.” Cagle said in August he believed there would need to be a compelling reason to raise taxes, adding that if taxpayers have had to tighten their belts, the government should as well. Jason Spencer, spokesperson for the sheriff’s office, took a different view. The sheriff’s office patrol lost out on $16.68 million—the equivalent of 175 entry-level deputies. “I don’t think there was an expec- tation that among our general pub- lic, that there would be a cut to law enforcement that we’ve seen with this budget,” Spencer said. Hospital, flood control districts Throughout the tax rate standoff, medical professionals, Harris Health System representatives and members of the public showed support for the hospital district’s proposed tax rate. On Sept. 6, Dr. Esmaeil Porsa, Har- ris Health’s president and CEO, spoke virtually to warn of the impacts of a no-new-revenue rate on the district. “This is really shameful: We are 3,000 colonoscopies behind. We still have sewer water backing up to our pharmacy at our hospitals,” Porsa said. He said Sept. 13 the hospital dis- trict’s tax rate had been cut twice over the last three years. The district’s rate was $0.162 per $100 valuation in the
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Flood Control District, the Port of Houston Authority and the hospi- tal district—Harris Health System. Even after Cagle and Precinct 2 Com- missioner Adrian Garcia zeroed in on the same tax rate for the county’s gen- eral fund in their last-minute efforts to reach a deal, Ramsey and Cagle’s seats were empty Oct. 25 for the final oppor- tunity to adopt proposed rates that were 1% lower overall than the previ- ous year’s, according to the Office of Management and Budget. As a result, the county reverted to the no-new-revenue rates, under which property tax revenue is capped to the same amount as the previous year plus revenue from new construc- tion minus any increases in debt. The difference between the pro- posed and adopted rates amounts to $94.2 million, $23.4 million and $135.7 million less in maintenance and opera- tions revenue for the county’s general fund, the flood control district and Harris Health System, respectively, according to the budget office. “Just remember when your flood-control project is downsized [and] when your hospital wait times get longer, you know who to thank,” County Judge Lina Hidalgo said Oct. 25. Ramsey and Cagle said in Oct. 25 statements they were proud to save county taxpayers collectively around $250 million in taxes. “We can return to a fiscally sound system of providing the basic services that taxpayers expect—public safety, flood protection, parks and constituent services,” Cagle said in a statement. But with Cagle defeated by Demo- crat Lesley Briones in the Nov. 8 elec- tion, only Ramsey will be left to debate tax rates with Democrats in 2023. Law enforcement funding Several commissioners proposed more funding for law enforcement during the six-week-long standoff. Ramsey asked for $20 million for 200 patrol officers; Cagle suggested $56 million for 200 new officers and salary increases for current officers; and Gar- cia proposed an additional 2.5% pay increase for law enforcement and $20
Estimated maintenance & operations revenue, scal year 2022-23
Revenue under adopted rate
Revenue under proposed rate
Harris County general fund*
$94.2M Difference
$1.8099B $1.7157B
Harris Health System
$135.7M Difference
$957.8M $822.1M
+$45M in American Rescue Plan Act funding approved 5-0 at Nov. 15 Commissioners Court meeting could be additional revenue for Harris Health System.
Harris County Flood Control District
$23.4M Difference
$137.4M
$114M
$3B
0
$100M
$200M
$1B
$2B
*THE GENERAL FUND INCLUDES REVENUE FOR MULTIPLE DEPARTMENTS, INCLUDING THE SHERIFF'S OFFICE, DISTRICT ATTORNEY'S OFFICE AND CONSTABLES' OFFICES. SOURCE: HARRIS COUNTY OFFICE OF MANAGEMENT AND BUDGET/COMMUNITY IMPACT
TAX RATE AND BALANCE OF POWER, 2007-2023 The overall tax rate paid by Harris County residents stayed flat from fiscal year 2007-08 through FY 2018-19 during a period of a 4-1 Republican majority. Once Democrats took control following the 2018 midterms, they proposed raising the tax rate to $0.6526 per $100 valuation, but Cagle and then- Precinct 3 Commissioner Steve Radack prevented the increase. The tax rate has been reduced each year since. Democrats will have a 4-1 majority in 2023.
Tax rate
Proposed tax rate
2007-08 to 2018-19
2019-20 to 2022-23
Party in power
4-1 REPUBLICAN
3-2 DEMOCRAT
$0.75
$0.70
$0.629980
$0.65
$0.572510
$0.60
$0.55
$0.50
$0.530580
0
2007-08
2010-11
2013-14
2016-17
2019-20 2022-23
SOURCES: HARRIS COUNTY OFFICE OF MANAGEMENT AND BUDGET, HARRIS COUNTY OFFICE OF COUNTY ADMINISTRATION/COMMUNITY IMPACT
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