Large cities and municipalities across the state are working to finalize their next budgets, and most of them are facing significant budget deficits. The go-to solution to that problem for years has been property tax increases, which have limited the effectiveness of state-level attempts to cut property taxes.
According to a recent report from the Texas Tribune, the San Antonio budget deficit is $158 million over two years, while Austin faces a deficit that could be as high as $100 million by 2030. Dallas is only marginally better, with a gap of $51 million. Even in the much smaller city of Fort Worth, officials are facing a deficit of just under $100 million.
According to economist Dr. Vance Ginn, the issue isn’t a lack of income; it’s too much spending. He says these municipalities have strayed too far from their statutory responsibilities and explained that: “If you need to spend on certain items, then you need to cut back on other areas. I think that’s really what we need more of by the state, local, and even federal governments.”
Unfortunately, municipal governments, especially in big blue cities, have been unwilling to cut back on their spending, but Ginn had a suggestion for how the state could force them to at least slow down. “Government [spending] should grow no faster than population growth, plus inflation,” he suggested.
He thinks mandating that could help push back on the natural government desire to always spend more and crowd out the private sector.