Bexar 'had no concept' finances deficit was coming, county supervisor says

Bexar County Decide Peter Sakai, proper, leads a panel at his State of the County handle on the Grand Hyatt on Tuesday afternoon. Credit score: Michael Karlis

Bexar County Supervisor David Smith stated Wednesday that it was practically unattainable for Commissioners Courtroom to foresee the county’s looming $145 million finances deficit.

“We actually had no concept,” Smith advised the Present. “ We’re not the one ones scrambling.”

Smith’s feedback got here after outgoing Bexar County Decide Peter Sakai’s last State of the County handle on the Grand Hyatt downtown on Wednesday morning.

Sakai’s speech, and a subsequent panel over which he presided, was largely dedicated to discussing the decide’s accomplishments throughout the previous yr. Nonetheless, Smith supplied a frank evaluation for the viewers of Bexar County’s looming finances disaster.

“It will likely be, in my expertise, essentially the most fiscally difficult finances course of we’ve had for the reason that housing crash of 2008,” Smith stated throughout the dialogue.

Certainly, Bexar County — in addition to each different Texas county — is, by legislation, closely depending on property taxes to generate income. About 75 cents of each greenback in Bexar County’s working finances comes from that supply, Smith stated.

Declining dwelling values, a results of increased mortgage charges, have taken a chunk of Bexar’s property tax revenues, Smith defined. In the meantime, an uptick in homesteading amongst retirees has additionally damage the county’s backside line.

Past that, the Texas Legislature’s determination to increase property tax exemptions for the primary $125,000 for small enterprise homeowners, and the sundown of the COVID-era American Rescue Plan Act (ARPA) funding, which ends in December, are additionally inflicting vital monetary stress for Bexar County.

Certainly, these insurance policies led Smith to challenge a 2% decline in property tax income — or a $145 million deficit — by 2029.

“We’re reacting to it sooner than most, and I can let you know it’s not my intention to suggest a finances that has a property tax improve,” Smith advised the Present. “It hasn’t occurred in 30 years, and I don’t wish to be the primary to do it. So, we shall be on the forefront of dealing wth that situation as nicely.”

Whereas Smith maintains a property tax hike isn’t within the playing cards, Sakai advised reporters he opposes slicing very important county companies.

“We will’t compromise public security, we will’t compromise on primary wants,” Sakai stated. “Meals safety, housing points, workforce improvement, financial improvement — all these points need to take high precedence.”

Even so, what falls below the finances ax will largely be as much as the incoming Bexar County decide.

Voters will resolve in November whether or not Democrat Ron Nirenberg, the previous mayor of San Antonio, or Republican tradition conflict crusader Patrick Von Dohlen will lead the county by way of its worst finances cycle for the reason that Nice Recession.

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