El Paso County Faces Growing Budget Challenges
El Paso County is facing a significant financial challenge as it prepares for the 2025 budget cycle. Officials have projected a deficit of between $55 million and $62 million, a sharp increase from the $20 million to $25 million shortfall that was anticipated just a few months ago. This growing gap has raised concerns among local leaders about how the county will manage its operations and maintain essential services.
County Judge Ricardo Samaniego has voiced his worries about the situation, stating that the new way of living will be one where government is not able to do as much as it once did. He emphasized that the county is under pressure due to declining revenues, with spending for 2025 expected to drop by $10 million compared to the previous year.
County Commissioner David Stout has echoed these concerns, highlighting the need to find new ways to boost revenue. “We have to increase our revenue somehow,” he said. While property tax bills are expected to remain unchanged in 2025, Stout warned that potential increases or cuts to services could be on the horizon.
A major contributor to the deficit is a loss of $28 million in funding from federal inmates housed in the county jail. This loss has had a significant impact on the county’s finances. Additionally, Stout pointed out that unfunded mandates from Austin account for 65 percent of the county’s spending, with no state assistance provided to offset these costs.
In response to the financial strain, the county has directed all departments to reduce spending by 5 percent while avoiding layoffs. However, Stout cautioned that further cuts may be necessary, which could affect essential services. “Less building, roads and bridges. Less access to services like water and wastewater. Less sheriff patrols potentially because those are not mandated services,” he said.
The recent state legislative session has also added to the challenges. Increased tax exemptions and other mandates mean that the community will need to play a larger role in supporting local services as the county reduces its involvement. Samaniego urged residents to take an active part in this effort, saying, “Ask not what your county can do for you, ask what you can do for your county.”
The county’s financial strategy now hinges on the upcoming July 25 report on property values. This report will determine how much revenue can be raised and what further cuts may be necessary. The outcome of this report will be critical in shaping the county’s budget for the coming year.
As the county navigates these financial challenges, officials are looking for innovative solutions to balance the budget while maintaining essential services. The path forward will require collaboration between local government, residents, and businesses to ensure that the community continues to thrive despite the economic pressures.
