City of Dallas proposes $5.66 billion budget with job cuts and service expansions

The City of Dallas released its proposed $5.66 billion budget for the upcoming fiscal year on Friday. The 774‑page plan calls for cutting 296 jobs, saving $17.3 million as the city reorganizes and shifts spending toward key services.

City Manager Kimberly Bizor Tolbert said rising costs, shifting resident expectations, and rapid technological change are forcing Dallas to rethink how it operates.

Despite cuts in other areas, the proposed budget would increase funding for the Dallas Police Department. It includes funding to hire 360 officers in FY 2026-27 and 339 officers in FY 2027-28, bringing the department to a projected total of 3,800 officers.

Other highlights include:

Libraries (72 positions eliminated): 

• Reinvent library services by launching five flagship locations, ensuring every Dallas resident is within a 15-minute drive of a library, and realigning operating hours to better match resources with community demand
• Implement a library model with extended hours and enhanced services at Flagship Libraries and streamlined operating hours at neighborhood branch libraries. Model implementation includes the elimination of 59 positions 
• Eliminate the Adult Learning Program, including eight positions 
• Restructure the Arcadia Park Branch Library operating hours to more effectively serve the surrounding student community, eliminating four positions in FY 2026-27 and six additional in FY 2027-28
• True up data staffing needs citywide and eliminate one Data Coordinator position from the Community Libraries program 

Parks & Recreation (30 positions eliminated)

• Privatize Cedar Crest Golf Course
• End special events funding for aquatics resources
• Adjust litter pickup service

Transportation & Public Works (20 positions eliminated)

• Right-size staffing and realize efficiencies by eliminating nine administrative or vacant positions in FY 2026-27 and one additional position in FY 2027-28 
• Eliminate seven positions from the Urban Forestry program to focus on core departmental services
• Reduce funding for non-bond projects.
• Reduce overtime funding through enhanced oversight and management.
• Maintain and improve 800 lane miles in FY 2026-27 with $142.8 million in funding, an increase from 759 lane miles in FY 2025-26• Advance roadway safety and strengthen Dallas' transportation network by enhancing pavement markings, increasing bridge maintenance, delivering warranted signal projects, and advancing Vision Zero efforts to enhance operational safety on our roadway network by reducing severe crashes and fatalities
• Reduce bike lane funding by $750,000 to reflect revised transportation funding priorities.

Earlier, in a social media video, Tolbert warned employees that a significant budget shortfall would lead to layoffs across multiple departments.

Tolbert delivered the message, telling staff the city has entered a period in which "change is the new normal."

Tolbert said rising costs, shifting resident expectations, and rapid technological change are forcing Dallas to rethink how it operates. She said part of becoming more efficient involves embracing AI, as many private‑sector companies are doing.

She said the city's traditional revenue patterns are no longer keeping pace with spending.

"Why costs are rising faster than revenue?" Tolbert said. "Property taxes and sales taxes are not increasing proportionally. The city relies heavily on those two revenue sources to fund essential services, such as maintenance infrastructure, police services, homeless programs, park and recreation, housing, traffic management."

She said residents have asked for more investment in those services, widening the gap between income and demand and putting pressure on fixed costs such as salaries, pensions, and employee health benefits.

Tolbert also highlighted the speed of technological change.

"Managing rising costs and increased demands force hard decisions and choices. The pace of change isn't slowing. It's at a racecar speed. That means we live in a new environment where we must look at ways to be more efficient and do things differently."

She added that "there are no sacred cows in this process," saying any program or workflow that no longer serves residents well must be reconsidered.

Tolbert acknowledged the human impact of the looming job cuts.

"These decisions are challenging because it's not about positions. It's about people. And I know that behind every line item is a person, it's a family, and it's years of dedication to this organization."

She said the city will treat affected employees "with dignity, compassion, and respect," and that programs are in place to help them transition to new opportunities.

Tolbert will hold employee budget town halls on Aug. 10, where staff can ask questions directly. She closed her message by thanking employees for their service.

"The strength of this organization has never been found in a budget document. It's found inside the people who show up every day to serve Dallas."