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No tax raise planned in face of budget crunch, Bexar County Manager says

Sakai says cuts have to happen as revenues continue to fall

SAN ANTONIO – Bexar County is facing a budget crunch, but its top staffer said he doesn’t plan to try to squeeze more out of your property tax bill.

“I can tell you it’s not my intention to propose a budget that has a property tax rate increase,” Bexar County Manager David Smith said. “Hasn’t happened in 30 years. I don’t want to be the first to do it.”

Smith’s comments were made after a State of the County event hosted by Metro SA Chamber.

“It will be, in my experience...the most fiscally challenging budget process we’ve had since the housing crash of 2008,” Smith said.

The county relies heavily on property tax revenue, which he said he expects to decrease this year.

Though the county has reserves to fall back on, for now, staff are still projecting a $145 million deficit in Fiscal Year 2028-2029.

Slide from an Apr. 28, 2026 presentation to Bexar County Commissioners (Bexar County)

The county also has until the end of December to spend the last of its American Rescue Plan Act (ARPA) funds, though a county dashboard shows all $389 million has already been spent.

Discussions ‘ongoing’ about what to cut, Sakai says ahead of final budget process

Bexar County Judge Peter Sakai is on his way out after a single term following a loss to former San Antonio Mayor Ron Nirenberg in the Democratic Primary.

Before he leaves at the end of the year, it will be up to Sakai and the four other county commissioners to close the projected gap, as well as decide if any ARPA-funded programs can be bankrolled another way.

What could be put on the chopping block “are going to be ongoing discussions,” Sakai said, noting some programs might not keep going.

KSAT asked if that meant he anticipated cuts to services. Sakai’s response: “We have to.”

“That’s good government,” Sakai said. “We have to balance our budgets, and so we will ask that all these positions that get — especially those got created by the federal funding, ARPA money — will have to come back, and we’ll have to see what the return of investment is on those particular positions and those allocations."

Sakai said there weren’t any specific cuts on the top of mind, however.

“We just have to remember we can’t compromise public safety. We can’t come compromise on just basic needs,” Sakai said. “Food security, housing issues, workforce development, economic development — all those issues have to take top priority."

The City of San Antonio is facing its own looming shortfall. Unlike the county, though, it is considering a mix of both cuts and a bump in the property tax rate.

Both the county and city’s fiscal years run from October 1 through September 30.


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