The Ad Hoc Committee on Pensions moved its meeting to later this month. Dallas officials stated that they are still planning to submit their funding plan for the pension system to a state agency for the next 30 years.
Council Member Tennell Atkins (District 8) expressed commitment to securing the financial stability of the Dallas Police & Fire Pension System and safeguarding pension benefits for all City employees and retirees. statementAtkins mentioned that they are making progress and promised to share more updates soon.
Atkins, who chairs the Ad Hoc Committee on Pensions, mentioned to The Dallas Morning News that they are thinking about reducing the portion of sales tax given to Dallas Area Rapid Transit (DART) by 25%. allocation Atkins stated that it's currently just a discussion.
Atkins noted that this consideration is not a secret and was discussed last month at a Transportation and Infrastructure Committee meeting.
This idea was brought up shortly after the City’s chief financial officer, Jack Ireland, informed the Ad Hoc Committee on Pensions about the current situation. meetingThe Ad Hoc Committee on Pensions is led by Atkins. He discussed the possibility of reducing the sales tax given to DART. The city of Dallas contributes a 1-cent sales tax to DART, which makes up about 75% of the agency’s around $1 billion budget. Jack Ireland updated the Ad Hoc Committee on Pensions about the current condition of the Dallas Police & Fire Pension System.
Atkins asked DART’s president and CEO about the impact of withdrawing a quarter of the sales tax and its effect on the debt. Nadine LeeAtkins emphasized the need to understand the potential restructuring given the current focus on the budget and pension fund.
The cities in DART, including Dallas, relay a 1-cent sales tax, constituting around 75% of the agency’s approximately $1 billion budget. DART currently accounts for about 75% of the agency’s nearly $1 billion budget through the 1-cent sales tax contributed by member cities..
Lee explained to the committee that any change in the amount collected would significantly impact the current operations and services provided by DART. Lee stressed the importance of each dollar collected, stating that any alteration to the collected funds would have a severe impact on current services.The reduction of 25% in sales tax funding, as mentioned, would result in $6 billion less revenue over 20 years.
Lee informed Dallas City Council members that a 25% decrease in sales-tax funding would lead to a $6 billion decrease in revenue over 20 years.
Lee stated that this amount is equivalent to the entire capital budget for bus, light rail, and agency-wide facilities and technology projects for the next 20 years.
Dallas officials are working urgently to address a significant deficit in the police and fire pension, which has been reported to be $1 billion by DMN. They are required to submit a Funding Soundness Restoration Plan, according to state law. Texas Pension Review Board.
Meanwhile, the Dallas Police Department remains understaffed with only about 3,000 officers on duty, despite needing around 4,000 for efficient response times and maintaining public safety. report indicates Dallas requires approximately 4,000 officers to improve police response times and ensure public safety.
“At present, we are dealing with a serious situation, and … we want to ensure that DART has effectively managed the money of our taxpayers,” Atkins informed Lee on April 15. “So, I’m just trying to ensure that you understand, from my position as chairman of the pension fund, that I’m examining everything and looking at revenue. And it would be regrettable if I didn't ask you that difficult question.”
Another member of the Transportation and Infrastructure Committee, Cara Mendelsohn (District 12), concurred that reducing the sales tax contribution to DART should be taken into consideration.
“I believe the concept is very popular among the member cities,” she stated. “But it would also involve encouraging other cities to participate at a reduced rate to maintain or even increase revenue and offer the necessary mobility options for all our residents. As we are frequently reminded, we are a region, not just a city.”
Meanwhile, as The Dallas Express reported last month, Dallas is at risk of losing majority control of the DART board as the City’s population continues to stagnate amid high crime and homelessness, poor service delivery, and rising tax rates.
