Days after being censured by Commissioners Court, Harris County Judge Lina Hidalgo used a press conference Thursday to outline the county’s budget challenges and warn about deepening financial strains.
Hidalgo compared the county’s finances to an “overdrafted debit card,” warning that leaders face mounting costs and looming federal funding losses as they prepare to set next year’s budget and tax rate.
Speaking at a 9:30 a.m. press conference, Hidalgo said budget-setting is among her most important duties along with overseeing emergency management and stressed that her approach centers on “fiscal responsibility” and “transparency.”
“In Harris County, we are way past the money we have,” Hidalgo said. “Our debit card is on overdraft.”
She explained that much of the county’s rising expenses are maintenance costs tied to statutory requirements, such as jail staffing mandates when inmate numbers increase. Those obligations, she noted, are often mislabeled as “new investments” in public safety when in fact they are required to meet legal standards.
Compounding the challenge, Hidalgo said Harris Health, the county’s public hospital system, is facing a potential $400 million loss due to federal funding cuts. The system operates Ben Taub Hospital, one of only two Level 1 trauma centers in the region, which treats critically injured patients regardless of their insurance status.
“If you or a loved one ends up in an accident, it is likely you will be taken to Ben Taub,” she said. “That $400 million loss is an enormous percentage of their budget, and there is no way to make that up when we are already overdrafted.”
Hidalgo warned that other federally funded programs across departments — from public health to homeless services to veterans’ assistance — may also be at risk if grants do not come through. She pointed to the Ryan White HIV/AIDS Program, which funds the Thomas Street Clinic in Harris County, as one example where federal cuts could mean loss of care, layoffs and service delays within a few years.
She outlined several cost-saving measures proposed for this year, including selling county property, reducing subsidies for neighborhood constable contract patrols, pausing contributions to the county’s rainy day fund and shifting $20 million in one-time federal funds to cover recurring services. Hidalgo said she supports austerity measures but expects some proposals will not receive majority support because they are politically difficult.
Even with the proposed savings, Hidalgo said the county would still face an estimated $100 million shortfall. She attributed much of that gap to a recent Commissioners Court decision to approve $100 million in law enforcement pay raises against the budget director’s recommendation and without a public vote.
“My plea at the time was to go to the voters,” Hidalgo said. “Let’s not cut $100 million worth of services without asking whether people want those raises or whether they want to keep the services.”
She also criticized additional spending measures, such as a proposed salary increase for elected constables and a recent $5 million allocation for park security, saying they push the county further into the red.
“The people of the county are smarter than that,” Hidalgo said. “We all manage our budgets. We know that money doesn’t grow on trees. If we spend more than we have, we’re going to have to cut somewhere.”
KPRC 2 will livestream the press conference in this article.