As inflation skyrockets, local Texas governments ponder tax rate increases as they balance budgets

Every summer, Jasper County Judge Mark Allen begins to worry about two very different storms brewing: hurricanes and his county budget.

Allen and thousands of other local government officials across Texas entered this year’s budget season facing historic rates of inflation along with severe labor shortages. Complicating the budget process, counties and other taxing bodies say they can’t raise taxes to cover the growing costs of employee salaries and raw materials because their hands are tied by public pressure and recent legislation.

“It’s a situation where local governments are having to start siphoning off their emergency reserves, or just not be able to provide services to people,” said Allen, who has been the East Texas county’s top elected official for more than 15 years. “We’re losing quality personnel to the private sector, where they go out and try to find better-paying jobs and better benefits.”