Harris County to slow spending growth in Harvey's wake

Commissioners Court is considering slowing the growth of the Harris County, Texas, budget as officials continue to grapple with Hurricane Harvey's widespread destruction and potential impact on property tax revenues.

Since 2014, Harris County has increased spending by an average of 6.2% a year to pay for services such as law enforcement and indigent health care for a rapidly growing populace.

Harris County added nearly 57,000 people from 2015 to 2016, according to the U.S. Census Bureau, second only to Maricopa County in Arizona.

But in a special meeting Tuesday, county budget officials are expected to propose cutting the spending increase by nearly two-thirds with only a 2.4% boost — from $1.46 billion to $1.49 billion — for county departments in the fiscal year that begins March 1.

Harvey-damaged homes and buildings are expected to decrease the amount the county collects from property taxes, which make up 79% of the county's general fund, according to the auditor's office. Property tax revenue will be collected in late 2018.

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Flooded streets of the neighborhood, drowned cars. Houston, Texas, US. Consequences of the Hurricane Harvey

The last time the county increased the budget by 2.4% was in 2012 because of the impact of the Great Recession.

County Budget Officer Bill Jackson said no layoffs are expected, and the only department that will see a spending cut is his. He added that he did not expect residents to see a difference in service levels.

"It's pretty much status quo for a year," he said.

Jackson said a contingency fund and a policy that lets departments save money they do not use at the end of a fiscal year helped offset initial Harvey costs.

"We just need to slow this down," he said.

A Harris County Appraisal District spokesman said Monday that the district is working to appraise property values for 2018, and expects to have numbers in March. HCAD is allowing reappraisals in certain taxing jurisdictions affected by Harvey.

Commissioners Court will finalize the budget Feb. 13.

County officials also are expected to outline more than $180 million in claims submitted to the Federal Emergency Management Agency for repairs to buildings and roads and overtime costs for emergency responders, among other costs. So far, the county has received nearly $65 million in reimbursements.

The $180 million total is expected to grow, Jackson said.

While it waits for FEMA reimbursements, the county also is keeping an eye on Congress to see what, if any, action lawmakers take to fund post-Harvey relief efforts and long-sought infrastructure improvements, including upgrades to dams and bayous.

Whatever action Congress takes will determine how the county shapes a potential bond referendum for flood control projects. Commissioners Court members several months ago voiced support for a bond issue of up to $1 billion to boost flood protections.

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