Dallas financial outlook drops
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Dallas' financial outlook has been downgraded from stable to negative after voters narrowly approved a proposition that will require the city to hire hundreds more police officers and dramatically increase public safety spending.
Why it matters: The negative financial outlook is the first direct impact of this month's election.
- The city will have limited financial flexibility after the adoption of a City Charter amendment that requires the city to add 900 police officers and dedicate 50% of new revenue to public safety pensions, per credit ratings agency Moody's.
Driving the news: The City Council is scheduled to meet today to certify the election's results.
- Dallas voters approved 16 charter amendments, including community-led propositions that effectively decriminalize marijuana, allow residents to sue government officials and require Dallas to employ at least 4,000 officers.
Friction point: Past and present city leaders spoke out against three propositions that were added to the ballot by petition. City staff has warned that the amendments would likely lead to cuts to parks, libraries and other areas.
- Propositions S, T and U were backed by Dallas HERO, a group led by a wealthy Park Cities resident. T, which would've required a citywide quality of life survey tied to the city manager's employment, was rejected.
State of play: The revised financial outlook is not a credit rating downgrade but a prediction of how the city's credit will evolve over the next two years.
- Moody's predicts the city will have to reduce budget expenditures in non-public-safety departments to offset the cost of additional salaries and pension investments.
Catch up fast: The Dallas Police Department has hired 250 new officers this year, exceeding its goal. The department, like many nationwide, has struggled with recruitment and retention.
- The city has long been unable to meet a goal set in the 1980s to employ three officers per every 1,000 residents.
- The City Council voted last week to repeal that language from the 1988 ordinance.