Dallas furloughs city employees over $30 million budget shortfall

Dallas will furlough more than 4,200 city employees for three unpaid days this summer and early fall as officials try to close a $30 million budget shortfall. The unpaid days are set for July 10, Sept. 4 and Sept. 28.

The move applies to most General Fund employees, but it does not hit every department. Police officers, firefighters, paramedics and 911 staff are exempt, along with Dallas Water Utilities, Love Field, sanitation, aviation, and convention and event services. Some fleet and information technology employees may also be exempt depending on operational needs.

Why Dallas is doing this

City and news reports tie the shortfall to slower sales tax revenue, higher police and fire overtime costs, and rising employee health-care expenses. Dallas had already responded earlier this spring with a hiring freeze, tighter overtime rules, spending limits and a travel suspension.

Most non-uniform executives at or above the assistant director level will also have to take two additional floating furlough days before Sept. 16.

What comes next

City Manager Kimberly Bizor Tolbert said the furloughs are meant to protect jobs and essential services while Dallas heads into the FY 2026-27 and FY 2027-28 budget process. The city’s planned budget presentation is scheduled for Aug. 11.

For residents, the direct effect is mostly on city workers’ paychecks. For everyone else, the bigger question is whether Dallas will need more cuts, service changes, or revenue adjustments when the next budget gets more specific.

Sources

• KERA News: Dallas will furlough city employees to help address $30 million budget shortfall
• The Texas Tribune: Dallas will furlough 4,200 city employees amid budget gap
• City of Dallas press release: City of Dallas Takes Proactive Steps to Ensure Fiscal Responsibility
• City of Dallas budget briefing: Preliminary Discussion of FY 2026-27 and FY 2027-28 Biennial Budget Development