Dallas Furloughs
Dallas Furloughs Most City Workers for Three Days to Address $51 Million Budget Gap
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Key Points
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Dallas had already enacted cost-saving measures prior to the furloughs, including overtime restrictions for non-uniform employees and a halt to non-essential travel, alongside a hiring freeze.
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The city’s self-funded employee health benefits fund is projected to exceed its budget by about $13.8 million due to higher medical and pharmacy claims.
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A June Dallas Observer report cited a $51 million shortfall for the upcoming fiscal year—the largest since COVID-19—driven by a shrinking tax base, stagnant job market, and falling downtown commercial property values, with rising employee medical costs including GLP-1 drugs like Ozempic.
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City officials estimated furloughs would save around $5 million for the city budget.
Dallas is ordering roughly 4,200 city workers to take three unpaid days off this summer to help close a $30 million budget gap, according to Fort Worth Star-Telegram. The mandatory furlough days fall on July 10, September 4, and September 28. Executives at the assistant director level and above must also take two extra unpaid floating days before September 16.
City Manager Kimberly Bizor Tolbert called the move a last resort. "Furloughs are not our preferred solution; however, they enable us to reduce expenses, protect jobs and employee health benefits, and continue delivering services to our residents," she said. The furloughs are expected to save about $5 million — a fraction of a deficit that could reach $51 million by next fiscal year, Dallas Observer has reported.
A Perfect Storm of Rising Costs and Shrinking Revenue
Dallas's budget crisis stems from several problems hitting at once. The city's self-funded employee health plan is projected to run $13.8 million over budget, driven by a surge in medical and pharmacy claims, according to KERA News. A big part of that spike comes from GLP-1 drugs — weight-loss and diabetes medications like Ozempic — which have become far more common and far more expensive.
At the same time, police and fire overtime has blown past its budget by $16.4 million, WFAA reported. Sales tax revenue is also coming in short by $3.8 million, hurt by a stagnant job market and falling downtown commercial property values. Together, these pressures pushed the current-year shortfall to around $30 million and the projected gap for next fiscal year to $51 million — the largest since the COVID-19 pandemic.
Who Gets Furloughed — and Who Does Not
The furloughs apply to most employees paid out of the city's General Fund. Police, fire, EMS, and 911 workers are exempt. So are employees in fee-funded departments like Dallas Water Utilities, Aviation, Convention and Event Services, and Sanitation, according to Fox 4 News. Some IT and Fleet Services staff may also get exemptions for operational reasons.
Workers cannot use vacation or other paid leave to cover the furlough days. The days will be recorded as leave without pay. For lower-wage civilian workers, three days of lost pay is a real hit to household budgets, the Texas Tribune noted. Some workers have also questioned why fee-funded departments escape the burden entirely while General Fund employees bear the full weight.
Council Members Push Back on Surprise Announcement
Not everyone on the Dallas City Council was on board — or even informed ahead of time. Council Member Adam Bazaldua said he was not briefed before the public announcement. "Cutting workers' pay should be the last resort we default to," he said, according to WFAA. He also raised alarms about optics, noting it looks bad to ask voters to approve a billion-dollar bond while the city can't balance its budget.
Council Member Paul Ridley pointed to state law as part of the problem, saying a revenue cap "really hamstrings" the city's ability to raise money, CBS News reported. Council Member Paula Blackmon suggested the city may be "a little bloated on personnel" and called for a deeper staffing review before simply cutting pay. The city had already tried other measures — a hiring freeze and overtime restrictions for non-uniform staff — before turning to furloughs.
Five Million Dollars Won't Fix a Fifty-Million Dollar Problem
The math is stark. The three furlough days save an estimated $5 million. But the projected shortfall for fiscal year 2027 is $51 million, according to the Dallas Observer. That means even with furloughs, the city still faces a gap more than ten times what this plan saves. Deeper cuts — including possible layoffs, program eliminations, or facility closures — could come when the FY27 budget process heats up this fall.
On furlough days, residents can expect delays in non-emergency city services. Libraries, park maintenance, and administrative offices in departments like Planning and Development will feel the impact, the Sacramento Bee reported. City Manager Tolbert said the goal is to protect the city's footing for both the FY27 and FY28 budget cycles — but with a $51 million hole still looming, that path remains steep.
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