Dallas city officials estimate that maintaining a hiring freeze on hundreds of vacant positions could save approximately $32 million as leaders prepare the city’s budget for the 2027 fiscal year.

According to a memo released Friday by Chief Financial Officer Jack Ireland, Dallas had 705 vacant nonseasonal positions funded through the general fund as of May 6. The projected savings assume those positions remain unfilled throughout the fiscal year running from October 2026 to September 2027.

The vacancies are tied to a hiring freeze announced in April by City Manager Kimberly Bizor Tolbert, aimed at addressing mounting financial pressures facing the city.

No Decision Yet on Extending Hiring Freeze

Ireland’s memo does not recommend whether the hiring freeze should continue beyond its current scope. The document notes that some positions may eventually be exempted from the freeze and filled based on operational needs.

City leaders are entering budget discussions amid concerns over increasing personnel expenses and uncertainty surrounding future revenue growth.

In April, city officials projected several financial challenges, including a $16.4 million spending overrun, a $3.8 million revenue shortfall and a $13.8 million deficit in the employee health benefits fund. Those concerns prompted the hiring freeze for most nonuniform positions supported by the general fund.

Property Tax Growth Expected to Slow After Adjustments

The memo also provides an early indication of revenue expectations for the upcoming budget cycle.

Preliminary property appraisal values are currently about 13% higher than last year’s certified figures. However, city staff anticipate that property owner protests and valuation adjustments will significantly reduce the final increase, with overall growth expected to settle near 5%.

City Exploring Funding for Viaduct Connector Project

In a separate memo issued Friday, city officials outlined efforts to secure funding for a planned connection between the Jefferson and Houston viaducts near downtown Dallas.

The project has drawn attention from residents concerned about potential traffic disruptions related to the ongoing expansion of the city’s convention center.

Officials said they are evaluating strategies to minimize construction-related traffic impacts and plan to provide the Dallas City Council with a more detailed update on June 5.

Budget Challenges Continue as Planning Moves Forward

As Dallas begins crafting its next budget, city leaders are balancing cost-cutting measures with infrastructure priorities and rising operational expenses. The potential savings from unfilled positions could provide budget flexibility, while major projects such as the Jefferson-Houston viaduct connection remain under review.