As inflation skyrockets, local Texas governments ponder tax rate increases as they balance budgets

New home construction in north Longview's Hidden Hills subdivision on Dec. 17, 2021. Rising property values typically mean more revenue for local governments. However, many are weighing whether to capture that additional revenue or cut rates to ease the burden on taxpayers. (Credit: Michael Cavazos for The Texas Tribune)

JASPER — Every summer, Jasper County Judge Mark Allen begins to worry about two very different storms brewing: hurricanes and his county budget.

Allen and thousands of other local government officials across Texas entered this year’s budget season facing historic rates of inflation along with severe labor shortages. Complicating the budget process, counties and other taxing bodies say they can’t raise taxes to cover the growing costs of employee salaries and raw materials because their hands are tied by public pressure and recent legislation.