This is your weekly news roundup, which takes a quick look at some developments in government, politics, education, environment and other topics across El Paso.
Homeowners Face Higher City Property Taxes; Leaders Paint Unclear Picture
The El Paso City Council has introduced the ordinance to levy a tax rate of 75.9 cents per $100 of property valuation, which will result in an increase of about $83 a year on the city’s portion of the tax bill on an average-value home of $221,191.
Under Texas law, governments that don’t reduce tax rates to offset rising property valuations are in essence increasing taxes – and are required to state that in public notices before adopting them.
The city in a news release following the Thursday meeting misrepresented the tax rate it’s proposing – calling it the lowest in history but not stating that the rate will effectively be raised by 7.29% and raise more taxes for operations than last year’s rate. That language is included in the ordinance and will likely be included in the city’s public notice to be posted online and in some local newspapers as required by law.
The city anticipates collecting about $305 million – about $28 million more than the current fiscal year – through local property taxes.
That revenue will help fund the city’s estimated $625.7 million general fund budget for the next fiscal year. The general fund pays for operating costs for basic services including public safety, streets repairs, parks and recreation. The proposed all-funds budget is at about $1.4 billion – about $50 million over the current year. The all funds budget includes the general fund and revenue sources and expenses like rents, fines and forfeitures and franchise fees.
LEARN MORE: How are my property taxes calculated? 7 things to know about the complicated process
The city will hold two public hearings on the tax rate Aug. 12 and Aug. 18 ahead of the vote on whether to adopt the budget and tax rate Aug. 19. The adopted tax rate will be used to calculate 2025 tax bills, which go out in October and must be paid by Jan. 31 to avoid penalties.
UTEP Trims Proposed Budget to Counter Federal Government Cuts
UTEP asked its deans and vice presidents to cut at least 5% from their planned budgets for the upcoming fiscal year because of uncertainties of federal revenue, research grants and indirect costs as well as student enrollment due to financial aid and visas.
The University of Texas at El Paso President’s Office sent its employees a draft of the FY2026 budget this week. It included some of its initiatives and reductions behind the $577 million budget – a 7.2% decrease from the previous year – that goes into effect Sept. 1.
A review of the planned reductions showed that most will come from not filling vacancies for staff, faculty or teaching assistant positions, reducing faculty costs or eliminating administrative positions and restructuring offices. In the case of the Athletics Department, it saved $310,157 by cutting the tennis program.
The university anticipated a $21 million decrease in externally funded research.
“While we assume in our budget projections that there will be reductions in federal research spending over the next year and changes to the calculation of facility and administrative expenses that support research, we are less sure of our projections than we have been in past years,” UTEP stated in the memo.
Among the places the university plans to spend more money are salaries and fringe benefits for some new faculty and staff, relatively minor construction projects and facility repairs, tuition support for doctoral student employees, and, in a few cases, raises for the retention of key staff. The Office of the Provost dedicated $100,000 for faculty visa costs.
The university expects its student enrollment to increase by 1.5%, or about 375 students, in the fall with smaller increases in the spring and summer sessions. UTEP’s first day of class is Aug. 25, and Census Day – the final count of registered students – is Sept. 10.
El Paso Unemployment Rate, Wages Ticked Up in June
The number of El Pasoans holding jobs declined slightly in June as the unemployment rate in the metro area increased to 4.3% compared with a statewide unemployment rate of 4.1%, according to figures released Wednesday by the U.S. Bureau of Labor Statistics.
But average hourly private sector wages in El Paso reached an all-time high of $24.48 in June, an increase of 7.7% from the same month in 2024, according to separate data by the BLS. The wage gains since last year outpaced nationwide inflation, which lifted average prices by about 2.7% since June 2024.
While the data show average hourly wages in El Paso at their highest, private sector earnings throughout Texas were about $10 higher – $34.48 on average last month, down slightly from earlier this year.
Despite the small decline in employment statistics last month, joblessness in El Paso is largely in line with historical norms. Since 2022, the annual unemployment rate in El Paso on average has hovered around 4.2% to 4.3%.
There were just over 403,000 people employed in El Paso in June, and slightly less than 18,000 jobless adults, according to the BLS figures. And more Texans had jobs as of last month than ever before, when statewide employment topped 15.2 million for the first time.
The post El Paso homeowners face city property tax hike; UTEP trims budget over federal cuts; unemployment rate increases appeared first on El Paso Matters.
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