The State of Texas is experiencing record surpluses in revenue, partly due to significant sales tax revenue generated by Irving and other metropolitan areas. Unlike many states, Texas provides minimal financial support to its cities. Instead, city operations are primarily funded through local property taxes, sales taxes, and fees.
For the current fiscal year (October 1, 2023 - September 30, 2024), the city of Irving estimates $896.6 million in sales tax revenue. Of this amount, $679.2 million will go to the state, while $108.7 million is expected to be available for the Irving budget. An equal amount will be allocated to the Dallas Area Rapid Transit (DART) system.
Despite the growing sales tax revenue, state legislation has imposed additional financial obligations on the city, such as requiring Irving to remit a portion of fees collected in municipal court and capping charges for certain inspection programs.
While the state funds the construction and maintenance of state highways, cities like Irving are required to cover costs related to right-of-way acquisition and drainage improvements. For instance, the city's share of these costs for the State Highway 183 project in Irving was $40 million.
A considerable portion of Irving's economic activity contributes to the state's budget, which is experiencing record revenue increases. However, the state does not use this revenue to fund services for Irving taxpayers, especially for state-initiated projects.
