HOUSTON, Texas (KTRK) — If you’re worried about paying a new City of Houston trash fee, Harris County Judge Lina Hidalgo said just wait until what could be coming due to their deficit.

Harris County prepares for its first-ever $3 billion budget

Right now, Houston City Council is going through its budget process. Leaders will vote on a new budget next month.

The proposal includes a $5 monthly trash fee. On Thursday, Judge Hidalgo warned that increases could also be coming from the county.

“The fact of the matter is just as you hear the trash fee, the trash fee, the trash fee, you’re going to be hearing about Harris County fees, cuts, others soon enough,” Hidalgo said.

Commissioners won’t approve a budget until September, but they got a preview of how the finances look this week. They found out from Budget Director Daniel Ramos that expenses could top $3 billion for the first time.

As for the deficit, Ramos said the worst-case scenario is that it’s $257 million. The best-case scenario, he said, is that the county faces a deficit of about $130 million.

“This is the lowest possible deficit,” Hidalgo explained. “That would mean that we set the tax rate basically as high as we can set it within the state constraints, and I don’t know if my colleagues will do that in an election year.”

The county has been here before. Last year, the budget director said the county faced a $200 million deficit.

To close the gap, commissioners chose to cut non-law-enforcement budgets, find efficiencies, and implement a hiring freeze.

Here’s what’s driving the deficit

A document presented to commissioners outlines the causes of rising expenses. The report shows that the main reason is that higher pay for law enforcement was approved last year.

The document shows that increased law enforcement pay will add $73 million. Health benefits and higher pay for other departments will add nearly $70 million more.

Also, if they restore hiring, it will add $25 million more to the budget, according to the document. Ramos said inflation is impacting them as well.

Next year, the county expects the cost of repairing its vehicles to be $6 million higher. Also, higher gas prices the county anticipates will add another $5 million to the budget. Overall, Ramos said inflation will add $20 million to the budget.

Will it be fees or efficiencies to close the gap?

To close the gap, Hidalgo warned they’ll need to increase fees, cut services, and increase taxes as high as they can.

“$129 million is not the type of money you find shaking the couch cushions,” Hidalgo explained. “It’s roughly equal to one month’s rent for 95,000 residents.”

Not everyone agrees. Commissioner Tom Ramsey believes there’s time to figure it out without impacting neighbors’ wallets.

“I don’t think we’re going to get to the answer by raising fees or raising assessments,” Ramsey said. “I do think there are efficiencies.”

It’ll take a while to see what direction the county goes. Ramos said he’ll present a budget proposal in August.

Commissioners will make a final decision in September.

This story comes from our news partner ABC13 Houston.