El Paso County Sheriff’s Office faces projected $5.9 million deficit
UPDATE (2:03 p.m.): The Sheriff’s Office has provided a statement regarding the $5.9 million deficit:
The latest projection presented to Commissioners Court estimates the Sheriff’s Office will end FY2026 with a deficit of approximately $5.9 million. It is important to understand that this remains a projection and will continue to change as actual expenditures are incurred and additional costs are accounted for.
When the initial deficit projections were developed several weeks ago, they were based on assumptions that included little to no additional spending from certain remaining budget accounts through the end of the fiscal year. The reality is that the Sheriff’s Office is a 24/7 public safety operation, and we cannot simply stop spending. We have salaries and benefits to pay, two detention facilities to operate, and ongoing expenses necessary to provide law enforcement and detention services.
The current $5.9 million projection takes into account expenses that are already encumbered and also projects salary and overtime expenses through the end of the fiscal year. Salary projections are based on prior payroll expenditures and the number of remaining pay periods, while overtime projections are based on prior overtime costs and anticipated expenses through September 30. The current analysis estimates approximately $6.97 million in remaining salary and benefit expenses and approximately $864,000 in additional overtime.
However, not every expense we will incur through the end of the fiscal year is currently encumbered. For example, Detention recently saw an approximately $1.2 million increase in contract-service expenses related to pending inmate meal costs, as well as inmate medical and mental health care contract costs for July. The Jail Annex also saw an approximately $863,000 increase in contract-service expenses related to July inmate medical and mental health care costs. Because expenses such as these are not necessarily encumbered in advance, they are reflected as they are paid and can cause actual expenditures, and ultimately the projected deficit, to increase.
The Sheriff’s Office budget has also changed as a result of the transfer of three maintenance divisions to our office. Those transfers account for approximately $1.95 million in costs, including $1.44 million in salaries and related costs and approximately $512,000 in operating expenses.
We continue to closely monitor expenditures and identify areas where costs can be reduced and operations made more efficient. At the same time, expenses such as salaries, inmate meals, medical and mental health care, fuel and other essential operating costs cannot simply be eliminated without affecting our ability to safely operate our detention facilities, provide law enforcement services and protect public safety. As the County’s presentation notes, the year-end projection is based on key assumptions and remains subject to change.
EL PASO, Texas (KVIA) – Monday, the El Paso County Sheriff’s Office will give a presentation detailing its 2026 budget update.
By Sept. 30, the end of fiscal year 2026, the Sheriff’s Office projects a $5,903,861.58 deficit, according to the budget presentation.
The FY2026 adopted budget for the Sheriff’s Office was $136,423,023.
The FY2026 revised budget is $144,147,249.
SO Presentation – 09.21 (1)Download
That puts them at a $7,724,226 increase.
$1,440,791 of this increase is attributable for salaries and related costs due to transfer of three maintenance divisions to EPCSO. $512,366 of this increase is attributable for operating costs due to transfer of three maintenance divisions to EPCSO.Since their last presentation on Sept. 14, that budget has increased by $1,558,674.
As of Sept. 14, 94.42% of the total Sheriff’s Office budget has been spent. 98.54% of salary and benefits budget has been spent.
The target for spending as of Sept. 15, 2026 was 92.31%. Most budget overtimes have been exceeded as of that date.
The Sheriff’s Office expenditure has also increased by $7,137,718 since Sept. 14, according to the presentation.
In early September, the Sheriff’s Office attributed the budget shortfall to overtime spending, increasing fuel and food costs and salaries.
In a previous statement sent to ABC-7, the Sheriff’s Office shared a statement regarding the budget:
“In response to recent reports regarding the Sheriff’s Office projected budget shortfall, I want to provide additional context to our community.
The increasing year-end projection should not be interpreted to mean that our overtime spending is increasing at the same rate. We have been actively working to control and maintain overtime while continuing to operate two detention facilities and provide law enforcement services 24 hours a day, seven days a week.
The projection also changes as necessary operating expenses continue to be processed, including inmate food, medical and hospital expenses, facility operations, utilities, fuel, salaries, and other essential costs of operating the Sheriff’s Office.
I take our responsibility to taxpayers seriously. We are reviewing expenditures, reducing costs wherever we safely can, and working with the Budget Team, County Administration, and Commissioners Court. At the same time, I have consistently raised concerns that our funding, particularly for overtime, does not reflect the actual operational needs of the Sheriff’s Office.
My goal is not to argue over a projection. My goal is to work together to identify the actual costs of safely operating the Sheriff’s Office and develop a realistic and sustainable budget so we do not find ourselves facing the same situation again next year.
We will continue to be transparent, accountable, and focused on providing safe and responsible public safety services to the people of El Paso County.”
In their Sept. 14 meeting, Commissioners discussed requesting Sheriff Ugarte personally attending the Sept. 21 meeting to provide a more detailed explanation of the Sheriff’s Office’s overtime costs.
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