Liberty County, Texas, has raised its property tax rate for the upcoming 2026-2027 fiscal year, and the reason is simple: the county jail is failing inspections and costing millions to fix. Commissioners approved a new budget on Sept. 25 that pushes the tax rate from 48 cents per $100 of valuation to 54 cents. The increase comes as the jail remains out of compliance with state standards, and a new building is still at least two years away from completion.
Precinct 4 Commissioner Gerald Kolarik told the commissioners court that jail costs are driving the hike. He pointed to indigent health care as one of the biggest drivers, noting that the county spends money housing inmates out of county rather than in its own facilities. “When you start adding up all the things, this budget’s subsequent tax rate is primarily driven by people who don’t obey the law,” Kolarik said.
The new budget also includes a $6 million debt service payment for the existing jail, plus $3.5 million to keep housing inmates out of county. On top of that, the budget shows $7 million set aside for jail repairs and maintenance. The total cost of the budget is not stated in the report, but the individual figures add up to a substantial sum.
The Jail Is Still Out of Compliance
The Texas Commission on Jail Standards issued a notice earlier this month documenting a serious overcrowding problem at the facility. The notice states that 14 inmates were housed in a cell with an approved capacity of 12 inmates for 24 hours. Krish Gundu, with the Texas Jail Project, said this pattern continues to repeat. “Liberty County is only one of two jails that have had these remedial orders that have been extended over and over again,” Gundu said. The repeated extensions mean the county has failed to bring the facility into compliance despite multiple attempts.
The situation is notable because few counties face this kind of sustained failure. A jail that repeatedly fails inspection is a public safety concern, not just a financial one.
The Cost of Housing Inmates Out of County
Kolarik said the money from the tax increase should be used to improve county services like roads and bridges. But he acknowledged that the jail is costing millions. “We have a debt service of about $6 million for our jail coming up,” he said. “And then we have about $3.5 million to continue to house inmates out of county.”
Housing inmates out of county means paying other jurisdictions to hold people who should be held locally. It is expensive, and it removes control over conditions and costs from the county itself. The budget documents show the county is spending significant sums on this arrangement, and the new tax revenue is meant to cover at least part of it.
The $3.5 million line item for out-of-county housing is a direct cost of the jail’s failure. Without a compliant facility, the county has no choice but to send inmates elsewhere.
State Money and the New Jail Timeline
State officials approved $100 million to build a new jail in Liberty County in February. But the project is not expected to be ready for at least two years. That timeline leaves the county facing the current non-compliant facility for the foreseeable future, with the existing jail continuing to require repairs and maintenance.
Gundu said funding for change is needed but argued that prevention is the root of the problem. “If you are going to lock people up, then yes, you have to do it with the minimum standards being maintained. And those are jail minimum standards. Those are floor-level standards. And Liberty County has not been able to meet those floor-level standards for quite some time now,” Gundu said.
She also pointed to the broader drivers of incarceration. “The burden on the county wouldn’t be so much if we were looking at the drivers of that incarceration, the health and social drivers of those incarceration numbers, and asking ourselves, what can we do to prevent this population from ending up in jail?” Gundu said.
Her comments suggest that the jail problem is not just a matter of construction funds. It is also a matter of policy — what happens before people enter the criminal justice system.
What the Tax Increase Pays For
The tax rate increase is designed to fund several ongoing expenses:
- Debt service of about $6 million for the existing jail
- About $3.5 million to continue housing inmates out of county
- $7 million for jail repairs and maintenance
- Additional money for county services like roads and bridges
The budget documents show these figures as separate line items, though the total budget amount is not stated.
The tax increase is meant to address the immediate financial pressure of running a non-compliant jail. Whether it will solve the underlying problems is another question.
The Road Ahead
The county faces a difficult decision: raise taxes to fund a failing system while waiting for a new building that is still years away. The $100 million state approval is a step, but the new jail will not replace the current one anytime soon.
Kolarik’s position is straightforward: the tax increase is necessary to keep the county running. But the longer-term question is whether the county can break the cycle of spending on repairs and out-of-county housing.
Gundu’s framing suggests the answer may lie elsewhere. She points to the social and health drivers of incarceration, arguing that prevention could reduce the burden on the county. That approach would require changes to policy and practice beyond simply building a new jail.
The situation in Liberty County is not unique, but it is unusual in its duration. Few counties face the same repeated failures across so many years.
Key Facts
- Property tax rate increased from 48 cents to 54 cents per $100 valuation
- $6 million in debt service for the existing jail
- $3.5 million to continue housing inmates out of county
- $7 million for jail repairs and maintenance
- $100 million state approval for a new jail, not expected to be ready for at least two years
The county has made the financial move. Whether it can fix the underlying problems remains to be seen. The new tax revenue is designed to keep the county operating, but it does not address the systemic issues that got the jail into this position in the first place.
For now, the county is collecting more money from its residents and hoping the new jail arrives soon enough to replace the one that keeps failing.
Source material: “Liberty County approves property tax rate increase commissioners say will help fund jail,” ABC13 Houston.
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