MCLENNAN COUNTY, Texas (KXXV) — The City of Waco has reduced funding for local non-profits by 20% as city leaders navigate tightening revenues and a $30 million reduction to the municipal budget over the past two years.
- The Central Texas Hispanic Chamber of Commerce lost $35,000 in city funding, forcing the organization to reduce intern hires, pause some programs, and share services with other non-profits.
- Historic Waco is also losing city funds, which, combined with a decrease in memberships and donations, has resulted in staff cuts.
- To help offset the cuts, the city created a $1 million project reserve fund that non-profits can apply for, though city officials warn further budget reductions are possible next year.
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The City of Waco has reduced funding for local non-profits by 20% as city leaders navigate tightening revenues and a $30 million reduction to the municipal budget over the past two years. The cuts are forcing organizations to make significant adjustments to their services and staffing.
The Central Texas Hispanic Chamber of Commerce received $175,000 from the city in 2025. In 2026, the organization is receiving $140,000. Overall, the chamber's budget dropped from $300,000 in 2025 to $265,000 this year.
"Yeah that’s about $35,000 for us," Mito Diaz- Espinoza, President of the CenTex Hispanic Chamber of Commerce said. "So we start looking at what do we have to minimize, what does the programming look like, how do we still manage the high level of contact and support that we have for our businesses."
To manage the shortfall, the Hispanic Chamber is reducing its intern hires from two to one and placing some programs they have been working towards on hold, like health benefits, and retirement benefits. They have also begun working with other non-profits to share services and save money.
"All of us knew what was going on, so we’ve all shared services, what are we doing independently that we can do together to make sure that we are not duplicating services and save some of those costs," Diaz-Espinoza said.
Historic Waco is also losing city funds. The organization has seen a decrease in memberships and donations across the board, resulting in staff cuts.
Waco Chief Financial Officer Blu Kostelich said the city analyzed its general fund and needed to make cuts. Non-profits are competing for general funds against police and fire departments, street maintenance, and infrastructure.
"We are being squeezed with tightening revenues, we have to also tighten our expenses," Kostelich said.
Kostelich said the city is utilizing other sources, like the Hotel Occupancy Tax, to make up for reductions.
"As we go through this process understand that our budget is tight and we’re going to be the best partners that we can be," Kotselich said.
While individual funding for non-profits is being cut, the city has created a $1 million project reserve fund that organizations can apply for as projects arise.
The city is currently in the budget process for next year, and Kostelich said it is possible for funds to continue reducing.
A list of the funding reductions for outside agencies can be found below:
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