HOUSTON — Balancing multiple fiscal challenges, Mayor Johh Whitmire rolled out his proposed city budget for the 2025 fiscal year, avoiding tax hikes and garbage fees but also warning of difficult financial choices looming in the future.
Whitmire announced the $6.7 billion budget Tuesday, highlighting his priorities as the city grapples with budget shortfalls.
“The 2025 budget will not raise your taxes and it will not reduce services,” Whitmire said. “In fact, I’m going to document in the moment, it’s improving services.”
Whitmire said his proposal does not include property tax increases or other proposed mechanisms to raise revenue like garbage pickup fees or an extension of parking meter hours in downtown.
Instead, the mayor said he intends to cover an estimated $160 million deficit using some of the city’s remaining American Rescue Plan Act funds.
The vision, the mayor said, is to use fiscal year 2025 as a pathway to better financial footing for the city in fiscal year 2026.
Moving forward, cuts are likely imminent.
“Everything's on the table,” Whitmire said. “We're going to listen to Houstonians, we're going to see where the cost savings have gotten us and then we're going to make tough decisions. We have no choice.”
Whitmire said it is likely Houston City Council will approve a contract with a team from Ernst & Young to conduct a city-wide efficiency review to find ways to cut costs and make departments more efficient.
The mayor’s proposed budget and long-term plans must also balance the agreement he struck with the firefighters union. The proposed budget for 2025 has built in the pay raises that are part of the new collective bargaining agreement, although specifics are still being worked out, the mayor said.
At Tuesday’s event, the mayor reaffirmed his belief the firefighters deal should move forward and be part of the city’s fiscal reality.
“I don't have time for politics when we're writing a budget or play games,” Whitmire said. “There's a time to campaign and there's time to go to work. The time to work is before us.”
The budget proposal does not include adjustments related to a recent appeals court decision in a case alleging the city misused funds designated for drainage projects. That ruling could cost the city millions of dollars, but Whitmire said Tuesday conversations were ongoing between the city and attorneys for the plaintiffs to reach a settlement soon.
Another prong of Whitmire’s efforts for improved financial health for the city includes greater collaborations with the private sector and leveraging his experience in the State Capitol to improve aid and funding from Austin to Houston.
Budget Town Hall Tour
Officials are set to host four town halls to discuss the budget proposal with the public. After the tour, the budget process moves to the City Council for consideration. Below are the details for those events.
- May 16 at 6 p.m.
- Southwest Multi-service Center
- 6400 High Star Drive
- May 18 at 11 a.m.
- Denver Harbor Multi-service Center
- 642 Market Street
- May 21 at 6:30 p.m.
- Sagemont Park Community Center
- 11507 Hughes Road
- May 28 at 6 p.m.
- White Oak Conference Center
- 7603 Antoine Drive