Houston Mayor unveils $7 billion budget with no tax increase, fees or deficit

HOUSTON – The Houston Chronicle reports that Houston Mayor John Whitmire on Tuesday kept his promise to balance the city’s finances, unveiling a $7 billion budget with no tax increase or new fees for city residents. The city was facing a budget deficit of more than $330 million during Whitmire’s time in office. Whitmire credited department consolidations for eliminating part of the deficit. The city also saved money in a legal agreement that requires the city to invest millions more in streets and drainage — but not all at once. The budget proposal does not factor in potential state money as lawmakers convene in Austin for their legislative session. One contentious bill would give Houston millions more from the Harris County Toll Road Authority.

While the city used METRO dollars to help offset costs incurred as a result of a drainage lawsuit that led to the legal agreement, the city is not using any more METRO dollars to bolster the budget, nor did it get any additional revenue from Harris County, Whitmire’s staff said. “This day is one of the reasons I ran for mayor,” Whitmire said. Whitmire’s 2026 budget is $7 billion, which is 2.3% more than last year’s budget. While the city plans to operate with more money this coming fiscal year, around $74.5 million was cut from the city’s nearly $3 billion general fund, which is bolstered by property and sales taxes. The general fund cuts came from consolidations and Whitmire’s voluntary retirement plan, which was open to all retirement-eligible employees except for police and fire. Whitmire’s team estimated the city would save around $30 million from retirements alone.