Houston’s proposed deal with city firefighters will cost nearly $1.1B to 1.3B for taxpayers

It has obtained details regarding the financial implications of Houston’s proposed agreement with the city’s firefighters, shedding light on the potential cost to taxpayers.

City Controller Chris Hollins revealed that the city was already facing a structural deficit ranging from $160 to $200 million prior to the settlement. This indicates that expenses surpass revenue by hundreds of millions annually.

Hollins disclosed that back pay for firefighters is projected to cost taxpayers between $1.1 billion to $1.3 billion over the next 25 to 30 years, averaging $40 million per year. Additionally, promised raises over the next five years will incur a cost exceeding $140 million.

According to Patrick “Marty” Lancton, president of the Houston Profession FireFighters Association, delaying the settlement would have led to a liability exceeding $1.2 billion plus interest.

While the city intends to utilize federal COVID funding to cover the initial year of the firefighter settlement, other avenues for funding the remainder, such as implementing a trash fee or lifting the property tax revenue cap, have been suggested.

Hollins emphasized the significant impact of these financial commitments, highlighting the city’s growing annual deficit, which could reach $230 to $280 million after factoring in the additional costs associated with the new contract and judgment bond.

Lancton underscored the urgency of addressing the shortage of firefighters and its adverse effects on response times, stressing the importance of rebuilding the fire department to ensure public safety.