City of Houston officials delay voting on 2 important financial matters

HOUSTON, Texas (KTRK) — The City of Houston’s financial situation has raised numerous questions recently.

Firstly, are we facing financial hardship?

Secondly, how can we afford a $650 million payout to firefighters for back pay?

And finally, how did we manage to balance the proposed $6.7 billion budget for the upcoming fiscal year?

Let’s begin with the budget.

The city council was slated to vote on its approval on Wednesday but decided to delay the vote to allow for amendments and a deeper analysis of its contents. This is a standard procedure when dealing with such a critical aspect of city governance.

Mayor John Whitmire, who has publicly stated that the city is facing financial challenges, asserts that the proposed budget is balanced, largely due to federal funds received during the COVID-19 pandemic. However, this source of revenue won’t be available after the upcoming fiscal year, prompting Whitmire to suggest that “everything is on the table” for future budgets. This could include potential tax hikes, implementing a garbage collection fee, and making cuts across various city departments.

Additionally, Whitmire reportedly plans to halt the $3.5 million “ShotSpotter” program, aimed at addressing crime in the city. Other factors contributing to his decision include concerns about possible corruption in water contracts and conflicts of interest.

Regarding the $650 million firefighter back pay proposal, the city council delayed its approval to allow Controller Chris Hollins to conduct a thorough review. Hollins explained to that this significant sum necessitates a bond that will ultimately cost the city over $1 billion over the course of 25 to 30 years.

While Hollins doesn’t believe the city is financially insolvent, he agrees that changes are needed to ensure long-term fiscal stability.