Facing significant economic hurdles, Houston’s chief financial officer braces for budget proposal​on May 4, 2025 at 12:47 pm

HOUSTON — Houston is not in a good place financially, facing a budget deficit north of $300 million.

So, leaders from all across the city are anxiously awaiting Mayor John Whitmire’s proposed budget for the upcoming fiscal year that begins on July 1.

Houston’s chief financial officer hopes to see something different this year.

“What we saw in the last budget was that revenue went down, and costs went up. And that’s the opposite of what we like to see,” Chris Hollins told us on Inside Texas Politics.

By law, budgets have to be balanced. The question is how you get there. And that’s what the Controller is waiting to see.

Houston was already facing a $220 million shortfall, and a costly settlement with firefighters only added to the problem. That settlement cost the city an additional $650 million in back pay.

The city is also legally obligated to spend hundreds of millions of dollars on drainage improvements, including an immediate payout of about $100 million.

A spokesperson from the mayor’s office told us he is planning on presenting a balanced budget on Tuesday, May 6.

A voluntary retirement program for city employees is expected to help.

Hollins says he’s heard that around 1,000 out of roughly 24,000 city employees recently left city government after accepting the package, which reportedly included three months of pay, as well as a one-time payment for any leftover PTO or comp time.

“So, the near-term cost is meaningful. And we have yet to get the final numbers on that. But there are expectations that there will be long-term savings,” the Controller explained.

Hollins has previously warned city council members that he won’t be able to certify the budget if it isn’t paid for, and that means either drastic cuts or new sources of revenue.

“I imagine that what will be in there will be some sort of plan. Whether I disagree with the ins and outs of it or not is a personal matter, but not part of my job. My job is to make sure that money is in the bank to pay the city’s bills,” Hollins said.

The Controller says Houston residents should be involved in the budget process to better understand how their money is being spent.

So, he’s encouraging residents to read the Mayor’s proposed budget, listen in on committee meetings when budget specifics are discussed and join public hearings to provide their own input. Those hearings begin as early as May 15, depending on your council district.

The budget is expected to be passed in early to mid-June.