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Houston Mayor Proposes Balanced $7 Billion Budget to Address $330M Deficit Without Tax Hikes

Mayor John Whitmire’s 2026 budget plan incorporates significant cost-cutting measures, phased legal settlement payments, and increased public safety funding, while preserving essential city services.

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Overview

  • The $7 billion budget proposal eliminates a $330 million shortfall without increasing taxes or fees, relying on $289 million in general fund cuts and $30 million in annual retirement savings.
  • A recent lawsuit settlement over drainage fund mismanagement allows $100 million in costs to be phased over several years, easing immediate financial pressure.
  • Public safety funding sees significant increases, with $67 million added to the police budget and $23 million to the fire department, representing nearly 60% of the general fund.
  • Operational efficiencies, including department consolidations and renegotiated vendor contracts, are projected to save millions, with no anticipated reduction in city services.
  • The budget addresses a $107 million gap by drawing on the city's fund balance, while future budgets may consider job cuts or new revenue measures if necessary.