HOUSTON – The city’s growing budget crisis took center stage at this week’s city council meeting as Mayor John Whitmire and City Controller Chris Hollins debated an alarming $72 million overtime overrun in the fire, police, and solid waste departments. The dispute highlights deep concerns over financial planning as Houston faces a $330 million budget shortfall heading into the next fiscal year.
Mayor Defends Strategy, Cites Efficiency Plan
Speaking to reporters after the meeting, Mayor Whitmire pushed back against Hollins’ assessment, insisting that his administration is actively addressing the issue.
“We’re on it. We know what we’re doing,” Whitmire said, pointing to an efficiency analysis conducted by Ernst & Young as a tool for cost-saving measures. He also emphasized that leadership changes within the fire, police, and solid waste departments—each of which saw new directors appointed in the last six months—will help streamline operations.
“Give them an opportunity to use their model and operations, using the Ernst & Young report,” Whitmire added.
Record-Breaking Overtime Spending Raises Concerns
While overtime costs have historically exceeded budgeted amounts, Hollins warned that the current overspending is unprecedented. In fiscal year 2023, police and fire exceeded their overtime budgets by $12.9 million and $6.6 million, respectively. This fiscal year, those figures have more than doubled to $26.1 million and $42.7 million.
“The facts are the facts, and no spin changes the situation that we’re facing,” Hollins told Houston Public Media. He urged Whitmire’s administration to take the report seriously and work toward long-term financial stability.
Extreme Weather Events Strain City Resources
A significant factor in the spike in overtime spending was Houston’s response to extreme weather events, including Hurricane Beryl in July and a January winter storm. While the city is eligible for partial federal reimbursement for overtime costs incurred during Beryl—since it was declared a disaster—it will not receive federal aid for overtime spent during the winter storm.
City Council Member Abbie Kamin stressed the need for better budgeting to handle the increasing frequency of extreme weather.
“I do not believe as a city we accurately account for what is needed in natural disasters or extreme weather, given how many we are seeing annually,” Kamin said. “Moving forward, we have to budget for more of that without relying too heavily on federal reimbursements—especially given the potential for cuts under President Donald Trump’s administration.”
Hurricane Beryl and last May’s derecho windstorm cost the city about $50 million after federal reimbursements. Without that aid, Houston would have faced over $210 million in unexpected costs.
Calls for Revenue Increases Intensify
The financial strain has renewed debates over how Houston should generate revenue. Some city council members have pushed for a property tax increase or a garbage collection fee to offset rising expenses.
“My goal throughout this process is to make the hard decisions,” said Council Member Joaquin Martinez. “We don’t have ARPA dollars. We knew they were running out, and so now it’s time to make some of these hard decisions.”
Mayor Whitmire, however, has resisted a property tax hike. Instead, he successfully secured $32 million from the state to cover debris removal costs, helping to prevent an immediate increase in tax rates.
What’s Next?
As the city prepares for the next fiscal year, officials will need to find solutions to bridge the budget gap while maintaining essential services. Whether through spending cuts, tax increases, or operational efficiencies, the coming months will be crucial in determining Houston’s financial future.
Stay with madihamasood.live for ongoing coverage of Houston’s budget crisis.
