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Mayor Whitmire proposes "Balanced" City of Houston Budget for 2026

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Published  May 6, 2025 6:33pm CDT
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FOX 26 Houston
Houston Mayor unveils budget for the coming year

Houston Mayor unveils budget for the coming year

Houston Mayor John Whitmire unveiled his budget for the upcoming year. FOX 26 Political Reporter Greg Groogan has more.

The Brief

    • Mayor Whitmire presents a $7 billion budget to erase a $300 million deficit, emphasizing transparency and integrity.
    • Over 1,000 retirement-eligible employees accepted severance packages, saving $100 million.
    • Legal settlements and audit-driven reorganizations contribute to cost savings without raising taxes.

Houston Mayor John Whitmire is set to present City Council a "balanced" $7 billion budget for the coming fiscal year.

 If approved, the measure would erase an estimated $300 million deficit reported earlier this year.

Mayor counting on audit-driven savings

What they're saying:

"We don't tolerate conflicts of interest or corruption . We don't give contracts to non-existent businesses," said Whitmire.

 A big portion of the budget hole will be filled by the departure of more than 1000 retirement-eligible City employees who accepted severance packages.

Also contributing mightily is Whitmire's settlement of the major lawsuit alleging improper diversion of the dedicated "Street and Drainage" fee.

The Mayor is also counting on substantial savings from the audit-driven reorganization and consolidation of all municipal operations and procurement.

Council to review and vote on budget

What's next:

"Through efficiencies, eliminating waste and duplication, reorganization of City Departments, cost-saving measures. How about the retirees? We very compassionately offered our employees, the 2,800 who are eligible, a very compassionate incentive program certainly when it comes to their healthcare costs. 1050 (accepted). That will save us a $100 million going forward in 2026," said Whitmire.

Whitmire, who has avoided efforts to raise taxes during his 16 months in office, will lay out his budget in detail to City Council Wednesday.

 While $7 billion is the total city's spending, including dedicated funds, the "general fund" is limited to $3 billion with about 60 percent allotted exclusively to public safety.

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