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On May 14, 2024, Mayor John Whitmire unveiled his proposed FY '25 City of Houston budget. Notably, the budget does not include any new taxes or fees. During a news conference attended by city council members and city department directors, Mayor Whitmire underscored that his proposal seeks to address years of financial deficits inherited by his administration through operational efficiencies.
"I have only been mayor for five months, and I inherited a mess, which at the time was a projected budget gap of $160 million heading into FY'25," said Mayor Whitmire. "The Fiscal Year 2025 Proposed Budget is my first budget, and a large financial challenge is ahead. While we were able to close the budgetary gap using a combination of recurring expenditure reductions and a draw on fund balance, we know there is much more work to do ahead of us."
The proposed budget totals $6.73 billion—an increase of $442 million or 7 percent compared to the current FY2024 budget of $6.29 billion. The FY2025 Proposed General Fund budget reflects an increase in spending of $62.3 million or 2.1 percent from the FY2024 Current Budget—primarily attributable to pay increases for police and increases associated with the draft Collective Bargaining Agreement (CBA) for fire.
"While we are looking for efficiencies and cost savings, we cannot discount the fact that we are under strict limitations on our revenues," said Mayor Whitmire. He identified three revenue constraints unique to Houston: a locally imposed revenue cap on top of the state cap; no dedicated revenues to support solid waste operations; and no support from a city-owned utility.
Despite these challenges, Mayor Whitmire remains optimistic about Houston's future: "Houston is a great city with a bright future. We will seek to partner in new ways with other levels of government, adjust how we deliver services and the costs required to do so, and discuss reasonable potential modifications to our revenue model."