HOUSTON, Texas (KTRK) — The Houston Professional Firefighters Association has received $650 million in settlement funds from the City of Houston. Union President Marty Lancton confirmed the delivery of the checks, noting that auditors are currently verifying the amounts.
According to Controller Chris Hollins, the median lump sum payment for individual firefighters is $165,000, with some receiving up to double that amount. The payments are backpay for seven years without a contract, resulting from a prolonged stalemate between the union and the city. During this period, Houston firefighters were paid less compared to their counterparts in similarly sized cities. Hollins stated that, on average, the backpay amounts to approximately $20,000 per year per firefighter.
Including interest, Hollins estimates that the total cost to the city will exceed $1 billion. He expressed concerns about the city’s financial planning, noting that the city has been using one-time federal funds from COVID-19 relief to cover these payments and other expenses, but those funds are depleting. Hollins emphasized the need for the city to align its recurring expenses with recurring revenue.
During a City Council meeting, when Hollins voiced his concerns, Houston Mayor John Whitmire responded with a quip, acknowledging Hollins’ role but downplaying the gravity of the financial issues. Hollins maintained that his concerns are not political but are based on the city’s financial realities.
The S&P has placed Houston on a negative outlook, indicating a one-in-three chance that the city’s debt rating could be downgraded within the next two years. This rating is due to the city’s new financial obligations and the dwindling fund balance without a sustainable plan for funding.
