HOUSTON, Texas (KTRK) — On Wednesday, the Houston City Council approved a $6.7 billion budget.
“We recognize the challenges ahead, but there will be no fee or tax increases for residents,” stated Houston Mayor John Whitmire.
The budget faces a $200 million shortfall for fiscal year 2025. Controller Chris Hollins announced that the city plans to cover this gap by drawing from its “historically high” general fund, akin to a savings account. Currently, this fund holds approximately $450 million, meaning over 40% will be utilized this fiscal year.
Whitmire mentioned that ongoing audits might uncover additional revenue sources for next year.
However, these financial plans hinge on finalizing a deal with the Houston Firefighters Union. The council has approved $650 million in settlement bonds to fund the agreement. Hollins indicated this deal would ultimately cost taxpayers between $1.2 billion and $1.5 billion over the next 30 years, accounting for interest.
Despite this approval, the council couldn’t vote on the agreement itself due to a delay from Hollins. The agreement needs Hollins’ certification to appear on the council’s agenda. So far, he has withheld this certification.
“The council’s action authorizes the issuance of funding judgment bonds. This allows us to proceed to the market for Attorney General approval, but we still need a funding agreement in place,” explained City Attorney Arturo Michel.
The longstanding dispute between the City of Houston and its firefighters is close to resolution but still faces obstacles. On June 5, Hollins declined to certify the agreement, citing the need for more review time. He sent additional questions to Whitmire’s office on June 11, seeking further information. Whitmire’s office responded that some questions could not be answered, as they pertained to confidential negotiation details.
One key response from Whitmire’s office stated, “According to the City’s Charter, all administrative work, including negotiations and settlements with unions, falls under the sole control of the Mayor. Therefore, we cannot disclose details about the negotiations themselves.”
Whitmire and Michel argued that the controller’s role is limited to certifying the $6.5 million in attorney’s fees related to the deal. However, Hollins, disputing this interpretation, asserted his duty as a taxpayer watchdog.
Whitmire warned that Hollins’ delay might cost the public up to $500 million. If the agreement isn’t approved soon, the settlement might go to court, potentially doubling its cost. The firefighters union claims they are owed $1.2 billion under state law requirements.
“Delaying this deal jeopardizes public safety,” said Whitmire, emphasizing the risk of increased costs and prolonged litigation.
The current deal aligns firefighter compensation with public sector standards, includes back pay as paid time off (non-pensionable), and bundles multiple years. If rejected, a court could require private-sector equivalencies, individual year accounting, and adjustments for inflation and wage increases.
Marty Lancton, president of the Houston Professional Firefighters Association, accused Hollins of political maneuvering, citing his previous mayoral ambitions and support for Whitmire’s rival.
“There’s nothing political about this process,” Hollins countered, insisting his actions are about ensuring transparency and accountability.
Should the deal fall through, the city would still face a budget shortfall of $100 million to $150 million, according to Hollins. Meanwhile, firefighters, without a contract for eight years, are experiencing low morale and recruitment challenges, with many leaving the department.
