Houston Mayor John Whitmire Proposes Balanced $7B Budget Without Raising Taxes or Fees

Whitmire credited cost-cutting strategies such as department consolidations and a voluntary retirement program for helping to close the gap. The retirement program alone is expected to save the city $30 million, with over 1,000 employees opting in.

“This day is one of the reasons I ran for mayor,” Whitmire said during a press conference alongside city officials.

The new budget increases overall spending by 2.3% compared to last year, yet cuts nearly $74.5 million from the city’s general fund — primarily through efficiency measures rather than reductions to essential services. Over half of the general fund (54%) is dedicated to public safety, with $1.1 billion allocated to police and $659 million to the fire department.

Key Budget Highlights:

• No tax increase or new fees for residents

• $30M saved through employee retirements

• $15M saved via department consolidations

• Public safety remains top funding priority

Despite significant cuts in areas like the Department of Neighborhoods (down 48%) and Public Works (down $21.8M due to an accounting shift), Whitmire insists city services will remain intact. Much of the neighborhood budget cut stems from transferring code enforcement duties to Public Works.

Whitmire’s proposal does not rely on uncertain revenue sources such as state legislative funding or additional METRO dollars, despite a pending bill that could give Houston access to more Harris County Toll Road Authority funds.

The budget also reflects the cost of previous agreements, including a $650 million fire union back-pay settlement and a recent police union contract that raises new cadet salaries by 36.5% over five years. The city is seeking to curb employee overtime costs by boosting recruitment.

City Council will begin reviewing and amending the budget later this month, with the first official vote scheduled for May 28 and amendment discussions on June 4.