Houston still facing financial hurdles

Houston finances have long been bad, but the city’s elected officials often try to brush over claims by saying that they pass balanced budgets. They leave out that these aren’t structurally balanced meaning that revenue doesn’t exceed reoccurring expenses, rather the budget gaps are filled with one-time funding sources and asset sales. The city also regularly points to their decreasing of the tax rate, but fails to mention that because of increased property appraisals they're still bringing in more in property tax revenue.

Controller Chris Brown, again, sounded the alarm saying he expects, in just a few years, a deficit nearly double what it was when he came into office. "That budget deficit is growing and it's not just growing by a few million, it's growing by $100 million." The city’s finance director, Tantri Emo, also acknowledged that they made no financial cuts during the pandemic, unlike much of the rest of the country.

Brown says that, but for, federal relief aid, the city would've had to lay off 2,000 employees but after the one-time relief aid came, the Mayor and Council committed to reoccurring expenses without having reoccurring revenue, because of this, he projects the city could have to lay off 3,000 employees.

Houston’s budget is expected to be announced by the mayor in the coming weeks will likely increase spending in the same fashion we have seen in recent years. If the city council members want to set the city up for long-term financial success, they’ll have to start addressing spending increases rather than focusing on filling budget gaps.

Charles Blain is the president of the Urban Reform Institute.