HOUSTON – After six hours of discussion and consideration of several proposed amendments, the Houston City Council today approved Mayor Sylvester Turner’s proposed $5.1 billion operating budget for the fiscal year beginning July 1.
This year, the City of Houston faced a $169 million budget crisis – the worst in recent history – exacerbated by the decline in sales tax revenue during the COVID-19 pandemic.
Through belt-tightening and by tapping into the $404 million in CARES Act funding, Mayor Turner and the City Council managed to pass a fiscally responsible budget that balances revenue and spending without furloughing city employees.
The approved FY 2021 $5.1 billion budget provides:
- Funding for five police cadet classes
- Funding for four fire department cadet classes
- Restores the City’s fund balance to over eight percent
- The ability of the City to move forward on its top priorities.
“I want to thank each city council member for the work they put in and for unanimously passing the budget. It is a balanced budget that meets the needs of Houston residents,” said Mayor Turner. “We are funding parks, trash collection, libraries, and upgrades to our drainage and streets. This budget provides the basic services our residents expect and deserve.”
Unlike other municipalities, the City of Houston must operate under the property tax revenue cap, while contending with the loss of revenue from COVID-19 in FY2021 and possibly beyond.