Dear Residents,

This week, Houston City Council approved the City’s $5.1 billion Fiscal Year (FY) 2022 operating budget in a 16 – 1 vote that took place on Wednesday. At-Large 1 Council Member Mike Knox was the only City Council Member to vote in opposition to the FY 2022 operating budget. This year’s budget process had increased participation by the public through our virtual budget workshops and a productive dialogue throughout the four-day budget workshop process. At-Large 5 Council Member Sallie Alcorn did a tremendous job for the second year in a row with her “Your 2¢” budget survey, which I believe increased interest from the public.

The FY 2022 operating budget prioritizes city services, includes funding for police and fire cadet classes, a commitment to improving neighborhoods, addresses homelessness and encampments, and increases the response to illegal dumping. This year’s budget is balanced and includes an 18 percent pay raise over three years for Houston firefighters, however before City Council voted, the Houston fire union announced a plan to ask voters to approve a charter amendment for binding arbitration. The firefighter pay raise will go into effect on July 1, 2021.

The City of Houston continues to be ready to negotiate with the firefighters’ union, utilizing collective bargaining, which is the same process utilized for HOPE, the municipal employee union, and for the Houston Police Officers’ Union. Also included in the City’s budget is an increase in the number of police officers, police reforms, and continuing funding for the City’s core services.

Like many municipalities, the City of Houston faced a record revenue loss due to the COVID-19 pandemic. The city estimated a cumulative revenue loss of $178 million across FY 2020, FY 2021, and a portion of FY 2022.
 
At the time Mayor Sylvester Turner was proposing the budget he said "Sales tax is one of our hardest-hit sources with an expected $113 million cumulative loss for those fiscal years. Additionally, we are projecting $65 million in revenue losses from other sources such as Charges for Services, Parking Revenues, Mixed Beverage Tax, and others."
 
Due to COVID-19 and the city's existing property tax revenue cap, the loss of revenue has created a $201 million budget shortfall in the General Fund – the largest deficit in recent city history. The City of Houston and our residents continue to be resilient and challenge adversity head-on. I continue to remain committed to the needs of District E and plan to focus on infrastructure improvements for mobility and flood threat reduction over the next fiscal year.

Sincerely,