PRESS RELEASE
"A New Chapter for the City of Houston" - Mayor Whitmire Announces Proposed FY '26 Budget
"We are fixing things, and if we can get city government functioning at the level Houstonians expect and deserve, nothing will hold us back," said Mayor John Whitmire.
May 6, 2025 -- Standing with department directors and public safety chiefs helping streamline municipal government, Mayor John Whitmire announced details of his proposed FY 2026 balanced budget, which puts Houston on a path to a more sustainable financial future.
The budget represents a new chapter for the City of Houston grounded in fiscal responsibility, service delivery reform, and a commitment to restoring trust in local government.
- The FY2026 Proposed Budget for all funds, excluding transfers, totals $7 billion.
- The FY2026 Proposed General Fund budget of $3.03 billion reflects a decrease in spending of $74.5 million or 2.4 percent from the FY2025 Current Budget of $3.11 billion.
- The decrease is primarily attributable to implementing the Voluntary Municipal Employee Retirement Payout Option, citywide category management, organizational restructuring, and other key initiatives recommended by the Citywide Efficiency Study.
- This budget includes an increase to budgeted base pay of 3.5 percent and 10 percent, respectively, related to the meet-and-confer agreement with municipal employees and the draft meet-and-confer agreement with police.
- Public safety remains a top priority, representing $1.8 billion, or 71.5 percent of the total General Fund spend, excluding debt service and PAYGO. This includes funding for five (5) police cadet classes and nine (9) fire cadet classes.
- Consolidates department functions without sacrificing services to Houstonians.
"This is a special day for me as a public servant to do what Houstonians deserve: to be transparent and tell them we have done everything we can to provide city services through efficiency, eliminating waste, duplication, conflicts of interest, and corruption," said Mayor Whitmire, who noted that his budget does not fund the old model of city government.
Vice Mayor Amy Peck, Council Member Sallie Alcorn, and Council Member Letitia Plummer joined Mayor Whitmire at the budget announcement. Starting Wednesday, May 7, Houston City Council will review the administration's FY 2026 budget during a special BFA meeting and will hear later from city department directors followed by a series of budget workshops allowing Houstonians to comment on the proposed plan.
"We are being very transparent with citizens about meeting our challenges, but I also emphasize that we are not through. We will implement the reorganization of city government as we go forward. We will continue to collaborate with other levels of government, but we will also make sure that we listen to Houstonians. We will discuss our challenges across the city in the future," said Mayor Whitmire.
The new fiscal year begins July 1, 2025.