From Houstonchronicle · · 1m 10s
Houston budget shortfall deepens with flat tax pledge
Houston's budget gap widens to $88 million as mayor insists on keeping property taxes flat despite revenue drops.
In brief
Houston's budget gap widens to $88 million as mayor insists on keeping property taxes flat despite revenue drops. Houston's budget shortfall has grown to $88 million after the city adopted a flat property tax rate, with officials saying the city will cover the gap using reserves and higher sales tax revenue…
Budget shortfall grows
Houston's budget shortfall has grown to $88 million as city finance officials report the gap from the current budget year.
Tax rate remains flat
Mayor John Whitmire has pledged to keep the city property tax rate at 51.919 cents per $100 in appraised value for the third year.
Revenue decline explained
The $63 million drop in revenue comes from historically high property value reductions due to protest processes since the city adopted the budget in June.
Reserves cover shortfall
The $88 million shortfall will be covered by dipping into city reserves and offset by higher-than-expected sales tax revenue.
Council member's warning
Council Member Sallie Alcorn said the city is doing more with more, not less, as improved trash services strain the utility system.
“We are doing more with more, we have true needs that ultimately at some point we can’t keep saying i have to look under every rock.”
What to remember
Houston's budget shortfall has grown to $88 million after the city adopted a flat property tax rate, with officials saying the city will cover the gap using reserves and higher sales tax revenue.
