City of Houston financial issues, including proposed budget and back pay for firefighters, remain under review as officials delay vote

HOUSTON, Texas (KTRK) — There are many questions currently being asked about the city of Houston’s finances.

Are we broke?

How can we afford to pay $650 million in back pay to firefighters?

How did we eliminate deficits in the proposed $6.7 billion budget for the next fiscal year?

Let’s start with the budget.

The City Council was scheduled to vote on its approval Wednesday, but it was delayed so it could offer amendments and spend more time analyzing its details.

This is standard practice when it comes to something as important as the city’s budget.

Mayor John Whitmire, who has publicly declared the city bankrupt, said the proposed budget was balanced thanks to federal funds earmarked for the COVID-19 pandemic.

That won’t be an option after the next fiscal year, which is why Whitmire said “everything is on the table” for future budgets. This could include raising taxes, establishing garbage collection fees and reducing spending on municipal services.

SEE ALSO: Houston Mayor John Whitmire says city’s ‘ShotSpotter’ gunshot detection tool is a ‘gimmick’

Whitmire said other issues factored into his decision to avoid asking the public for additional funds at this time.

“I didn’t want to ask for new revenue until we could assure the public that there are no more corrupt deals in water contracts,” Whitmire said. “That there are no conflicts of interest.”

The City Council was also supposed to vote Wednesday on approving $650 million for back pay for firefighters, but that was delayed so Comptroller Chris Hollins could take a closer look at the proposal.

Hollins told ABC13 that amount of money requires a bond that will ultimately cost the city more than $1 billion by the time it is repaid in “25 to 30 years.”

The comptroller added that he doesn’t think the city is bankrupt, but he agrees that changes need to take place in order to maintain good financial health.

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