HOUSTON – Houston Mayor John Whitmire is pushing back against City Controller Chris Hollins’ warning that the city could be facing a $174 million general fund deficit in 2026, calling the outlook overstated and insisting Houston can close any gap without raising taxes.
Hollins says the city is headed for a budget short fall this year, arguing the city’s current budget was presented as balanced while relying heavily on reserve funds and projections that didn’t materialize. He has also pointed to soaring police and fire overtime as a major driver of the deficit, saying those costs were not properly budgeted.
In a statement provided to KPRC 2, Whitmire said his administration has “a solid plan to balance the budget without raising taxes,” citing the Ernst & Young efficiency study as a roadmap for cost savings.
“Based on the EY (Ernst and Young) Efficiency study, my administration is implementing efficiencies and eliminating waste, fraud and duplication, which will help reduce the shortfall,” Whitmire said.
The mayor also criticized Hollins’ absence from a recent city finance meeting.
“The controller missed this week’s finance meeting, where we began outlining the administration’s approach,” Whitmire said.
Whitmire pointed to past disagreement over taxes, saying Hollins previously claimed the city would need to raise property taxes.
“Last year, the controller said we would have to raise property taxes,” Whitmire said. “He was wrong then, and he is wrong now. We will balance the budget without raising taxes, and I look forward to working with him.”
Hollins also released the following statement:
“My role is to be the taxpayers’ watchdog. My office monitors the City’s finances, analyzes the numbers, and puts clear, actionable information in front of the mayor and City Council so they can make informed decisions.
We are providing the information, but it is sadly not being acted upon. And the result is what we are experiencing today.
We are now facing a $174 million General Fund deficit for Fiscal Year 2026—the largest single-year drawdown of reserves in Houston’s history.
This didn’t happen overnight. It happened one decision at a time.
Time and time again, we have warned the mayor about the obvious consequences of his poor financial decisions, and we have highlighted the need for a real financial plan for Houston. The mayor continues to ignore these warnings, leaving Houston taxpayers on the hook.”
City leaders have been grappling with budget pressures tied to rising costs, including overtime spending in public safety departments. The 2026 budget process is expected to continue in the coming months as the administration and council refine projections and identify savings.
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