Houston's OBO reports accomplishments and budget changes for fiscal year 2025

The Houston Office of Business Opportunity (OBO) showcased significant achievements and budgetary changes during the FY 2026 Budget Workshop held on May 19, 2025. Among the highlights, the office adopted a new disparity study, expanded its Small Business Enterprise (SBE) program, and processed 19 out of 20 Title VI complaints, demonstrating a commitment to equity and compliance.

OBO's work aligns predominantly with the city's "government that works" priority, accounting for 90% of its efforts. This focus supports small, minority, and women-owned businesses while ensuring adherence to labor standards and prevailing wage laws. The office monitors city contracts comprehensively, from initiation to completion, reinforcing its role in fostering a fair business environment.

In a strategic move to enhance operational efficiency, OBO has restructured its management, resulting in a reduction of four positions and a budget cut of $345,000. This restructuring aims to improve the span of control within the office, allowing for more direct reports and streamlined management processes. Currently, 45% of managers have four or fewer direct reports, but the new structure will ensure that no manager has such a limited span, promoting better oversight and support.

The budget for FY 2026 totals $4.8 million, with personnel expenditures making up a significant portion. While there was a decrease in personnel costs due to vacancies in FY 2025, a slight increase is anticipated for FY 2026 as some positions are filled. The office also noted a decrease in expenditures across several programs, including administration services and workforce development, while seeing increases in certification and compliance areas.

As OBO continues to adapt and evolve, its focus remains on enhancing business opportunities and supporting the local economy, ensuring that Houston's diverse business landscape thrives.