Houston mayor’s office proposes leaner staffing, shifts cultural‑affairs work amid budget changes

The Budget & Fiscal Affairs Committee on Monday heard a presentation on the mayor’s FY2026 budget for the Mayor’s Office that outlines a smaller staff footprint, reorganizations to reduce management layers and changes in how some programs are administratively housed.

Steven David, a mayor’s office staff member, told the committee the proposed budget “align[s] it to the mayor’s strategic objectives” of executive oversight, tourism promotion and the interfund transfers that keep city operations running. David said the office reduced full‑time equivalent (FTE) positions from 86 in FY2025 to 75 for FY2026 and that eight employees elected a voluntary municipal retirement payout option, producing a net budget reduction of $1,030,000.

The budget presentation said roughly 85% of the mayor’s office budget sits in a “government that works” category that covers central executive functions. Staff described plans to flatten the organization from four management layers to three and to raise supervisors’ direct‑report spans of control from a current snapshot in which 71% of supervisors had three or fewer direct reports to an expected 35% after reorganization and staffing reductions.

Budget and fund details presented to the committee showed an $8,130,000 general‑fund allocation for the mayor’s office and projected increases in tourism promotion (hotel occupancy tax or HOT) funds — various slides cited a $1.7 million–$1.9 million increase in tourism fund spending tied to higher HOT revenue projections produced by Houston First — while state franchise receipts tied to cable subscriptions were projected to fall (the presentation cited a $348,000 decline related to fewer cable subscribers). The mayor’s office noted a $1.8 million services line in the Houston Cable Fund that primarily covers a payment to the nonprofit Houston Media Source and closed captioning services.

Committee members asked about specific programmatic changes. On cultural affairs, Council Member Julian Ramirez asked about the Mayor’s Office of Cultural Affairs (MOCA) leadership and future staffing. David said MOCA’s staffing was reduced (from four FTEs to two budgeted positions) and that one of those two positions is currently vacant; the office is seeking a candidate who can work with financial systems such as SAP and with contract and reporting functions rather than a primarily public‑facing role. He said the mayor wants the office “to do the fundamentals” — contract management, invoice tracking and timely payments for artists and organizations — before pursuing a larger strategic arts agenda.

Public commenters pressed the committee to preserve arts support even as the mayor’s office tightens internal operations. Robert Reubaugh Jackson, a District D resident and member of the Q Arts Task Force, said community voices should be central as the office rebuilds and asked that residents of all income levels have a voice in arts funding and programs. Craig Hauschildt, identified as executive director of the Theater District, said the arts sector generates substantial economic activity and that MOCA’s budget “currently sits at approximately $250,000 reflecting a 55% decrease from last year’s budget,” urging clarity on how funds are being reallocated and asking that reallocated monies continue to support the arts.

On economic development and Tax Increment Reinvestment Zones (TIRZs), committee members asked about the timing and substance of an Ernst & Young study. Gwen Tillotson Bell, chief economic development officer, was identified as the executive who oversees TIRZ‑related programs. Steven David said the city expects to brief the mayor in the coming weeks on the final report. He described two parts to the analysis: a TIRZ spend analysis to standardize bookkeeping and an “forensic accounting dashboard” to flag transactions that look out of line so staff can perform triage and deeper reviews.

Committee members asked for earlier delivery of TIRZ budgets in future cycles and pressed on the share of ad valorem tax increment currently committed to TIRZs; David said the city’s portion of TIRZ increment was about 23% of the city’s taxable value last year, roughly $230 million, below a 25% cap on the city’s portion of increment.

The presentation also covered a small general‑fund revenue uptick tied to the city’s digital kiosk program (about $221,000 higher than the FY2025 estimate) and reiterated that HOT revenue projections are produced by Houston First’s macroeconomic analysis of hotel occupancy in the Central Business District and a three‑mile radius around it.

No formal motions or votes were taken during the committee’s mayor’s office presentation. The committee received public comment and directed follow‑up questions to staff about MOCA staffing, TIRZ reporting and revenue assumptions. The mayor’s office and committee members said they will return with additional information, including final Ernst & Young materials and follow‑up detail on MOCA reallocation and contract management timelines.

The committee adjourned the mayor’s office portion and scheduled the next agenda item on the city council budget after a short break.