Houston Office of Business Opportunity unveils FY2026 budget, projects fee revenue and program adjustments

Silinthia Hoard, director of the Houston Office of Business Opportunity, presented the office’s proposed fiscal 2026 budget to the Houston City Council, outlining personnel changes, revenue projections and program performance metrics.

The proposal shows a total OBO budget of about $4.8 million, with personnel costs making up the largest share of general‑fund spending. Hoard told council members the office reduced its structure by four positions and cut roughly $41,000 from the non‑personnel budget as part of a larger $345,000 reduction tied to a review of the office’s organization.

Hoard summarized the office’s year of activity and outcomes. Among the figures she cited: two department services training institutes and three road shows; reviews of 485 contract goal settings; attendance at 137 pre‑bid meetings; and one staff promotion in the department services unit. Hoard said the office’s “payer play” interfund transfer program generated about $917,000 for crisis‑diversion work connected to CAPS programs and that OBO’s support for crisis diversion helped fill 4,601 calls, which she said enabled a reallocation of about $2.8 million in first‑responder resources to direct services.

On contract compliance, Hoard said OBO monitored 736 contracts, attended 115 kickoff meetings and 140 pre‑certification meetings, performed 164 audits and 115 contract closeouts. She reported contract ratings of 84 outstanding, 19 “satisfactory due to good‑faith efforts,” 12 satisfactory and 42 unsatisfactory, and noted OBO collected more than $15,000 in prevailing‑wage penalties.

In certification and designations, Hoard said the office approved 358 new MWSBEs and 124 new DBE/ACDBE certifications, processed 1,503 renewals and approved 457 Hire Houston First applications. She said a Texas HUB audit produced no findings. The office also adopted a disparity study, added veteran certification and expanded small‑business elements of the program, and logged 20 Title VI complaints of which 19 were processed out or dismissed.

Hoard described program‑level changes and targets for FY2026. OBO plans separate goods and services aspirational goals (15% and 19%, respectively) and holds construction at 34%. Several performance targets were adjusted downward for realism in 2026, she said, citing staffing changes: a number of vacancies reduced earlier‑year personnel expenditures and some vacancies are being filled in FY2026, producing a modest 1% projected increase in personnel spending versus FY2025.

On revenue, Patsy Jackson, OBO chief financial officer, walked council through slides showing an expected 19% ($290,000) increase in general‑fund revenue and a $49,000 (4%) uptick in special‑revenue funds versus FY2025; combined, she said, those changes amount to a projected 10.82% increase in revenue by fund. Jackson attributed the general‑fund increase in part to a realignment of staff and an increase in prevailing‑wage penalties, and she said the special‑revenue uptick reflects an anticipated increase in construction contracts with agencies listed on OBO slides as HPW, HAS and HCD.

Councilmember Alex Martinez asked about a previously discussed fee for other government entities. Hoard said a fee study conducted with the finance department produced a proposed fee schedule for applications and renewals included in the presentation appendices (page 28). She said the office expects to implement the schedule “hopefully this fiscal year” and estimated the initial application and renewal fees would generate around $200,000; she added that expediting and interagency fees would be considered in a second phase of the study.

When asked whether OBO had federal grants at risk, Hoard replied, “No. OBO does not receive federal funding.”

The presentation concluded with council members thanking staff; there were no formal votes on the OBO budget recorded during the session.