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Houston controller details FY26 budget gap, urges residents to weigh in at May 21 public hearing

3235021 · May 8, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City Controller Chris Hollins laid out the city's fiscal picture, saying the proposed FY26 budget projects about $2.9 billion in general-fund revenue against roughly $3.0 billion in expenditures and urging residents to attend a May 21 public hearing and contact councilmembers as the council considers amendments in late May.

City Controller Chris Hollins on Tuesday explained the City of Houston's proposed fiscal year 2026 budget and urged residents to participate in upcoming hearings, saying the proposed plan leaves a structural shortfall the city must address.

"As your city controller, I am your independently elected chief financial officer," Hollins said, describing his office's role overseeing investments, auditing operations and "certif[ying] the availability of funds." He told the Ripley House audience that the proposed FY26 budget totals about $7 billion overall, with roughly $3 billion in general-fund spending and $4 billion in enterprise funds.

Hollins emphasized the recurring nature of the city's structural shortfall and its drivers. He said the city's current fiscal-year shortfall was about $336 million, driven largely by personnel costs and a court ruling that required the city to increase annual spending for roads and drainage by about $100 million. Under the FY26 proposal he reviewed, he said the projected general-fund gap narrowed to about $107 million.

Why this matters: the general fund pays for core services'police, fire, parks, libraries and trash pickup'and is financed primarily with property and sales taxes. Hollins said police and fire payrolls and debt-service payments together account for the largest shares of the general fund. He urged residents to participate in the process so their priorities inform council…

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