HOUSTON – Mayor John Whitmire unveiled his administration’s proposed fiscal year 2026 balanced budget.
The proposed budget includes cost-cutting measures aimed at reducing expenses without cutting services.
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In a one-on-one interview with KPRC 2’s Gage Goulding, Whitmire said much of the money previously used to pay the city’s bills came from federal funding that has since dried up. He said that before considering a tax increase, the city should first focus on cutting waste.
During the announcement, Whitmire said there is no deficit and that the budget is balanced for 2026 through reorganization and cost-saving measures.
READ: Mayor John Whitmire talks public safety improvements in one-on-one KPRC 2 interview
Houston’s proposed FY 2026 budget totals $7 billion and is the city’s first balanced budget in years.
Whitmire said the new budget prioritizes hiring more police officers, increasing cadet classes and raising police salaries. All city employees, including Houston police, will receive a 3% raise.
The mayor hopes these efforts will attract more people to apply to the Houston Police Department instead of to surrounding cities and counties.
While many positions remain open, to avoid new taxes or layoffs, the budget imposes department spending caps and freezes some hiring.
Although the budget is balanced this year, the city faces projected deficits starting in FY 2027, especially without new revenue sources or changes to state-imposed tax caps.