Houston Mayor Unveils Proposed FY 2026 Balanced Budget Focused on Efficiency and Public Safety
Standing alongside department directors and public safety chiefs, Mayor John Whitmire today announced details of his proposed FY 2026 balanced budget, outlining a plan to streamline municipal government and establish a more sustainable financial future for the City of Houston.
Mayor Whitmire emphasized that the budget marks a new chapter for Houston, built on principles of fiscal responsibility, service delivery reform, and a commitment to restoring public trust in local government.
The proposed budget for all city funds, excluding transfers, totals $7 billion. Notably, the proposed General Fund budget of $3.03 billion for FY 2026 reflects a decrease in spending of $74.5 million, or 2.4 percent, compared to the FY 2025 Current Budget of $3.11 billion.
The Mayor attributed this decrease primarily to the implementation of the Voluntary Municipal Employee Retirement Payout Option, citywide category management, organizational restructuring, and other key efficiency initiatives recommended by the Citywide Efficiency Study.
The proposed budget includes an increase to budgeted base pay of 3.5 percent for municipal employees and 10 percent for police officers, related to meet-and-confer agreements.
Public safety remains a top priority in the proposed budget, representing $1.8 billion, or 71.5 percent of the total General Fund spending (excluding debt service and PAYGO). This significant allocation includes funding for five police cadet classes and nine fire cadet classes. The budget also aims to consolidate department functions without compromising services to Houston residents.
“This is a special day for me as a public servant to do what Houstonians deserve: to be transparent and tell them we have done everything we can to provide city services through efficiency, eliminating waste, duplication, conflicts of interest, and corruption,” said Mayor Whitmire, underscoring that his budget departs from the previous model of city government.
Vice Mayor Amy Peck, Council Member Sallie Alcorn, and Council Member Letitia Plummer joined Mayor Whitmire for the budget announcement. Starting Wednesday, May 7, the Houston City Council will commence its review of the administration’s FY 2026 budget during a special Budget and Fiscal Affairs (BFA) committee meeting. This will be followed by presentations from city department directors and a series of budget workshops to allow Houstonians to provide feedback on the proposed plan.
“We are being very transparent with citizens about meeting our challenges, but I also emphasize that we are not through. We will implement the reorganization of city government as we go forward. We will continue to collaborate with other levels of government, but we will also make sure that we listen to Houstonians. We will discuss our challenges across the city in the future,” Mayor Whitmire stated.
The new fiscal year for the City of Houston begins on July 1, 2025.
