Houston mayor says city is BROKE after inheriting $160 million deficit
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The Mayor of Houston says the city is ‘broke’ after overspending for decades.
Democrat John Whitmire, who was elected in December, gave the bleak warning at a City Hill meeting this week where he proposed a five percent cut across all city spending to alleviate the cash-flow problem.
‘I think we can all agree that we’re broke,’ Whitmire said, before proposing the planned cuts.
‘This gives us a chance to discuss the financial picture of this City. It is broken! It was broken when I got here, ‘ he said.
America’s fourth largest city is spending more money than it’s taking in, leaving it with a $160 million deficit, according to FOX 26 Houston.
‘We are broke!’ Houston Mayor John Whitmire, who took office in January, issued the warning this week at City Hall
Experts say the problem has existed for years, but COVID handouts from the federal government helped mask them.
‘COVID really silenced the conversation because we got so much money from the federal government that we were able to make our budgets work, but really, this problem started 20 years ago, almost a quarter of a century ago, with the pension funds,’ John Diamond, Center for Public Finance Director at Rice University, told KTRK.
Former Mayor Sylvester Turner, who just left office in January and presided during the pandemic, falsely claimed he was leaving the city with $420 million surplus.
‘The budget surplus is largely thanks to $1 billion in federal recovery funds Houston received during the pandemic, which Turner has mostly used to cover city expenses while driving up its reserve account,’ wrote the Houston Chronicle.
During his time in office, Turner who could not run again due to term limits, was criticized by former Mayor Annise Parker, financial groups and even the city comptroller for his handling of public funds.
“Let me just say, the sky is not falling,’ Turner told the local paper last year.
Sylvester Turner, who led Houston previously, served two terms in office and could not run again
Houston’s cash-flow problem is so severe some firefighters are still waiting to be made whole on pensions and backpay (file image)
A 5% across the board cut in city services has been proposed, but it will not impact fire and police service
But local critics insist Turner wasn’t telling the truth.
‘This has been obvious to anyone following the city’s finances for well over a decade,’ Columnist and businessman Bill King told the local Fox station.
‘The you-know-what would have hit the fan in the last administration had it not been for this incredible influx of federal dollars.’
A tax hike through a bond is expected in November.
‘That’s very likely what we’re looking at, going to the voters this November and saying, “Here’s the plan, here’s what it’s going to cost, and we’re asking you to chip in,”‘City Controller Chris Hollins said.
The city has been struggling to make firefighters whole, from meeting its contractual obligation to their pension, to paying backpay and wage hikes that have been promised years ago.
Whitmire’s plan to settle with the first responders will cost taxpayers $650 million for over the next five years.
‘I don’t like a five percent cut now, but you have to make tough decisions, and folks put me in this position to make tough decisions, and I’m going to do my job,’ Whitmire stated.
The city also gave away some of its revenue to the public transit system in the 70s.
‘They spent $3 billion on light rail system that is performing horribly,’ King explained.
Houston Fire Department EMS medics deliver a woman with possible Covid-19 symptoms to a Covid-19 overflow area at Memorial Herman Northeast Hospital on August 19, 2021
Houston’s population is growing and is expected to rival Tokyo’s with 31 million inhabitants by 2100, if current population trends hold
MoveBuddha projected what the top ten cities in America will be in 2100 based on current migration patterns.
H-town’s money problems come at a time when the rest of the Lone Star State is swimming in cash.
The Republican state, well-known for not having a state income tax, saw a nearly $33 billion surplus last year– more than the state budget of South Carolina.
Much of that is due to the hordes of people moving to Texas– with projections saying Dallas could overtake New York as the most populous city in the country by 2100.
If population trends hold, Houston would replace Los Angeles as the second largest city in the US.
Despite all the newcomers, local leaders haven’t been able to cash in on the new arrivals, like other cities and town.
Dallas and surrounding suburban cities are expected to be home to nearly 34 million people by the turn of the century– making it the largest city in the nation
Critics say the city should not default to taxing residents when they could raise the money but cutting the fat inside city hall and selling an expensive art collection owned by the city.
‘The first thing we need to do is find where the money is first as opposed to the typical liberal answer to every problem: raise taxes on the people,’ conservative political analyst Gary Polland suggested.
One idea is charge for services like trash collection, which are currently free.
