Mayor Whitmire works to close $209 million gap
For weeks, financial leaders said the city faced its largest-ever budget deficit. On Tuesday, information provided by the mayor's office showed the deficit was $209 million.
To close it, Mayor Whitmire unveiled his latest budget proposal, which his office said closed the deficit to $25 million. To make up the difference, Whitmire said he didn't look towards higher property taxes.
"Property taxes are not even in my thoughts," Whitmire said.
Instead, he said he relied on creating new fees for trash and right-of-way rentals.
Between the two fees, Whitmire said the city will generate nearly $130 million.
"My only question is, why didn't the city of Houston do this a long time ago? I mean, it's just a practical solution," Whitmire said.
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Whitmire said that if approved, neighbors living in single-family homes will pay $5 a month for trash, unless their HOA opts for a private service.
"State law says you cannot provide a utility, which solid waste is becoming, without a charge," Whitmire said. "It could've been $2, but we went for the very minimum of $5."
No matter your income or age, Whitmire said you'd have to pay the $5 a month fee. "That'll be part of the discussion if we go above $5," Whitmire explained. "The $5 is lower than the exemptions of all our large cities."
For days, we heard the fee could climb to $25 a month by 2031. On Tuesday, Whitmire said that may not be the case.
"It's conceivable, if we're smart, we may never have to raise it," Whitmire said.
If approved, Whitmire said the fee would generate $24 million a year.
'Going to get better': Officials vow trash service would improve
According to 311 data, missed trash pickup is the top complaint over the last 12 months, with nearly 40,000. A number that's only gotten worse.
The year before, data shows that missed trash pickup was the second-largest complaint, with about 36,000 calls for service. Public works director Randy Macchi said if the new garbage fee is imposed, those numbers will improve.
"The promise is this: it's going to get better,' Macchi said. "I can absolutely and assuredly say that. You're not going to see the same solid waste operation a year from now that you see today."
Baker Institute fellow Bill King told ABC13 last week that a trash fee could prompt people to seek a private garbage service. If that happens, King said it could worsen the city's services.
"As more and more people leave the city, the service is going to get worse because it's less efficient to pick up fewer homes," King explained. "Those neighborhoods are going to be stuck with crummy city of Houston garbage pick up service and still have to pay for it."
Macchi doesn't see it that way.
"I could make the argument just the opposite way," Macchi said. "If we had fewer customers, maybe it's easier to pick up more trash at the same time."
The majority of the budget remains on public safety
The mayor's office said the majority of the general fund in the proposed budget would go towards police and fire. Last year, it was about 70 percent.
This year, it would be 75%. In all, the police and fire department, the mayor's office said, would make up $2 billion of the $3.16 billion general fund.
Last week, the council budget committee was told by financial leaders that public safety spending, especially the Houston Fire Department, was far more than they had budgeted for.
The controller's office said it ballooned by an extra $75 million. On Tuesday, we asked Whitmire what had been done to address the increased spending.
"We're doing in this budget what we believe is a better projection based on today's environment and the need for first responders," Whitmire explained.
The mayor's office also said they made changes after projected savings from last year didn't materialize. Last year, the council approved spending $4 million on a contract to create a tool to help save money on contracts.
Last week, the city's chief procurement officer told council members they thought the deal would save them $17.5 million. He told council members they only saved $300,000.
On Tuesday, ABC13's Nick Natario asked Whitmire about it. "It's an inexact science," Whitmire said. "The critics who want to raise those issues that you're doing. What's their plan?"
Here's how the budget process will work
The mayor laid out his proposal on Tuesday, but it won't be voted on for several weeks. There will be committee hearings on it, starting on Wednesday.
Council Member Sallie Alcorn said there will be two budget town halls. The first will take place on Saturday, May 16, at 10 a.m. at the Fondé Community Center, 110 Sabine Street, 77007. The second will be virtual on Wednesday, May 20, at 6 p.m.
You can also address the council at its weekly meetings during public session. On Tuesday, some neighbors did just that.
"The poorest families in Houston will now face an additional burden of a $5 monthly trash fee with no equity or affordability provisions," one person said.
Council is expected to vote on the budget at its June 3 meeting.
SEE ALSO: Rice researchers found Houstonians support a trash fee, and expect better service with it