City of Houston on track to exceed overtime budget by $72 million for 2025 fiscal year

Shannon Ryan Image
Wednesday, April 2, 2025
City of Houston on track to exceed overtime budget by $72 million
The City of Houston will perform several audits due to exceeding the overtime budget by $72 million for the 2025 fiscal year.

HOUSTON, Texas (KTRK) -- The City of Houston is paying out more overtime than ever before despite a $330 million budget deficit.

During a budget committee meeting, the City Controller's office said combined overtime for solid waste, police, and fire could exceed the city's budget by $72 million.

The city only budgeted around $65 million for overtime.

The controller's office says they'll perform several audits to determine where they can save.

"This level of overtime spending represents a significant budget challenge, but identifying the problem is the first step to solving it," Controller Chris Hollins said in a statement. "We've conducted our planned audits to enable us to move from conversations about the issue to solutions that help restore stability, strengthen services, and build long-term trust in how the City manages taxpayer dollars."

According to Hollins' office the audit will:

  • Evaluate whether internal controls and payroll procedures ensure the appropriate use and accurate payment of overtime in accordance with city policies

  • Identify the root causes behind escalating overtime and assess how it is managed across departments

  • Deliver practical, actionable recommendations to reduce unnecessary spending while maintaining service quality and compliance

"Transparent, proactive leadership will continue to guide our actions and next steps," Hollins said. "We flagged this trend only weeks ago, and we're already taking action. As the City's financial watchdog, my role requires more than calling out the problem -- it's to help fix it. That means bringing forward practical solutions that protect Houston's financial future, strengthen services, and preserve access to the resources our communities depend on."

Eyewitness News has reported extensively on the city's budget issues. The city implemented a hiring freeze in early March to help deal with it.

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