Houston city officials will need to slash spending or dramatically raise revenue over the next year following a Texas Supreme Court decision on the city’s infrastructure spending.  

https://www.houstonpublicmedia.org/articles/news/city-of-houston/2025/02/05/513041/a-real-gut-punch-houston-budget-deficit-balloons-after-court-ruling-on-infrastructure-spending/

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‘A real gut punch’ — Houston budget deficit balloons after court ruling on infrastructure spending

City officials are grappling with a $100 million price tag for required spending on streets and drainage. The city now faces a $330 million deficit in 2026.

Houston Public Media
Houston council drops tax hike after Abbott sends $50 million for Beryl debris removal

After Governor Greg Abbott announced additional funds for storm recovery, including an expected $32 million for Houston, city council accepted Mayor John Whitmire’s recommendation to keep the property tax rate flat. Four members had pushed for a 6% increase. 

Houston Public Media
Houston City Council, Mayor Whitmire signal support for increased property tax rate

The City of Houston appears likely to hike its tax rate, as it faces a budget shortfall and unexpected costs from multiple disasters. One potential rate increase would cost the average homeowner $12 a month. 

Houston Public Media
City of Houston considers property tax rate hike to cover costs of Derecho, Hurricane Beryl

After years of declining property tax rates, the City of Houston is considering a variety of options to cover a budget shortfall and the costs of recent disasters. Houston has the lowest combined tax and fee rates of the major urban cities in Texas. 

Houston Public Media