Houston’s mayor says the city is “broke” after spending too much for decades.
Democrat John Whitmire, elected in December, gave the grim warning at a City Hill meeting this week, where he proposed a five percent cut in all city spending to ease the cash flow problem.
“I think we can all agree that we are bankrupt,” Whitmire said, before proposing the planned cuts.
‘This gives us the opportunity to discuss the financial picture of this city. It’s broken! It was broken when I got here,’ he said.
America’s fourth-largest city is spending more money than it takes in, leaving it with a $160 million deficit, according to FOX 26 Houston.
‘We’re broke!’ Houston Mayor John Whitmire, who took office in January, issued the warning this week at City Hall.
Experts say the problem has been around for years, but COVID donations from the federal government helped mask it.
“COVID really silenced the conversation because we received 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 century ago, with pension funds.” John Diamond, director of the Center for Public Finance at Rice University, he told KTRK.
Former Mayor Sylvester Turner, who just left office in January and presided throughout the pandemic, falsely claimed he was leaving the city with a $420 million surplus.
“The budget surplus is largely due to $1 billion in federal recovery funds Houston received during the pandemic, which Turner has primarily used to cover the city’s expenses while increasing its reserve account,” he wrote. he Houston Chronicle.
During his tenure, Turner, who was unable to 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 tell you, the sky is not falling,” Turner said. he told the local newspaper last year.
Sylvester Turner, who previously led Houston, served two terms and was unable to run again.
Houston’s cash flow problem is so bad that some firefighters are still waiting for their pensions and back pay to be recovered (file image)
A 5% across-the-board cut to city services has been proposed, but it will not affect fire and police services.
But local critics insist Turner was not telling the truth.
“This has been obvious to anyone who has followed the city’s finances for more than a decade,” columnist and businessman Bill King told local station Fox.
“The you-know-what would have been a blow to the last administration if it hadn’t been for this incredible influx of federal dollars.”
A tax increase through a bond is expected in November.
“This is very likely what we’re seeing, going to voters this November and saying, ‘Here’s the plan, here’s what it’s going to cost, and we’re asking you to contribute,'” said City Comptroller Chris Hollins.
The city has been fighting to make firefighters whole, from meeting their contractual obligation to their pension, to paying back wages and pay increases that were promised years ago.
Whitmire’s plan to settle with first responders will cost taxpayers 650 million dollars for the next five years.
“I don’t like a five percent cut now, but you have to make tough decisions, and people put me in this position to make tough decisions, and I’m going to do my job,” Whitmire said.
The city also donated part of its revenue to the public transportation system in the 1970s.
“They spent $3 billion on a light rail system that works terribly,” King explained.
Houston Fire Department EMS medics carry 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 residents by 2100, if current demographic trends continue.
MoveBuddha projected what the top ten cities in the United States 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, known for not having a state income tax, experienced a surplus of almost 33 billion dollars last year, more than the South Carolina state budget.
Much of this is due to the hordes of people moving to Texas, and projections say Dallas could overtake New York as the country’s most populous city by the year 2100.
If demographic trends hold, Houston would replace Los Angeles as the second largest city in the United States.
Despite all the newcomers, local leaders have not been able to take advantage of the newcomers, like other cities and towns.
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 country.
Critics say the city should not stop taxing residents when it can raise the money, but rather reduce the city’s internal expenses and sell off an expensive city-owned art collection.
“The first thing we have to do is find where the money is first, as opposed to the typical liberal response to every problem: raise taxes on the people,” suggested conservative political analyst Gary Polland.
One idea is to charge for services like garbage collection, which are currently free.