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kicking myself. It won't last. I spent far too many years on City Council cringing at budget time when everyone warned of “budget shortfalls,” as in $50-$100 million budget shortfalls. Few things in public life are more painful than cutting essential services, like trimming library hours.

Property values are rising again after a post 9/11 slump. Property taxes account for 730 million or 40.5% of the general fund budget. We're paying more at the pump, which is good and bad news in Houston, where the economy is still 50% oil and gas related.

Electricity rates

The same goes for electricity rates. Bad for consumers, including the city, but good for electric franchise fees, rising dramatically to $100 million of the city's $1.65 billion general fund budget. Strong sales tax growth (24% of the budget) also helps fuel the new boom, thanks in part to more than 100,000 new Katrina residents.

Unfortunately, when we opened our doors and hearts to Katrina evacuees, we welcomed everyone, including New Orleans gangs and other criminals. Houston 's crime spike couldn't have come at a worse time with so many HPD officers retiring. Although we can never pay some officers enough for risking their lives, the police contract boosted salaries and pension benefits to the point that many officers opt to retire after 20 years.

The new budget also includes:

•  24% increase in books and library materials;
•  a healthy fund balance (projected to be $134 million, down from $152 million);
•  Police Department: $576 million;
•  Fire: $361 million;
•  More aggressive graffiti removal.

This is shaping up to be a banner fiscal year, time to restore funding and proceed with building first class police and fire departments.

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