FY2027 Budget Proposal
Houston’s Plan for a Stronger, More Stable Budget
“Houston is at a turning point. Our city continues to grow rapidly, and the cost of delivering essential services - from public safety to infrastructure - has risen alongside it. At the same time, local- and state‑imposed property tax caps have significantly limited the City’s ability to keep up with these demands. Under my administration, we’ve tightened our belt, improved efficiency, and, in the FY2026 Adopted Budget, even reduced year‑over‑year spending for the first time in decades. But efficiency alone is no longer enough. This year’s budget introduces a modern, sustainable approach to funding core services, protecting the programs Houstonians rely on - without raising the property tax rate. This budget represents the next step towards ensuring Houston remains strong, reliable and ready for the future.”
-- Mayor John Whitmire
What's Changing in FY27
Houston is updating how it funds core services to create a more stable, sustainable financial foundation - without raising property taxes. These changes align Houston with national best practices, reflect the real cost of delivering services, and help ensure long‑term fiscal stability.
- Modernizing Solid Waste Funding
- A $5/month administrative fee will support a modern solid waste system for Houston. This is a use-based fee - not a tax - and will be implemented alongside service improvements that are already underway, including new trucks and more reliable services.
- Why this matters:
- Brings Houston in line with other major U.S. cities
- Creates dedicated, stable funding for trash services
- Reduces pressure on the property tax rate
- Right‑of‑Way Rental Fee for Utilities
- Houston will implement a 5% rental fee on utility gross revenues, generating an estimated $100 million per year. This is a simple, standard practice: when a utility uses public streets to operate, it compensates the City - just as businesses already do when they use street space for things like valet lanes.
- Why this matters:
- Transparent accounting of impacts to public streets - not a new cost
- Consistent with what other utilities already pay (e.g., CenterPoint, AT&T, Comcast)
- Helps fund core services without raising the property tax rate
Contact City Hall
City Hall901 Bagby, Second Floor
Houston, TX 77002
