Mayor's Office Press Release
Mayor Parker Releases Statement on Moody's Report
July 5, 2015 -- The good news is that Houston remains strong and resilient. Local business confidence holds firm in Houston, reflecting an economy broader and deeper than the energy sector. In fact, the metro area created 62,300 jobs in the 12 months ending in May 2015, with leisure, hospitality, health care, government and information continuing to add jobs.
Moody’s affirmation of Houston's Aa2 rating reflects our ongoing strength. Moody’s negative outlook revision that accompanied this affirmation expressly references the one-two punch of excessive pensions and artificial revenue limitations I've been fighting for the last five years.
In fiscal year 2014, fixed costs (pension, OPEB and debt) equaled about 30% of the budget. We have tried repeatedly to obtain legislative relief from our pension stress in Austin. Each time, state lawmakers have refused to help. Until the legislature acts, pension payments will continue to crowd out many of the other needs of the City. And our cap on ad valorem revenue means we struggle to meet the demands of our rapidly growing population.
-- Mayor Annise Parker