Bellaire - Meyerland - West University | October 2023

Houston’s next mayor to face budget, planning decisions From the cover BY SHAWN ARRAJJ & LEAH FOREMAN

Several representatives of community groups in the Meyerland and Brays Bayou areas spoke in interviews with Community Impact about what they view as top issues facing the city that they would like the next mayor to tackle.

What they're saying

Two-minute impact

Turner’s successor will have roughly six months after the election before significant budget decisions must be made, Houston Controller Chris Brown said. When Turner entered office, he faced a $160 million budget hole, and he will leave with a $400 million surplus. However, Brown said Turner has balanced several budgets with one-time funding sources, including federal coronavirus relief funding from programs such as the American Rescue Plan Act. “The challenge with using one-time financing sources to shore up a budget gap is they are exactly that: they’re one-time,” Brown said. “So you find that you’ll have that money this year, but then you’ve got to figure out what happens the following year.” In 2016, the estimated structural deficit was $150 million. It rose to an estimated $300 million in 2023, Brown said. In public statements, Turner has pointed to the city’s general fund reserve of more than $400 million as an asset for the next mayor. The general fund reserves function as a piggy bank. By city charter they must never fall below 7.5% of the general fund expenditures, minus debt service, or roughly $220 million in fiscal year 2023-24. Brown estimated the city will need to lay off 3,000 employees by FY 2025-26. The city of Houston did not respond to requests for comment. However, Brown applauded Turner’s work to lower the city’s unfunded pension liability—the difference between the estimated cost of future benefits and the assets set aside to pay for them—which decreased from about $8.2 billion to around $2 billion.

“I would like to see a greater emphasis from the next mayor on subterranean [flood control] infrastructure. The surface options are extremely limited in the Brays Bayou watershed in particular, which is 99% developed.” CHARLES GOFORTH, PRESIDENT, BRAYS BAYOU ASSOCIATION

“Crime, particularly gang-related crime. … This means getting at the root causes and requires a return to neighborhood policing and openness to the idea of police substations located near areas where crime is intense.” GROUP STATEMENT FROM OFFICIALS WITH MEYERLAND SUPER NEIGHBORHOOD NO. 31

Zooming in

insight into the process, said Renee Cross, senior executive director with the University of Hous- ton’s Hobby School of Public Affairs. Two early decisions will involve transition teams and the potential naming of new department heads. Department heads Some mayoral transitions will also result in replacing department heads that could better reflect the goals and ideology of the next mayor, Cross said. 1992 mayoral transition When former Mayor Bob Lanier replaced Kathy Whitmire, many people were swept out of top positions in the city, Cross said. The two had a contentious relationship, she said. 2004 mayoral transition Historically, changes of department heads have also depended on the experience level of the incoming mayor as well as the department heads themselves, Cross said. When Bill White became mayor in 2004, his only other experience as an elected official was his time serving as party chair for the Texas Democratic Party. Someone in that situation may be more likely to rely on people who are already in place, Cross said.

Following the November election and a likely runoff election in December, Houston’s next mayor will take over in January. What happens next will largely depend on which candidate wins, but past mayoral transitions can give some Transition teams The next mayor will assemble teams of advisers to provide guidance on key issues. These teams will likely be put into place immediately and cover areas that voters have expressed concerns with, Cross said. The Hobby School surveyed 800 likely voters in July on their top priorities for the next mayor, she said.

Crime was named the top priority by 83% of respondents and will likely be a top focus early on for the next mayor, who could lean on the advice of Houston Police Department Chief Troy Finner, Cross said. Road conditions are a top priority for 65% of respondents, but poor street conditions rose to the top priority when they were asked about problems within their own communities. Economic development is a top priority for 65% of respondents, tied with road conditions. Cross said the mayor is limited in passing economic policies.

83%

65%

Houston general fund balance Although Houston’s general fund reserves have increased since 2021, the city has also used one-time federal funding to help balance its budget over that time.

65%

General fund reserves

SOURCE: UNIVERSITY OF HOUSTON HOBBY SCHOOL OF PUBLIC AFFAIRS/COMMUNITY IMPACT

$304.1M $311.9M

FY 2022-23 FY 2021-22 FY 2023-24*

$401M

What's next

ARPA funds used to balance budget

$198.6M

FY 2023-24* FY 2022-23 FY 2021-22

place an item on weekly agendas if it has support from at least two other members. “As far as weekly council operations and the ability to focus on some items that perhaps the mayor does not want to necessarily address at that time, it’s pretty major,” Cross said.

The new mayor will take on what is regarded as one of the most powerful mayoral seats in the U.S., Cross said. However, Houston voters will get the chance to approve or reject Proposition A on ballots this November, she said. Proposition A, if passed, would allow any member of the council to

$160.1M

$160M

SOURCES: CITY OF HOUSTON, HOUSTON CONTROLLER’S OFFICE/COMMUNITY IMPACT *PROJECTED

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BELLAIRE - MEYERLAND - WEST UNIVERSITY EDITION

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