Officials at odds over budget hearing
Controller protests delay of presentation on settlement impact
As the $1.5 billion firefighters’ settlement continues to stir tension at City Hall, Houston’s top two elected officials are at odds over the timing of a presentation about its financial impact.
Less than two weeks ahead of the budget season, Controller Chris Hollins, Houston’s financial watchdog, protested the cancellation of an upcoming Budget and Fiscal Affairs Committee hearing where he was set to discuss what the agreement means for city finances.
“This information is timesensitive,” Hollins said to the Chronicle. “They’re going to have to make important decisions around the settlement in days to come, so we can’t wait for weeks and weeks at a time to share this information.”
Mayor John Whitmire, in response, said he wanted Council Member Sallie Alcorn, chair of the budget committee, to be present at these meetings, but Alcorn is traveling and unable to attend the one scheduled for next Monday.
“I respect the city controller’s role in informing council committees on financial matters. I also respect the committee structure, and I believe the chair should be present for important discussions such as this,” Whitmire said to the Chronicle.
The mayor added his main priority over the weekend would be focusing on “the victims of the flooding in Kingwood and the first responders rescuing them.”
Whitmire announced in March that his administration had reached an agreement with
the firefighters union, resolving a bitter contract dispute that had dominated municipal politics since 2017.
‘Disappointing’
Council members and city officials, including Hollins, have closely scrutinized the settlement, which city officials say includes $650 million in back pay, salary increases of up to 34% and potentially an additional $10 million per year for special incentives. The financial strain is expected to last for decades, as the city plans to use a judgment bond to spread the cost of the back pay.
Hollins initially sought to discuss his analysis of the deal at a joint budget and labor committees meeting earlier this week.
He said he had informed Alcorn of his intention during a call last week. When Hollins tried to submit his presentation the day before the meeting, however, Alcorn’s office told him it was too late to modify the agenda, citing the Texas Open Meetings Act, which mandates that the city posts meeting details at least 72 hours in advance.
They agreed to schedule another budget meeting the following Monday for Hollins’ presentation, according to the controller. But Alcorn later informed him the meeting had been canceled.
“After the meeting was agreed to and publicly announced, to hear that it was canceled without any explanation is certainly disappointing,” Hollins said.
Tumultuous moment
In a Thursday memo to City Council, Hollins informed members of the committee meeting’s cancellation and announced he would publicize his findings at a public briefing Monday morning instead.
Alcorn, who is on vacation, could not be reached for comment.
In recent weeks, tempers have flared at City Hall over the firefighters’ agreement, with some council members questioning whether the city negotiated effectively for the union to make meaningful concessions and if Houston can cover the substantial costs.
Marty Lancton, president of the firefighters union, has defended the agreement, saying his side “gave up a tremendous amount in order to get this done.” He also repeatedly said Houston’s budget could have taken an even larger immediate hit if the two sides had gone to trial.
Details of the agreement are still being finalized by the city and the union, according to Lancton and City Attorney Arturo Michel. Although the Whitmire administration has disclosed the top-line numbers in the agreement, neither Hollins nor City Council members have yet received a copy of the proposed settlement.
Digging into data
Based on publicly available information, Hollins recently projected a budget shortfall of $230 to $280 million for the upcoming fiscal year beginning in July. This projection does not account for the potential additional $100 million in costs next year after an April court ruling concerning the city’s drainage system.
The controller’s latest analysis, now set to be presented during a Monday press conference, will delve deeper into the deal’s financial implications, Hollins said. It will outline, for example, what firefighters’ salaries will look like over the next five years, how their pay compares to that in other large Texas metros and what the deal will mean for an average Houston firefighter.
“It is not my job to make a determination of the fairness of the settlement, but what I can do is help council and the public to understand what these financial terms truly mean for Houston,” Hollins said.