City leaders say budget shortfall jumps from $25M to $88M after not raising property taxes in 2026

HOUSTON, Texas (KTRK) -- Houston will not raise property taxes this year, even as city leaders revealed this week that its budget deficit has grown to $88 million, according to Mayor John Whitmire.

It was originally expected to be at $25 million.

"The bottom line is we're not raising taxes," Mayor John Whitmire said.

Councilwoman Amy Peck said the larger-than-expected deficit is because the city received less in property taxes than anticipated.

"There's been more property tax protests," said Peck.

Peck said those numbers tend to be consistent year to year.

"I think it was a big surprise," Peck said upon learning of this year's property-tax revenue.

Despite the shortfall, Peck said she supports holding the tax rate steady.

Whitmire said the city plans to close the gap by cutting wasteful spending, becoming more efficient and fighting what he described as corruption.

Whitmire did acknowledge there could come a point when the city would have no choice but to raise taxes.

"We're not going to raise taxes until we can illustrate we've done everything possible," Whitmire said.

City Controller Chris Hollins said his office warned that the mayor's administration has overestimated property tax revenue for the past two years.

Hollins said the growing deficit will force the city to dip into its reserves.

"Once again, the administration appears prepared to raid the city's savings account to cover operating costs," Hollins said in a statement. "That's not a sustainable solution."

The vote to keep the city's tax rate the same was unanimous among city council members.