HOUSTON – Houston Controller Chris Hollins has certified Mayor John Whitmire’s proposed $7.5 billion city budget, clearing a key procedural hurdle before Houston City Council considers final approval.
But Hollins made clear that certification should not be mistaken for support.
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In a letter sent to Mayor Whitmire and City Council members, Hollins stressed that his decision was based on his legal responsibilities as controller and not an endorsement of the administration’s financial strategy.
“Certification is not a test of optimism. It is a test of certainty,” Hollins wrote.
The certification comes after weeks of debate over Whitmire’s budget proposal, which seeks to address Houston’s ongoing financial challenges through a combination of spending adjustments, a new monthly trash fee and a plan to generate more than $100 million annually through a new right-of-way fee charged to the city’s Combined Utility System, or CUS.
While certifying the budget, Hollins outlined significant concerns about the proposal, particularly the administration’s reliance on utility-related revenues to support general city operations.
“As with previous budgets, there are assumptions and projections in this budget that do not mesh with reality and will almost certainly lead to additional deficit spending,” Hollins wrote.
He specifically warned that “the administration’s planned approach to the proposed Combined Utility System right-of-way fee poses significant issues of uncertainty for the coming fiscal year’s General Fund revenues and unsustainability in future years for both the General Fund and Combined Utility System.”
Despite those concerns, Hollins concluded that the city’s finances remain strong enough to meet the legal threshold required for certification.
“However, I remain able to certify the continuing appropriation despite my misgivings because the General Fund balance will remain above zero in the downside scenarios we foresee,” he wrote.
The controller’s office argued that the proposed right-of-way fee remains uncertain because multiple approvals and financial steps have not yet been secured. Hollins noted that the city has not identified a dedicated funding source for the fee and has publicly stated that water and wastewater rates will not be increased to cover the additional expense.
He also pointed out that approvals from outside entities, including the Texas Water Development Board and potentially the Texas Attorney General’s Office, have not yet been obtained and, to his knowledge, have not been formally requested.
In one of the letter’s sharpest critiques, Hollins described the proposal as “half-baked.”
Still, Hollins emphasized that certification is a financial determination under the City Charter rather than a policy judgment.
The certification marks the latest chapter in an ongoing disagreement between Hollins and Whitmire over the city’s financial direction.
When Whitmire unveiled the budget proposal in May, he described it as a necessary step toward stabilizing Houston’s finances.
“Thank you, everyone, for being here. This is a special day,” Whitmire said during the budget presentation.
The mayor’s proposal includes a $5 monthly trash administrative fee expected to generate roughly $24 million annually, as well as the new utility right-of-way fee, which administration officials argue will modernize how the city funds services.
Finance Director Melissa Dubowski defended the utility fee proposal at the time, noting that other utilities already pay similar charges.
“Electricity, natural gas, cable TV utilities — all of those are paying the right-of-way fee already,” Dubowski said. “This is really just bringing in that last utility to modernize how we charge that fee.”
Hollins, however, has consistently questioned the administration’s assumptions and transparency surrounding the budget.
“This budget shifts costs onto working families. It hides the price tag of city services, and it puts Houston on a dangerous financial path,” Hollins said when the proposal was first introduced.
With certification now complete, council is expected to vote on the budget during Wednesday’s meeting.