Houston officials have been going back and forth on the city’s excessive overtime budget spending in its three critical departments—fire, police and solid waste—since late 2025.
What’s happening?
In early April, a financial report showed that overtime payouts for the fire and police departments were the biggest driver of the city’s projected expenditure increase, pushing over their allotted budget by roughly $50 million.
Controller Chris Hollins said the ongoing spending has pushed the city toward an approximately $174 million general fund shortfall for fiscal year 2025-26. He called it the “largest single-year drawdown in the history of the city of Houston.”
In the most recent financial report given during the April 29 City Council session and a preceding Budget and Fiscal Affairs meeting, he said that the city is continuing to add to that shortfall by still approving overtime costs—most notably for the fire department, he said.
By the numbers
During the presentation of the financial report, Hollins said the budget for the Houston Fire Department has increased by $73 million since the fiscal year 2025-26 budget was approved last June, including an additional $22 million spent this month. He said the majority of those increases went toward overtime costs.
“If just the overages in the fire department were its own department, it would be the fifth largest department in the city of Houston,” Hollins said. “That’s something that we need to take seriously. It’s larger than our library system [and] the health department.”
A presentation during the BFA meeting April 28 shows that the fire department has overspent its overtime budget in the last several fiscal years by:
- FY 2023-24: $17.2 million
- FY 2024-25: $1.8 million
As of March 31, the overtime budget for FY 2025-26 is projected not to exceed its allotted $82.6 million projection, Finance Director Melissa Dubowski said.
What they’re saying
The department's overtime needs, city officials say, are driven by minimum staffing obligations. According to the financial presentation, since FY 2023-24, the department has only seen an increase in its headcount by 168.
Mayor John Whitmire released a statement following the two meetings regarding the fire department's overtime spending and understaffing.
“The Houston Fire Department has spent the past year undergoing a comprehensive review of operations and budgeting, including overtime,” the statement read. “My administration's priority is to ensure HFD is properly funded, unlike in the previous administration. Overtime is necessary to protect both residents and guests.”
Also of note
Both the police and solid waste departments have also seen upticks in their overtime budgets in the last several years. Per the financial presentation, the police department has overspent its allotted overtime budget by:
- FY 2023-24: $18.9 million
- FY 2024-25: $6.4 million
The overtime needs are also expected to be driven by minimum staffing obligations, city officials said. The police department only saw a 4.5% increase in headcount, with roughly 3,686 personnel accounted for in FY 2023-24 and 3,854 in FY 2025-26, as of March 31.
The Solid Waste department has also seen slight increases between their budgeted overtime spending and their actual spending, with an estimated $3.1 million overspent in FY 2023-24 and $1.3 million overspent in FY 2024-25.
Moving forward
City officials are expected to release the FY 2026-27 fiscal year budget May 5, with department budget workshops to follow throughout the month of May. The solid waste and fire departments will present their budgets May 18, with the police department allotted for May 19.
Residents are also invited to give feedback on the upcoming budget and weigh in on what should be prioritized in the next fiscal year through a survey launched by the city council in mid-April.
The FY 2026-27 fiscal year is set to begin July 1, with City Council expected to vote on the budget by June 3.
