Gov. Greg Abbott announced Oct. 9 the distribution of $50 million in funds to communities in Southeast Texas to help with recovery from Hurricane Beryl and a May derecho, both of which caused extensive damage in the city of Houston.
The award came as Houston leaders were debating raising the city's property tax rate to help with recovery efforts. On Oct. 9, Houston Mayor John Whitmire said the award from the state will cover the cost of debris removal in the city, prompting members of Houston City Council to pursue a lower tax rate of the two options being considered.
How it happened
City officials have been locked in conversation since early September on how to cover the $40 million price tag associated with the two natural disasters, which happened two months apart from each other.
During a Budget and Fiscal Affairs Committee on Sept. 9, Finance Director Melissa Dubowski said the city would need to raise its property tax rate by at least $0.032 per $100 valuation to cover the cost from the two storms. Houston City Council members debated raising the property tax rate for fiscal year 2024-25 during several follow-up meetings.
The Oct. 9 council meeting agenda included two separate items for different tax rate options for council members to choose from.
- Whitmire suggested keeping the tax rate the same as last year at $0.51919 per $100 valuation.
- An alternative option called for increasing the rate by $0.032 to $0.5516 per $100 valuation.
The alternative proposal was submitted through the city's Proposition A committee with support from council members Letitia Plummer, Joaquin Martinez, Mario Castillo and Sallie Alcorn. The increased rate would have covered the entire potential $40 million cost from Beryl and the derecho.
However, after hearing about the $50 million in state emergency funding, Alcorn withdrew the proposal to raise taxes.
A quick note
According to Gov. Greg Abbott’s office, the $50 million is a part of emergency funding available in the state’s General Revenue Account 549.
Account 549, according to the governor's letter, is the Waste Management Account, which is used for previous and current debris removal costs and similar activities, such as road repairs, equipment replacement and emergency protective measures.
The funds will be administered by the Texas Division of Emergency Management with assistance from the Texas Commission on Environmental Quality. Aside from Houston, the funds will be distributed across 122 counties, including Harris, Fort Bend and Montgomery Counties.
Stay tuned
Council members voted unanimously Oct. 9 to place the proposed tax rate of $0.51919 per $100 valuation on the Oct. 16 agenda.
The proposed rate is the same as last year. A public hearing will take place during the Oct. 16 council meeting, and council has until Oct. 28 to adopt a new rate.
