Mayor Turner Rolls Out 2018 Budget, Anticipates Legislative Approval Of Houston's Pension Plan

HOUSTON, TX — Houston Mayor Sylvester Turner can see a light at the end of the pension reform tunnel.

Last week, the state senate passed Turner’s pension reform plan that is designed to eliminate $8.1 billion in unfunded pension liability within 30 years, reduces benefits avoiding more than $2.5 billion in future costs, and will include the issuance of at least $1 billion in bonds.

Turner presented his pension plan to the state legislature in January, and warned last month that failure to pass the pension reform plan would result in as many as 2,200 layoffs.

The senate passed the plan 25-5 during a vote on May 2, and the house was poised to vote on the measure on May 6, but the vote was postponed.

House leaders amended the senate provisions and voted 112-28 in favor of the plan.

Read Also: Houston’s Pension Reform Plan Gets Senate Approval

(Want to get daily updates about news and other events going on in your area? Sign up for the free Houston Patch morning newsletter.)

However, the bill will require another vote in the House, followed by reconciliation in conference committee.

The affirmative vote is a victory that could spell relief, with Turner rolling out his plan to close a massive $123 million deficit for fiscal year 2018.

Turner unveiled his 2018 budget at Houston City Hall Tuesday.

The $2.38 billion general fund budget, which is up about $35 million from fiscal year 2017, will increase property taxes by .6 percent and sales taxes by one percent.

There will also be some reductions in the form of attrition in about 23 departments, a reduction in overtime hours, and layoffs for about 10 personnel.

Turner called his budget plan a bare bones conservative fiscally sound budget that deals with the priorities of running a city the size of Houston.

However, the budget plan is predicated in the passage of the pension reform bill in the House, which Turner said he is optimistic will happen.

The city council is expected to begin looking at Turner’s budget plan this month.

Image: Shutterstock

Follow Us On Facebook: Engage with your neighbors in the Metro Houston area and keep up with the talk of the day by liking one of our Facebook pages. Houston Humble-Kingwood Conroe-Montgomery County Sugar Land Pasadena The Woodlands Clear Lake