With federal COVID money ended, this city is forced to admit to its profligacy

Houston Mayor John Whitmire says city is 'broke' after decades of overspending

Experts say the problem has existed for years, but COVID handouts from the federal government helped mask them. 

'COVID really silenced the conversation because we got so much money from the federal government that we were able to make our budgets work, but really, this problem started 20 years ago, almost a quarter of a century ago, with the pension funds,' John Diamond, Center for Public Finance Director at Rice University, told KTRK. 

Former Mayor Sylvester Turner, who just left office in January and presided during the pandemic, falsely claimed he was leaving the city with $420 million surplus.

'The budget surplus is largely thanks to $1 billion in federal recovery funds Houston received during the pandemic, which Turner has mostly used to cover city expenses while driving up its reserve account,' wrote the Houston Chronicle.

'…. This has been obvious to anyone following the city's finances for well over a decade,' Columnist and businessman Bill King told the local Fox station.

'The you-know-what would have hit the fan in the last administration had it not been for this incredible influx of federal dollars.' 

….H-town's money problems come at a time when the rest of the Lone Star State is swimming in cash.

The Republican state, well-known for not having a state income tax, saw a nearly $33 billion surplus last year-- more than the state budget of South Carolina. [Although that state now has an extra $1.8 billion to help out — see post below]

But will the city cut spending? Are you kidding me? Houston is run by Democrats. (As is California, by the way)

A tax hike through a bond is expected in November. 

I predict we’ll see many more stories like this from other cities and states in the coming year.