Houston City Council voted to approve Mayor Sylvester Turner's proposed $5.1 billion FY 2022 operating budget.

The budget prioritizes city services, includes funding for police and fire cadet classes, a commitment to improving neighborhoods, addresses homelessness and encampments, and increases the response to illegal dumping.

"It is a balanced budget, and we are still meeting the priorities of this city," Mayor Turner said. "We are increasing the number of police officers, addressing police reforms, and we are providing core services."

The budget also includes an 18 percent pay raise over three years for Houston firefighters.

Like most states and local governments across the nation, the City of Houston faced a record revenue loss due to the COVID-19 pandemic. In FY 2020, FY 2021, and a portion of FY 2022 alone, the city estimated cumulative revenue losses of $178 million.

"Sales tax is one of our hardest-hit sources with an expected $113 million cumulative loss for those fiscal years. Additionally, we are projecting $65 million in revenue losses from other sources such as Charges for Services, Parking Revenues, Mixed Beverage Tax, and others," said Mayor Turner at the time he rolled out the budget proposal.

Due to COVID-19 and the city's existing property tax revenue cap, the loss of revenue created a $201 million budget shortfall in the General Fund – the largest deficit in recent city history.

"Thankfully, the American Rescue Plan Act (ARPA), signed into law by President Joe Biden on March 11, 2021, will provide the City with much-needed relief," said Mayor Turner.