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A $50 million lifeline from the state for disaster debris cleanup has thwarted a potential tax hike in Houston after Mayor John Whitmire and several council members brought forward two competing tax proposals.
But the city could remain at risk financially as there are no guarantees how the state will divide the windfall, potentially leaving its budget hole unpatched.
Whitmire proposed the city’s tax rate should remain the same at just under 52 cents per $100 of a home’s assessed value. But Council Members Sallie Alcorn, Joaquin Martinez, Letitia Plummer and Mario Castillo put forth a proposal under Proposition A that would have raised the rate by just under 6% to 55 cents per $100 of assessed value to help with disaster recovery.