Every other major Texas city stacks four revenue streams into its General Fund. Houston stacks one. That's why the FY27 budget reaches for new fees instead of the lever already on the table.
Revenue Mono-Culture
The key facts
1 vs 4
Revenue streams in Houston's General Fund vs. San Antonio, Dallas, Austin, El Paso, Fort Worth (all four)
$2.9B
Property tax revenue Houston has chosen not to collect since the 2015 cap — by cutting the rate, not because of the cap itself
$200M
Property tax revenue redirected from General Fund to TIRZs each year (Bill King estimate) — largely serving above-median-income neighborhoods
$0.5192
Houston's General Fund property tax rate per $100. The only revenue stream the General Fund has. (San Antonio adds garbage + water + utility transfers on top.)
What this means for your household
Texas state law caps Houston's property tax revenue growth at 4.5% (or inflation + population, whichever is lower). That's a real constraint — but it caps growth, not the rate itself.
On top of the state cap, Houston voters approved a charter amendment in 2004 (Prop 1/H) tightening the local cap further. Houston is uniquely constrained.
Houston is also unique in NOT charging dedicated garbage fees or transferring utility revenue into the General Fund — both standard in every peer Texas city.
The result: when the General Fund needs money, the available levers are (a) raise property tax to the cap, (b) sunset TIRZs that divert tax base away, or (c) add new fees. The FY27 plan chose (c).
“
General Fund in Houston is only ad valorem, sales, and franchise/misc. fees. While being the largest city in Texas, Houston's growth does not match its functional tax rate. Creates compression in the General Fund.
— Stephen David, Mayor's Chief Operations Officer (May 11 SNA presentation)
What you can do
1
Understand the choice being made
The Mayor's framing is ‘no property tax increase.’ The honest framing is ‘no property tax increase, plus regressive fees in place of it.’ Both are policy choices.
2
Watch the expiring TIRZs
Eastside FY27, Old Sixth Ward FY28, Memorial City FY29. Sunsetting any of these returns recurring revenue to the General Fund — without raising rates or fees.
3
Demand transparency on tradeoffs
If ‘no property tax increase’ means regressive fees that hit low-income households harder, voters deserve that comparison made explicit — not buried in the framing.
Sources: Mayor's COO Stephen David presentation to Super Neighborhood Alliance (May 11); BFA hearing May 6; Bill King Chronicle (May 8); Baker Institute property tax brief.