January 15, 2003

City of Houston Faces Layoffs

Houston Mayor Lee Brown reported on Wednesday that the City of Houston is facing a budget shortfall of between $28 million and $39 million for Fiscal Year 2003, which will force the city council to consider layoffs, furloughs, a hiring freeze and reductions in city services.

Brown blames the shortfall on inaccurate projections in sales tax and ad valorem tax revenues.

“This is not just a Houston problem," Brown said at a news conference.  "This is a national problem.”

Brown said the budget crunch is expected to continue through the next year as well, with a shortfall of between $21 million and $29 million in FY 2004.

He referred the matter to the city council budget committee for consideration.