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08/27/2025

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LAWIN.news

Houston cuts deficit as 700+ employees accept buyout offers

by LAWIN.news April 10, 2025
written by LAWIN.news April 10, 2025
Photo credit: Houston Landing
119

HOUSTON, Texas– More than 700 employees from the city of Houston will retire on May 1 after accepting voluntary buyouts, city officials announced on Thursday.

The buyouts will require the city to refill many positions, but officials from the Whitmire administration anticipate saving over $26 million annually in general fund dollars and $48 million in total due to the reduced workforce.

These savings could potentially reach $189 million if all 3,000 eligible civilian employees opt for the buyouts, according to a presentation by the mayor’s deputy chief of staff and finance director.

Despite these measures, the savings will not fully address the anticipated $330 million budget shortfall in the fiscal year starting July 1, according to Steven David, the mayor’s deputy chief of staff.

The city typically experiences about 400 retirements per year, David noted during a Thursday committee meeting with City Council members.

David stated that drastic changes in city operations would be necessary given the unprecedented budget deficit.

Following an efficiency study on city operations, the administration decided to offer buyouts and implement a hiring freeze for all departments except police and fire.

Mayor John Whitmire extended a buyout offer on March 14 to approximately 3,000 employees eligible for retirement.

Employees who accept will retire in the usual manner, receiving an additional lump sum payment of 25% of their annual salary and an extension of existing benefits for up to five years.

Of the employees eligible for retirement, 15% hold supervisory positions.

A main concern for department directors is the potential disruption of city services, but the extended buyout timeline allows them to adjust their plans accordingly.

Employees have until April 28 to decide on the buyout offer.

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