Controller Chris Hollins
The city of Houston is expected to spend twice as much as it budgeted on overtime this year, contributing to next year’s projected $330 million deficit, the city controller’s office said Tuesday.
Overtime costs for Houston police, fire and solid waste departments alone will collectively reach a 10-year high, Deputy City Controller Will Jones told City Council’s budget committee.
The city budgeted $65 million in overtime across all departments this year. The controller’s office now projects the city will spend approximately $137 million on overtime by the end of the fiscal year on June 30.
“There’s nobody that can look at this presentation and not think we better change the way we’re doing things,” said At-Large Councilmember Sallie Alcorn, who chairs the budget committee.
In its report to the council committee, the controller’s office highlighted the police, fire and solid waste departments as the largest contributors to the overtime budget. They regularly have exceeded their overtime budgets for the past decade, and the gaps between budgeted and actual overtime expenses are widening as the departments retain more employees at higher costs, Jones said.
The controller’s overtime projections do not include costs incurred during last year’s derecho and Hurricane Beryl. Those costs will be added if the city is not reimbursed with federal disaster funding, Jones said.
City Council will receive Mayor John Whitmire’s budget proposal for fiscal 2026 in early May, and council members stressed Tuesday they no longer want to allocate millions to overtime pay without addressing why so much is needed.
City departments previously covered part of their overtime costs with money budgeted for jobs that remained unfilled. As the city tries to incentivize the retention of new hires through sign-on bonuses and base-pay increases, the goal is to need less overtime because departments will be adequately staffed, Jones said.
So far, the plan has not had the desired effect.
Among the controller office’s findings:
- Solid Waste employees who have earned overtime this year have averaged an additional $13,000 in pay. The top 10 overtime earners are expected to see their pay increase 90 percent this year.
- The top overtime earners at the Houston Police Department are projected to boost their pay by 120 percent through overtime. Those who have earned overtime this year have increased their pay by an average of $8,000.
- Houston Fire Department employees who have earned overtime have seen their pay increase by an average of $17,000. The top overtime earners are projected to boost their salaries by 230 percent.
As salaries increase, so do hourly overtime rates. Firefighters, for example, received a 10 percent base pay increase this year following approval of a new contract with the firefighters union.
The Houston Police Officers Union currently is in negotiations with the administration over a new contract, which could increase salaries and subsequent overtime costs. Whitmire has said he hopes to make department salaries more competitive with others in the state.
The firefighters put out a sharply worded press release that disputed Controller Hollins’ findings, which neither of the stories that I read noted or quoted from. Make of that what you will. I mean, of course these departments have the highest overtime costs – they’re also by far the biggest part of the overall budget. There are ways to reduce overtime costs, but at least some of them involve either paying for more employees or cutting services. While the costs this year are higher than before, the basic issue that we spend a lot on overtime – and let’s be real, a lot of that has always been with the firefighters, as past reviews have concluded – is one that existed well before this year. It’s still on Mayor Whitmire to address.
Well, and Controller Hollins, too. From the inbox:
To address this, the Controller’s Office will initiate a targeted audit of overtime practices and budget execution within the Solid Waste, Police, and Fire departments. This work is part of the broader FY25 Audit Plan, which was released in early March.
The audit will:
- Evaluate whether internal controls and payroll procedures ensure the appropriate use and accurate payment of overtime in accordance with City policies
- Identify the root causes behind escalating overtime and assess how it is managed across departments
- Deliver practical, actionable recommendations to reduce unnecessary spending while maintaining service quality and compliance
“Transparent, proactive leadership will continue to guide our actions and next steps,” Hollins said. “We flagged this trend only weeks ago, and we’re already taking action. As the City’s financial watchdog, my role requires more than calling out the problem—it’s to help fix it. That means bringing forward practical solutions that protect Houston’s financial future, strengthen services, and preserve access to the resources our communities depend on.”
If there’s one thing we have a lot of right now, it’s audits and efficiency studies. As with the others, I hope this is helpful but I do not expect there to be enough potential savings to offset the need for more revenue. The Chron has more.
Does that mean, if I earn $50,000 as a police officer, top earners earn 230% of their salary, or $115,000, for total yearly earnings of $165,000?
Hope I am understanding the article correctly.
My son is interested in applying to HPD and this is super appealing to know you have some great options if you are willing to work hard!