3,000 Houston city workers face furloughs in wake of virus
HOUSTON (AP) — A city budget deficit of $169 million that’s been exacerbated by the coronavirus pandemic will force Houston to furlough around 3,000 workers and empty its rainy day fund, which could be problematic during the upcoming hurricane season, the city’s mayor said Tuesday.
Due to the economic shut down instituted worldwide to stop the spread of the coronavirus, Houston is expected to lose about $107 million in sales tax revenue this year and the same amount in the upcoming fiscal year, which begins in July, said Mayor Sylvester Turner.
Houston, known as the energy capital of the world with more than 237,000 energy workers, is also being hit hard by the dramatic drop in oil prices due to plummeting demand from worldwide virus-related lockdowns. Thousands of energy workers in the Houston area have already been laid off or furloughed and more are expected to follow in the coming months.
“I don’t think there’s any question with the advent of COVID-19, that these are some unstable times economically for the city of Houston,” Turner said.
To close the budget gap, about 3,000 city workers will have to be furloughed for a maximum of 10 days within the upcoming fiscal year, Turner said. The city has more than 20,000 workers.
The only city workers who won’t be furloughed will be police officers, firefighters and sanitation employees.
Houston will also have to defer the five police cadet classes it had planned on holding in the upcoming fiscal year, Turner said.
The city will also have to empty its rainy day fund, which typically has about $20 million for emergency spending. This will put the city in a “precarious financial state” as officials won’t have the fund to help Houston respond if a hurricane hits, Turner said. Hurricane season starts June 1.
Houston is one of many cities across the country that are facing a budget crunch due to the coronavirus. Last week, Dallas announced it would furlough around 500 of its 13,000 workers. The National League of Cities has said that up to 1 million public sector workers around the country face layoffs.
Turner and other mayors around the country have called on Congress to allocate additional funding to help cities during the pandemic.
Turner also announced Monday that starting next week, city council meetings would be held virtually. The change comes after one of the city’s council members, Letitia Plummer, tested positive for COVID-19.
Texas has more than 39,800 cases and at least 1,100 deaths related to the virus. The true numbers are likely higher because many people have not been tested and studies suggest people can be infected and not feel sick.
For most people, the coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.
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