INTERIM. How Special Districts can Shore up City Budgets.

Which city budget is re-routing special district funds? Houston

Which special district funds are heading into Houston’s general fund? TIRZ funds (Tax Increment Reinvestment Zones)

What are the PROs of re-routing TIRZ funds to the general fund?

• The $19.2 million helps fill a city budget gap
• TIRZ opponetns say the districts do not pay the fair share of the City’s operating costs, this funding change restructures TIRZ funding to ensure that the disricts pay their fair share of Houston’s operating costs

What are the CONs of re-routing TIRZ funds to a city’s general fund?

• delay in TIRZ capital projects
• whether or not the TIRZ funds should be exempt from the city’s revenue cap
  • The city is treating the funds as exempt
  •  1 TIRZ says its funds fall within the cap

Houston Press | Potential Problems With Mayor Turner’s First City Budget