On May 19, 2025, the Houston Mayor's Office held a budget workshop to discuss the proposed fiscal year 2026 budget, highlighting key areas of focus including tourism, cable television, and economic development. The meeting revealed a net increase of 1.3% in the mayor's general fund budget, primarily driven by growth in tourism and a slight decrease in cable television revenues.

The proposed budget for the mayor's office stands at $8.13 million, with personnel costs comprising 59% of general fund expenditures. Notably, the tourism fund is set to increase by approximately $1.7 million, reflecting Houston's growing appeal as a travel destination. This increase is based on projections from Houston First, which anticipates higher hotel occupancy rates in the Central Business District, thereby boosting hotel occupancy tax (HOT) revenues.

The budget also allocates funds for cultural affairs, including contracts with the Houston Arts Alliance, which receives 93% of HOT revenues. This funding is crucial for supporting local arts and cultural events, particularly when sponsorships fall short. The mayor's office emphasized the importance of these funds in fostering community engagement and enhancing the city's cultural landscape.

In terms of economic development, the budget workshop discussed the oversight of various initiatives, including the management of tax increment reinvestment zones (TIRZ) and the implementation of a digital kiosk program aimed at generating additional revenue. The city is also undergoing an efficiency analysis with Ernst and Young to improve financial practices within these zones.

The meeting concluded with discussions on the future of the Mayor's Office of Cultural Affairs (MOCA), which has seen a reduction in full-time employees from four to two. The mayor's office is focused on addressing outstanding invoices and improving operational efficiency to better support the local arts community.

Overall, the budget workshop underscored Houston's commitment to enhancing its cultural offerings and economic development while navigating the challenges posed by changing revenue streams in cable television and tourism. The proposed budget reflects a strategic approach to fostering growth and ensuring the city's vibrancy in the coming fiscal year.