In response to results from an efficiency audit, Houston Mayor John Whitmire has implemented a hiring freeze to focus on streamlining city operations and address ongoing budget concerns.
The hiring freeze for Houston city employees took effect Monday.
A 221-page efficiency study by the accounting firm Ernst & Young uncovered significant issues in the city’s budget.
Among the most significant concerns: approximately 80 percent of the city’s contracts are held by the same top vendors. In some cases, departments use the same vendor for multiple projects, while others rely on multiple vendors for a single project. The audit also found that many city employees have purchasing cards that function similarly to corporate credit cards, leading to frequent split purchases to stay “within budget” and purchases unrelated to government duties such as dining out and travel.
Additionally, about 42 percent of city managers oversee only one to three employees. The city also created career pathways that resulted in management positions with no one to supervise. The audit further revealed that Houston employs more people per capita than any other major city. The full audit results can be accessed here.
When the report was released, Whitmire wrote in a memo to city council members, “I believe that by acting on these findings, we can create a city government that is more transparent, efficient, and focused on delivering results. We can show Houstonians that their government works for them and that every decision we make is rooted in accountability and service.”
Last month, Houston Controller Chris Hollins highlighted a $350 million budget shortfall and warned that he would be unable to certify next year’s budget unless there were significant cuts. Hollins also highlighted the need for $100 million to improve the city’s infrastructure, stating, “It simply means that we’re going to run out of money.”
Now, less than a month after pledging to prioritize transparency and efficiency, Mayor Whitmire has implemented the hiring freeze as a step toward streamlining the city’s operations. His office explained, “The mayor believes a hiring freeze is an opportunity to cut expenses, ensuring that our personnel needs are reassessed to benefit the organization and taxpayers. Houston has many great, hardworking employees, but the efficiency study indicated that there are too many for an organization the size of the city.”
In an interview with ABC13, Whitmire pointed out that he had originally commissioned the Ernst & Young audit to identify ways to eliminate waste. He emphasized that the audit is now serving as a blueprint for necessary cuts, such as the hiring freeze, as the city works to address the $350 million budget deficit.
The mayor’s office has made it clear that the freeze will not affect the fire or police departments.
Additional recommendations from the February report are expected to be implemented in the budget for fiscal year 2026, which begins on July 1.
