Houston Faces Budget Shortfall After $650M Bond Sale for Firefighter Pay Dispute

Houston is set to sell $650 million in bonds to resolve a firefighters’ pay dispute, a move that is expected to enlarge the annual budget shortfall by up to 75%. The city will need to sell 'judgment bonds' to cover the settlement Mayor John Whitmire made with the firefighters’ union. Chris Hollins, the City Controller, has cautioned that over the 25- or 30-year obligation period, including interest and additional costs, the taxpayer's total expenditure will exceed $1 billion.