Houston City Council Passes $7B Budget for FY 2026

The Houston City Council on Wednesday voted to pass a $7 billion budget for Fiscal Year 2026, which includes about $200 million for technology-related expenditures.

Houston Information Technology Services (HITS) will receive a large increase from the prior year, with $143 million in funds allocated to the department for equipment, software, services and personnel. That's a 39 percent increase from last year's total of $103 million.

The HITS budget is broken down as follows:

• $88 million for other services and charges
• $46 million for personnel services
• $9 million for equipment
• $938,000 for supplies

According to the budget, the department’s goal for the fiscal year is to “be a catalyst for the transformation of Houston into a digital city for all.” While HITS does plan to integrate machine learning and automation solutions, the budget specifies that leveraging existing platforms will be prioritized over the procurement of new systems.

Non-HITS technology line items received at least $55 million:

• $27 million for interfund application services
• $14 million for interfund data services
• $6 million for interfund voice services
• $2 million for interfund wireless services
• $2 million for computer equipment and software maintenance
• $2 million for court case management systems
• $1 million for application services
• $450,000 for computer info/contractor services
• $94,000 for non-capital computer equipment

Only $77,000 has been allocated for 2025-29 capital technology investments in the approved plan.

The new fiscal year begins on July 1.