Houston Transit Could Lose a Tenth of Sales Tax Revenue

Agency officials say they will continue to make expansion plans in the face of a potentially dramatic reduction in funding.

1 minute read

August 1, 2023, 9:00 AM PDT

By Diana Ionescu @aworkoffiction


Houston Metro bus at a bus stop with bright blur cloudy sky in background

HOUExplorer / Adobe Stock

Despite a prediction that sales tax revenue in the Houston area will fall by as much as 10 percent in the next fiscal year, the region’s Metropolitan Transit Authority (Metro) says it will not let the reduced revenue impact its expansion plans, at least on paper.

As Dug Begley explains in the Houston Chronicle, “Metro bases its budget, which can hover around $1 billion for operations and capital projects annually, on predicted sales tax collections and other sources of revenue.” The prediction for next year signals an unprecedented drop in sales taxes for Metro and in the region.

But Metro Chairman Sanjay Ramabhadran “it is on us to plan.” The agency recently proposed round-the-clock service on some routes to make transit more accessible for workers with less traditional schedules. “Even if it occurs, a dip in sales taxes gives Metro time to react. The agency, which largely does not rely on fares for funding, unlike other large metro areas, has not had to slash services or find new funding when federal funds related to COVID dried up.”

Friday, July 21, 2023 in Houston Chronicle

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

7 hours ago - Diana Ionescu

Streetcar and bus stopped at station on Market Street in San Francisco with Ferry Building visible in background.

Waymo Gets Permission to Map SF’s Market Street

If allowed to operate on the traffic-restricted street, Waymo’s autonomous taxis would have a leg up over ride-hailing competitors — and counter the city’s efforts to grow bike and pedestrian on the thoroughfare.

4 hours ago - San Francisco Examiner

Parklet with wooden benches and flower boxes on street in Ireland.

Parklet Symposium Highlights the Success of Shared Spaces

Parklets got a boost during the Covid-19 pandemic, when the concept was translated to outdoor dining programs that offered restaurants a lifeline during the shutdown.

5 hours ago - Streetsblog San Francisco

Bronze statue of homeless man (Jesus) with head down and arm outstretched in front of St. Matthew Cathedral in Washington D.C.

Federal Homelessness Agency Places Entire Staff on Leave

The U.S. Interagency Council on Homelessness is the only federal agency dedicated to preventing and ending homelessness.

6 hours ago - The New York Times