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

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.

April 16, 2025 - Diana Ionescu

Black and white photos of camp made up of small 'earthquake shacks' in Dolores Park in 1906 after the San Francisco earthquake.

The 120 Year Old Tiny Home Villages That Sheltered San Francisco’s Earthquake Refugees

More than a century ago, San Francisco mobilized to house thousands of residents displaced by the 1906 earthquake. Could their strategy offer a model for the present?

April 15, 2025 - Charles F. Bloszies

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20 - Streetsblog USA

Close-up on BLM sign on Continental Divide Trail in Rawlins, Wyoming.

BLM To Rescind Public Lands Rule

The change will downgrade conservation, once again putting federal land at risk for mining and other extractive uses.

April 20 - Public Domain

Calvary Street bridge over freeway in Indianapolis, Indiana.

Indy Neighborhood Group Builds Temporary Multi-Use Path

Community members, aided in part by funding from the city, repurposed a vehicle lane to create a protected bike and pedestrian path for the summer season.

April 20 - Smart Cities Dive