HCFCD Construction Slowdown May Be on Verge of Turnaround
07/27/26 – New spending figures are available from Harris County Flood Control District (HCFCD) through the end of 2026 Q2. This quarter marks the end of Dr. Tina Petersen’s administration and the start of new Executive Director Marcus Stuckett’s. In that sense, it represents (pardon the pun) a watershed moment.
HCFCD spending data shows that Stuckett inherits a production pipeline that was not pushing flood-mitigation projects into and through construction at historically normal rates.
Eight years into what was supposed to have been a 10-year bond program, Harris County has spent only 37% of the dollars approved by voters while inflation in the heavy-construction sector of the economy has totaled more than 50%.
As a consequence, inflation is taking a huge toll on the Flood Bond’s purchasing power…and making residents live with higher flood risk longer than necessary.
But there’s also some good news: 6 HCFCD construction jobs on the Harris County Commissioners Court Agenda this week!
Let’s look at each of these points.
Construction Slowdown
Shortly after voters approved the flood bond in 2018, spending on flood-mitigation projects soared. But then, the team that sold the bond and defined hundreds of projects was pushed out by Democrats starting in 2021.
Precinct 2 Commissioner Adrian Garcia managed to get Dr. Tina Petersen appointed head of HCFCD at the start of 2022. And ever since, for whatever reason, project activity has plummeted. You can clearly see it in the rate of spending below – despite having billions of dollars available.
HCFCD spending since 2018 Flood Bond as of 26Q2. Far right reflects only 2 quarters. But even doubled, 2026 would represent a continuation of the long-term decline.
The gray area in the graph above represents construction spending. It has dropped almost by half since its peak during the previous administration. Construction is down to $90 million per year [annualized] from $160 million per year [actual].
As a result of the slowdown, Harris County could lose hundreds of millions of dollars in HUD Community Development Block Grants for Disaster Relief, whose deadlines are fast approaching.
Lower-than-Normal Construction Expenditures as Percent of Total
Typically, construction accounts for about 65% of most flood-mitigation projects, give or take 10%.
That number can vary even more depending on land-acquisition costs, environmental permitting, etc. There are always exceptions. But on average, 65% is considered a defensible rule of thumb for planning purposes by many flood experts; some suggest the figure may even be higher.
So, how has HCFCD spending compared? It falls far short of 65%. Looking at everything spent to date, only 46% has been on construction. But even that number may be deceptively high.
Construction spending on maintenance masks what’s happening on the capital-improvement side. So let’s also look at each sub-category.
HCFCD capital-improvement construction spending to date is just 37% of all capital improvement costs. And the Total percentage is buoyed up by construction spending on Maintenance.
Remember that only capital-improvement construction dollars actually reduce flood risk.
Only 37% of Bond Money Spent After 8 Years into 10-Year Bond Program
There’s another significant takeaway from last quarter’s update. HCFCD has spent only 37% of the bond money approved by voters – eight years into what was supposed to have been a 10-year bond program.
Sorting expenditures on the HCFCD Activity Page by “Fund Source” shows that only $932.69 million of the $2.5 billion bond has actually been spent to date. This excludes district and partner funds.
54% Inflation in Heavy Construction Sector Since Start of Flood Bond
But all the data above illustrates only part of the problem. Cumulative inflation in the heavy-construction sector of the economy totals 54% from mid-2018 (when voters approved the Flood Bond) to mid-2026. (Source: Federal Highway Administration’s National Highway Construction Cost Index, considered by many as a good analog for flood-control work).
This inflation has progressively eroded the purchasing power of flood-mitigation construction budgets.
A Bad Institutional Hangover
Problems moving projects into and through HCFCD’s production pipeline in a timely way has resulted in:
- Inflation gobbling up a large percentage the bond’s purchasing power
- Fast-approaching deadlines jeopardizing hundreds of millions of dollars in federal funding
- People living with higher flood risk longer than necessary.
Yet Commissioner Adrian Garcia defended former HCFCD Executive Director Dr. Tina Petersen to the bitter end… against the interests of his own constituents. It will be interesting to see if this affects his re-election campaign this Fall.
Some Good News This Thursday
There is some good news in all of this on the horizon. It looks like HCFCD’s new Executive Director, Marcus Stuckett, is making an immediate impact. This Thursday’s Commissioner’s Court agenda shows six CIP projects starting construction or going out for construction bids. They include:
- Meyergrove Stormwater Detention Basin
- Halls Bayou Channel Conveyance Improvements – Phase II
- T.C. Jester Stormwater Detention Basins – Compartments 1A and 2
- Lauder Stormwater Detention Basin – Phase 3A
- Genoa Red Bluff Stormwater Detention – Basins Phase 2 – CDBG-DR/MIT
- Kluge Stormwater Detention Basin – Phase 3 – CDBG-DR/MIT
Hopefully Stuckett can get construction projects moving again.
Posted by Bob Rehak on 7/27/26
3254 Days since Hurricane Harvey
The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.
