Largest Tax Hike in Harris County History Raises Efficiency Question

8/7/26 – Yesterday, Harris County Commissioners discussed the largest tax hike in Harris County history. Before raising taxes a penny, they should examine the efficiency of the departments they oversee.

To see why, review the recent history of the Harris County Housing & Community Development (HCD) Department and Flood Control District (HCFCD). Together, they manage more than a billion dollars of Community Development Block Grant (CDBG) projects for the U.S. Department of Housing and Urban Development (HUD) via the Texas General Land Office (GLO).

Since 2022, I have posted about slowdowns in Harris County flood-mitigation projects as one deadline after another slipped. It started with wholesale management changes made by the Democratic majority on Commissioners Court.

The slowdowns became so serious in the case of HCFCD that the department head recently resigned under pressure. As statistics below show, she left her successor, Marcus Stuckett, with huge challenges.

The problems at HCD have not yet received the attention that HCFCD received. But they are also serious.

Both groups must use grant money by strict deadlines or lose it. And both are far behind schedule.

They raise the questions, “Will tax increases continue to fund inefficiency? And if so, are increases really necessary?”

CDBG Projects Bring Efficiency Issues into Sharp Focus

At HCFCD, the potential loss of hundreds of millions of dollars in Community Development Block Grant (CDBG) funds brought the former Executive Director’s efficiency into sharp focus. She failed to advance projects in a timely manner. And that is jeopardizing hundreds of millions of dollars in federal funding. Harris County taxpayers backstop those funds.

Precinct 3 Commissioner Tom Ramsey, PE fought to expose HCFCD’s problems, even as Precinct 2 Commissioner Adrian Garcia fought to keep in place the very people covering the problems up.

So, where exactly do things stand? How bad is the problem?

To answer those questions, I relied on data supplied by the GLO in Austin.

Housing and Community Development Projects

GLO awarded HCD $204 million dollars on 8/31/2022. To date, HCD has expended $69 million (34%). They must expend the remaining two thirds by August 31, 2027. So…

HCD has expended only 34% of the funds in 80% of available time.

Their $204 million includes 10 neighborhood drainage infrastructure projects valued at $168 million. Of the 10:

• Construction is complete on one
• Six are in various stages of construction (46-89% complete)
• One is being advertised for bids
• Two are still in design.

GLO also awarded HCD $37.5 million for 30 planning studies. Of those:

• One was withdrawn
• One is complete
• The remainder are just starting or in various stages of completion ranging from 1% to 50%.

These also have deadlines of August 31, 2027.

HCFCD CDBG Mitigation Grants

HCFCD received an allocation of $546 million in CDBG Mitigation (MIT) funds in 2023. To date, it has expended only $25 million. HCFCD must complete construction and GLO must receive final billing by 3/31/28 – only 20 months away. Thus, under Dr. Tina Petersen…

HCFCD managed to spend 5% of its MIT money in 64% of available time.

HCFCD CDBG – DR Grants

GLO also approved an HCFCD allocation for $322 million in CDBG-Disaster Relief (DR) funds on 11/27/23. Almost 34 months later, HCFCD has expended only $15.6 million. So…

HCFCD has spent less than 5% of DR funds in 84% of available time.

Summary Table

This table summarizes the status of CDBG projects.

According to the GLO, only seven of 29 HCFCD DR and MIT projects are actually in construction.

HCFCD’s report submitted to Commissioners Court this week shows 12 “in construction.” However, only seven of the 12 have any work billed against them. Delays in contractor mobilization may account for the difference.

So, where do we go from here?

The Bundle Jumble

Before Dr. Tina Petersen resigned, she tried to cobble together a plan that would get HCFCD past the $322 million DR hurdle.

She reached agreement in principle* with both the GLO and Harris County Commissioners Court to apply work billed to date in all four categories above against the $322 million DR obligation. That would give the county a little more breathing room.

In a best-case scenario, the county might bill enough to meet the entire $322 million obligation and lose nothing. In a less-than-best-case scenario, the county would narrow its losses.

Will It Work?

To date, the county has spent only $109 million in all four programs together. That covers only about a third of the $322 million.

What happens if HCFCD’s new management and HCD can’t spend another $213 million in the next six months? Potentially, HUD could start clawing back money from the GLO and the GLO could start clawing it back from the County.

But Harris County has already encumbered money for its suppliers. So, the buck stops with Harris County taxpayers.

Remember as you follow the county’s budget debate in coming weeks to ask whether you’re paying for additional services you want or simply funding inefficiency.

Posted by Bob Rehak on 8/7/2026

3265 Days since Hurricane Harvey

*When I asked the GLO for the wording of the agreement, a spokesperson said, “It has not been finalized yet. We are still getting details we need to write the amendment.”