...DALLAS (S&P Global Ratings) Nov. 20, 2018--S&P Global Ratings today said that the passage of Proposition B, which requires the City of Houston to adjust the compensation of city firefighters, will require extensive budgetary changes. On Nov. 6, voters in Houston (GO debt rating: ##/Stable) passed Proposition B, which directs the city to compensate city firefighters in a manner and amount that is at least equal and comparable by rank and seniority with the compensation provided to city police officers. In our view, an unexpected addition of significant payroll increases could negatively affect the city's finances if not met with other budget-balancing actions. The city is under a property tax cap and faces a budget deficit ranging between $100 million and $200 million by fiscal 2022. The city notes that a reduction in force, a restructuring of current operations, a reduction in service, as well as reductions in other city departments would be needed to adhere to and afford the payroll increases...
