Houston is offering voluntary buyouts to retirement-eligible employees to tackle budget challenges while avoiding layoffs.

The retirement incentive comes on the heels of a hiring freeze. The city faces a more than $330 million projected budget deficit heading into the next fiscal year.

As Houston contends with a $320 million budget deficit heading into the new fiscal year, Mayor John Whitmire plans to offer municipal employees a retirement payout as officials look for ways to cut costs.