Bill Text: TX HB325 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to a limit on municipal and county expenditures.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-11-12 - Filed [HB325 Detail]
Download: Texas-2025-HB325-Introduced.html
| 89R930 AMF-D | ||
| By: Cain | H.B. No. 325 | |
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| relating to a limit on municipal and county expenditures. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 140, Local Government Code, is amended | ||
| by adding Section 140.014 to read as follows: | ||
| Sec. 140.014. LIMIT ON ANNUAL EXPENDITURES. (a) In this | ||
| section: | ||
| (1) "Board" means the Legislative Budget Board. | ||
| (2) "Consumer price index" means the average over a | ||
| calendar year of the index the board considers to most accurately | ||
| report changes in the purchasing power of the dollar for consumers | ||
| in this state. | ||
| (3) "Inflation rate" means the amount, expressed in | ||
| decimal form rounded to the nearest thousandth, computed by | ||
| determining the percentage change in the consumer price index for | ||
| the preceding calendar year as compared to the consumer price index | ||
| for the calendar year preceding that calendar year. | ||
| (4) "Population growth rate" means the rate of growth | ||
| of the state's population during the preceding calendar year, | ||
| expressed in decimal form rounded to the nearest thousandth, | ||
| determined by the board in accordance with the most recent | ||
| population estimates published by the United States Census Bureau. | ||
| (b) This section applies only to a political subdivision | ||
| that is a municipality or county. | ||
| (c) Except as provided by Subsection (e), a political | ||
| subdivision's total expenditures from all available sources of | ||
| revenue in a fiscal year may not exceed the greater of: | ||
| (1) the political subdivision's total expenditures | ||
| from all available sources of revenue in the preceding fiscal year; | ||
| or | ||
| (2) an amount determined by multiplying: | ||
| (A) the political subdivision's total | ||
| expenditures from all available sources of revenue in the preceding | ||
| fiscal year; and | ||
| (B) the sum of one and the rate most recently | ||
| published by the board under Subsection (d). | ||
| (d) Not later than January 31 of each year, the board shall | ||
| publish a rate equal to the product of the population growth rate | ||
| and the inflation rate. | ||
| (e) A political subdivision's total expenditures from all | ||
| available sources of local revenue in a fiscal year may exceed the | ||
| amount described by Subsection (c) if: | ||
| (1) the political subdivision's voters approve the | ||
| additional expenditures for that fiscal year at an election called | ||
| for that purpose and held on a uniform election date; or | ||
| (2) the governor declares or renews a declaration of a | ||
| state of disaster under Section 418.014, Government Code, in that | ||
| fiscal year, and the governor's designation of the area threatened | ||
| includes all or part of the geographic territory of the political | ||
| subdivision. | ||
| (f) For purposes of this section, the following are not | ||
| considered an available source of revenue: | ||
| (1) money received from the issuance of bonds approved | ||
| by the voters; or | ||
| (2) a grant, donation, or gift. | ||
| SECTION 2. Section 140.014, Local Government Code, as added | ||
| by this Act, applies only to a fiscal year of a municipality or | ||
| county that begins on or after December 1, 2025. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
