Bill > HB5267

This bill introduces two new sections to the Local Government Code that establish stricter financial requirements for municipalities and counties, with two primary provisions: First, it limits annual expenditures by requiring that a political subdivision's total spending cannot exceed either its previous year's total expenditures or a calculated amount that factors in population growth and inflation rates, as determined by the Legislative Budget Board. Exceptions to this limit include voter approval or a declared state of disaster, with specific restrictions on additional spending during emergencies. Second, the bill mandates enhanced budget transparency by requiring political subdivisions to publish detailed budget summaries on their websites within 20 days of budget adoption, including total budget amounts, spending breakdowns across nine categories (such as public safety, transportation, and debt service), and a taxpayer impact statement that lists and compares fees and property taxes for a "typical residential ratepayer." The new requirements will apply to municipal and county fiscal years beginning on or after December 1, 2025, with the act taking effect on September 1, 2025. The goal appears to be increasing fiscal discipline and providing greater financial transparency for local government budgets.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5267