Bill > HB89

This bill establishes a new limit on annual expenditures for municipalities and counties in Texas, requiring that their total spending from all available revenue sources in a fiscal year cannot exceed the greater of either their previous year's total expenditures or a calculated amount based on population growth and inflation rates. The bill defines specific terms like "consumer price index" and "population growth rate," and requires the Legislative Budget Board to publish an annual rate combining these factors. Municipalities and counties can exceed this spending limit in two specific circumstances: if voters approve additional expenditures in a special election or if the governor declares a state of disaster in the political subdivision's geographic area. Certain funding sources are excluded from these calculations, such as voter-approved bond money, grants, donations, and gifts. The new spending limitation will apply to municipal and county fiscal years beginning on or after December 1, 2025, giving local governments time to prepare for the new restrictions. The act will take effect 91 days after the end of the legislative session, providing a transition period for implementation.

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=891&Bill=HB89