Bill > HB46

This bill establishes a new limit on annual expenditures for political subdivisions in Texas, including counties, municipalities, school districts, and other special districts that can impose property taxes or issue bonds. The law requires that a political subdivision's total expenditures in a fiscal year cannot exceed either its previous year's total expenditures or a calculated amount that factors in population growth and inflation rates. Each year by January 31, political subdivisions must calculate and publicly post their growth rate, which is determined by multiplying the population growth rate and inflation rate. Exceptions to the expenditure limit are allowed if at least two-thirds of voters approve additional spending at a designated election. Grants, donations, and disaster relief costs are not considered in calculating expenditures. The attorney general is empowered to enforce these provisions through legal actions such as seeking injunctions, mandamus, or declaratory judgments. The bill will take effect on February 1, 2026, and will apply to fiscal years beginning on or after that date, with the comptroller responsible for creating the form political subdivisions will use to report their calculated growth rates.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB46