Bill > HB223

This bill introduces two new sections to the Local Government Code that impose financial restrictions and transparency requirements on municipalities and counties in Texas. First, it establishes a limit on annual expenditures by requiring that a political subdivision's total spending cannot exceed either its previous year's expenditures or a calculated amount based on population growth and inflation rates, as determined by the Legislative Budget Board. The bill allows exceptions to this limit if voters approve additional spending in an election or if the governor declares a state of disaster, with the latter exception limited to actual disaster-related costs. Separately, the bill mandates that municipalities and counties must publish detailed budget summaries on their websites within specific timeframes, including total budget amounts, spending broken down into nine categories (such as public safety, parks and recreation, and debt service), and a taxpayer impact statement that lists and compares fees and property taxes for a typical residential ratepayer. The new regulations will apply to fiscal years beginning on or after December 1, 2025, giving local governments time to prepare for these new requirements. The bill aims to provide greater fiscal accountability and transparency for local government spending.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB223