bill capping city and county spending at last year’s level

The text as introduced · 762 words

89R15047 DNC-F

By: Bell of Montgomery
H.B. No. 5267

A BILL TO BE ENTITLED

AN ACT

relating to municipal and county financial requirements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 140, Local Government Code, is amended

by adding Sections 140.014 and 140.015 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.

Sec. 140.015. TAXPAYER'S BUDGET SUMMARY. (a) This section

applies only to a political subdivision that is a municipality or

county.

(b) A political subdivision shall not later than the 20th

day after the date the governing body of the political subdivision

adopts a budget for the fiscal year post on the political

subdivision's Internet website, if the political subdivision

maintains a website, a summary of the adopted budget that includes:

(1) the total amount of the budget adopted for that

fiscal year; and

(2) the amount budgeted for the fiscal year in each of

the following categories:

(A) general government;

(B) public health;

(C) public safety;

(D) parks and recreation;

(E) business and economic development;

(F) transportation;

(G) debt service;

(H) capital improvements; and

(I) other expenditures.

(c) A political subdivision shall not later than the 20th

day before the date the governing body of the political subdivision

holds a public hearing on the adoption of a budget for the upcoming

fiscal year post on the political subdivision's Internet website,

if the political subdivision maintains a website, a summary of the

proposed budget that includes for each category described by

Subsection (b), in a manner that allows comparison of the amounts

across categories:

(1) the budgeted amount for the preceding fiscal year;

and

(2) the proposed amount for the upcoming fiscal year.

(d) A summary prepared under this section:

(1) must include a total budget amount that is equal to

the sum of the budget amounts provided for each category; and

(2) may not include an expenditure in more than one

budget category.

SECTION 2. Sections 140.014 and 140.015, Local Government

Code, as added by this Act, apply 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.