Relating to municipal and county financial requirements.

HB 104 sets spending limits for Texas cities and counties by capping annual expenditures at either last year's total or last year's total adjusted for inflation and population growth. The bill requires local governments to calculate their spending limit using the sum of the state's inflation rate (based on consumer prices) and population growth rate, published annually by the Legislative Budget Board. Exceptions allow spending above the cap if voters approve the increase or if a governor declares a state of disaster affecting the area. This bill directly affects all Texas municipalities and counties by requiring them to track and report expenditures against these new limits.