Relating to a limit on political subdivision expenditures and the adoption of ad valorem tax rates.

HB 203 limits annual spending for Texas local governments (like counties, cities, school districts, and special districts) that impose property taxes or issue bonds. It requires these entities to cap annual spending increases at the combined rate of inflation (based on the consumer price index) and population growth, excluding disaster relief costs. The bill defines key terms like "inflation rate" and "disaster relief cost" to calculate the spending limit. This directly affects how local governments budget and adjust tax rates each year. The law aims to control spending growth by tying it to measurable economic and demographic factors.