Budget & Taxes (Government Spending)

HB 223 sets a spending cap for Texas cities and counties based on inflation and population growth. It limits annual expenditures to either the previous year's total or that amount multiplied by (1 + the sum of the latest inflation rate and population growth rate) as calculated by the Legislative Budget Board. Exceptions allow increased spending if voters approve it in an election or if a disaster declaration by the governor covers related costs. The bill directly affects all Texas municipalities and counties by requiring them to adjust spending plans annually using these specific economic metrics.

HB 181 establishes annual spending limits for Texas cities and counties starting in 2026. It prohibits total expenditures from exceeding either last year's spending or last year's spending multiplied by (1 + the rate calculated by the Legislative Budget Board using the state's inflation and population growth rates). Exceptions allow higher spending if voters approve it via election or during a declared state disaster. The bill excludes bond proceeds and grants from the expenditure calculation. This measure aims to control municipal and county budget growth through a formula-based cap tied to economic indicators.

HB 46 sets a spending cap for Texas counties, cities, school districts, and other local governments authorized to levy property taxes or issue bonds. It limits annual expenditures to either the previous year's total spending or that amount adjusted for population growth and inflation. Local governments must calculate this annual adjustment using data from the U.S. Census Bureau and post it online by January 31. Exceptions allow exceeding the cap if two-thirds of voters approve additional spending in a special election.

HJR 11 proposes a constitutional amendment that would limit annual spending growth for Texas state and local governments to the average taxpayer's ability to pay. Governments could exceed this limit only with a 3/4 vote in both legislative chambers for a declared emergency, and any over-collected tax revenue must be returned to taxpayers through reduced tax rates. The amendment requires voter approval in the November 2025 election to take effect, with no impact if rejected. This directly affects state/local budget decisions and taxpayer refunds, not legislative procedures or non-budgetary matters.

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.