HB325 - Relating to a limit on municipal and county expenditures.

  89R930 AMF-D     By: Cain H.B. No. 325       A BILL TO BE ENTITLED   AN ACT   relating to a limit on municipal and county expenditures.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 140, Local Government Code, is amended   by adding Section 140.014 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.          SECTION 2.  Section 140.014, Local Government Code, as added   by this Act, applies 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.