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Read. Follow. Verify.Texas Bill Caps Municipal and County Annual Expenditure Increases and Mandates Detailed Budget Summaries Online
Last action · August 22, 2025: Left pending in committeeSponsor: Cecil Bell
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What This Bill Proposed
Texas municipalities and counties are restricted from increasing their annual expenditures beyond the previous year's spending plus the combined rates of inflation and population growth, unless approved by voters or a disaster is declared. Additionally, local governments must publish detailed budget summaries and taxpayer impact statements online.
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Municipalities
City governments must comply with annual expenditure limits based on inflation and population growth and publish detailed budget summaries online.
Counties
County governments must comply with annual expenditure limits based on inflation and population growth and publish detailed budget summaries online.
Local taxpayers
Taxpayers gain access to comparative online budget summaries and taxpayer impact statements showing fee and property tax changes.
Key Facts
- Municipal and county total expenditures from all revenue sources in a fiscal year cannot exceed the prior year's expenditures multiplied by one plus the sum of the population growth rate and inflation rate, or the prior year's expenditures, whichever is greater.
- The Legislative Budget Board must publish the combined population growth and inflation rate not later than January 31 of each year.
- Expenditure caps can be exceeded if voters approve additional spending at an election held on a uniform election date, or if the governor declares a state of disaster.
- Excess expenditures permitted under a disaster declaration cannot exceed the actual costs incurred by the political subdivision as a result of the disaster.
Show all 9 facts
- Voter-approved bond funds, grants, donations, and gifts are excluded from the available sources of revenue restricted by the expenditure cap.
- Municipalities and counties must post a summary of the adopted budget on their website within 20 days after adoption, including spending across nine specific categories.
- Local governments must include a taxpayer impact statement listing fees and property taxes imposed on a typical residential ratepayer for the current and upcoming fiscal years.
- A proposed budget summary must be posted on the internet at least 20 days before a public hearing on the budget adoption.
- The financial requirements apply to fiscal years beginning on or after January 1, 2026.
Frequently Asked Questions
How is the expenditure limit calculated for cities and counties?
Can a local government exceed the expenditure cap during an emergency?
What information must be included in the taxpayer impact statement?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
7 actions- Aug 22, 2025HouseLeft pending in committee
- Aug 22, 2025HouseTestimony taken/registration(s) recorded in committee
- Aug 22, 2025HouseConsidered in public hearing
- Aug 22, 2025HouseScheduled for public hearing on . . .
- Aug 18, 2025HouseCommitteeReferred to Intergovernmental Affairs
- Aug 18, 2025HouseIntroducedRead first time
Show 1 earlier action
- Aug 15, 2025HouseIntroducedFiled
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Connected Entities
Sources
capitol.texas.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 80)
- Controversy65Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz45Current news / social attention level
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