Texas HB133 limits political subdivision expenditures based on prior year spending and inflation, with voter approval as an exception.

Texas HB133 amends the Local Government Code to limit political subdivision expenditures to either the previous year's spending or a calculated amount based on inflation and population growth, whichever is higher. Political subdivisions can exceed this limit if approved by two-thirds of voters. The bill applies to fiscal years starting after December 1, 2025, and excludes grants, donations, gifts, and disaster relief costs from expenditure calculations. The attorney general can enforce the law through legal action.

Texas HB133 limits political subdivision expenditures based on prior year spending and inflation, with voter approval as an exception.

Texas HB133 amends the Local Government Code to limit political subdivision expenditures to either the previous year's spending or a calculated amount based on inflation and population growth, whichever is higher. Political subdivisions can exceed this limit if approved by two-thirds of voters. The bill applies to fiscal years starting after December 1, 2025, and excludes grants, donations, gifts, and disaster relief costs from expenditure calculations. The attorney general can enforce the law through legal action.