Texas HB325 limits municipal and county expenditures based on population growth and inflation rates.

Texas HB325 amends the Local Government Code to impose a limit on annual expenditures for municipalities and counties. The limit is calculated as the greater of the previous year's expenditures or the previous year's expenditures multiplied by the sum of one and the inflation rate. The inflation rate is determined by the Legislative Budget Board based on the consumer price index. The limit can be exceeded if approved by voters or if the governor declares a state of disaster. The Act takes effect September 1, 2025.

Texas HB325 limits municipal and county expenditures based on population growth and inflation rates.

Texas HB325 amends the Local Government Code to impose a limit on annual expenditures for municipalities and counties. The limit is calculated as the greater of the previous year's expenditures or the previous year's expenditures multiplied by the sum of one and the inflation rate. The inflation rate is determined by the Legislative Budget Board based on the consumer price index. The limit can be exceeded if approved by voters or if the governor declares a state of disaster. The Act takes effect September 1, 2025.