Texas HB3537 limits local government expenditures based on inflation and population growth rates.

Texas HB3537 amends the Local Government Code to impose a limit on annual expenditures for municipalities, counties, and special purpose districts. The limit is based on the greater of the previous fiscal year's expenditures or a calculated amount that includes the inflation rate and population growth rate. The Legislative Budget Board must report annually on changes in the purchasing power of the dollar. The limit applies to fiscal years beginning on or after December 1, 2025.

Texas HB3537 limits local government expenditures based on inflation and population growth rates.

Texas HB3537 amends the Local Government Code to impose a limit on annual expenditures for municipalities, counties, and special purpose districts. The limit is based on the greater of the previous fiscal year's expenditures or a calculated amount that includes the inflation rate and population growth rate. The Legislative Budget Board must report annually on changes in the purchasing power of the dollar. The limit applies to fiscal years beginning on or after December 1, 2025.