Texas HB46 limits political subdivision expenditures based on population growth and inflation rates.

HB46 amends the Local Government Code to impose a limit on annual expenditures by political subdivisions, such as counties and municipalities, starting from fiscal year 2026. The limit is calculated based on the population growth rate and inflation rate for the preceding year. Political subdivisions must publish this rate on their websites by January 31 each year. Expenditures can exceed the calculated limit if approved by at least two-thirds of voters in a special election. The attorney general can enforce this limit through legal action.

Texas HB46 limits political subdivision expenditures based on population growth and inflation rates.

HB46 amends the Local Government Code to impose a limit on annual expenditures by political subdivisions, such as counties and municipalities, starting from fiscal year 2026. The limit is calculated based on the population growth rate and inflation rate for the preceding year. Political subdivisions must publish this rate on their websites by January 31 each year. Expenditures can exceed the calculated limit if approved by at least two-thirds of voters in a special election. The attorney general can enforce this limit through legal action.