By: Cain	H.B. No. 103

	A BILL TO BE ENTITLED
	AN ACT
	relating to a limit on municipal and county expenditures.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 140, Local Government Code, is amended
	by adding Section 140.014 to read as follows:
	Sec. 140.014.  LIMIT ON ANNUAL EXPENDITURES. (a) In this
	section:
	(1)  "Board" means the Legislative Budget Board.
	(2)  "Consumer price index" means the average over a
	calendar year of the index the board considers to most accurately
	report changes in the purchasing power of the dollar for consumers
	in this state.
	(3)  "Inflation rate" means the amount, expressed in
	decimal form rounded to the nearest thousandth, computed by
	determining the percentage change in the consumer price index for
	the preceding calendar year as compared to the consumer price index
	for the calendar year preceding that calendar year.
	(4)  "Population growth rate" means the rate of growth
	of the state's population during the preceding calendar year,
	expressed in decimal form rounded to the nearest thousandth,
	determined by the board in accordance with the most recent
	population estimates published by the United States Census Bureau.
	(b)  This section applies only to a political subdivision
	that is a municipality or county.
	(c)  Except as provided by Subsection (e), a political
	subdivision's total expenditures from all available sources of
	revenue in a fiscal year may not exceed the greater of:
	(1)  the political subdivision's total expenditures
	from all available sources of revenue in the preceding fiscal year;
	or
	(2)  an amount determined by multiplying:
	(A)  the political subdivision's total
	expenditures from all available sources of revenue in the preceding
	fiscal year; and
	(B)  the sum of one and the rate most recently
	published by the board under Subsection (d).
	(d)  Not later than January 31 of each year, the board shall
	publish a rate equal to the product of the population growth rate
	and the inflation rate.
	(e)  A political subdivision's total expenditures from all
	available sources of local revenue in a fiscal year may exceed the
	amount described by Subsection (c) if:
	(1)  the political subdivision's voters approve the
	additional expenditures for that fiscal year at an election called
	for that purpose and held on a uniform election date; or
	(2)  the governor declares or renews a declaration of a
	state of disaster under Section 418.014, Government Code, in that
	fiscal year, and the governor's designation of the area threatened
	includes all or part of the geographic territory of the political
	subdivision.
	(f)  For purposes of this section, the following are not
	considered an available source of revenue:
	(1)  money received from the issuance of bonds approved
	by the voters; or
	(2)  a grant, donation, or gift.
	SECTION 2.  Section 140.014, Local Government Code, as added
	by this Act, applies only to a fiscal year of a municipality or
	county that begins on or after December 1, 2023.
	SECTION 3.  This Act takes effect on the 91st day after the
	last day of the legislative session.

Statutes affected:
Introduced: ()