House Bill No. 5267 introduces new financial regulations for municipalities and counties in Texas by amending the Local Government Code. It adds two sections, 140.014 and 140.015, which establish limits on annual expenditures and require transparency in budget summaries. Specifically, Section 140.014 sets a cap on total expenditures for political subdivisions, allowing them to exceed this limit only with voter approval or in the event of a declared disaster. The cap is determined by the greater of the previous year's expenditures or an adjusted amount based on population growth and inflation rates published annually by the Legislative Budget Board. Section 140.015 mandates that political subdivisions post summaries of their adopted and proposed budgets online, detailing total amounts and specific categories of expenditures, along with a taxpayer impact statement.

The provisions outlined in Sections 140.014 and 140.015 will only apply to fiscal years beginning on or after December 1, 2025, and the bill is set to take effect on September 1, 2025. This legislation aims to enhance fiscal responsibility and transparency in local government budgeting processes, ensuring that taxpayers are informed about how their money is being spent.

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