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 requirements for budget transparency. Specifically, Section 140.014 sets a cap on total expenditures for political subdivisions based on the greater of the previous year's expenditures or an adjusted amount that factors in population growth and inflation rates. Additionally, it allows for exceeding these limits if approved by voters or in the event of a state disaster declaration. Section 140.015 mandates that municipalities and counties post summaries of their adopted and proposed budgets on their websites, detailing the total budget and amounts allocated to various categories such as public safety and capital improvements.

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 residents are informed about how public funds are allocated and spent.

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