House Bill No. 223 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 a limit on annual expenditures for political subdivisions and require them to provide budget summaries. Specifically, Section 140.014 sets a cap on total expenditures based on the previous fiscal year's spending or a calculated amount that factors in population growth and inflation rates. It also allows for exceptions if voters approve additional spending or if a state of disaster is declared. 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. This bill aims to enhance fiscal responsibility and transparency in local government budgeting processes, ensuring that residents are informed about how their tax dollars are being allocated and spent. The act will take effect 91 days after the conclusion of the legislative session.

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