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 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 under certain conditions, such as 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 municipalities and counties provide a summary of their adopted and proposed budgets on their websites or through public means. This summary must include detailed financial information, such as total budget amounts, category-specific allocations, and a taxpayer impact statement that outlines fees and property taxes for typical residential ratepayers. These provisions are set to take effect for fiscal years beginning on or after December 1, 2025, and the bill will become law 91 days after the end of the legislative session.

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