Texas House Bill HB133

Texas 2025 - 89th 1st C.S.

• Filed: 7/18/25

Caption

Relating to a limit on political subdivision expenditures.

Impact

If enacted, HB 133 would significantly alter the fiscal landscape for political subdivisions, requiring them to adhere to strict expenditure limitations that could directly impact their ability to fund services and infrastructure projects. The bill's stipulation that any excess expenditures must be approved by two-thirds of local voters at an election introduces a democratic accountability mechanism but may complicate urgent financial needs. This could lead to constraints on local services, public safety, and education unless voter support is secured for necessary funding increases.

Summary

House Bill 133 seeks to impose limits on the annual expenditures of political subdivisions, including counties, municipalities, school districts, and other local government entities. Specifically, the bill establishes a framework whereby a political subdivision's total expenditures cannot exceed the greater amount of either the previous fiscal year's expenditures or a calculation based on the population growth and inflation rates. This regulatory action is aimed at ensuring responsible fiscal management within local governments while attempting to accommodate the financial realities of growth in population and inflationary pressure.

Contention

The potential for contention surrounding HB 133 lies in the balance between fiscal responsibility and the autonomy of local governments. Supporters argue that such expenditure limits create necessary checks to prevent overspending and ensure taxpayer dollars are managed effectively. Conversely, critics may view these limits as an infringement on local control, arguing that one-size-fits-all expenditure caps may not appropriately reflect the unique needs and circumstances of different political subdivisions. The necessity for voter approval for any budget increases could also result in pressures on local governments, particularly during times of economic downturn.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 140. Miscellaneous Financial Provisions Affecting Municipalities, Counties, And Other Local Governments
  • Section: New Section