By: Toth H.B. No. 3537       A BILL TO BE ENTITLED   AN ACT   relating to a limit on local government expenditures.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 140, Local Government Code, is amended   by adding Section 140.014 to read as follows:          Sec. 140.014.  LIMIT ON ANNUAL EXPENDITURES. (a)  In this   section:                (1)  "Board" means the Legislative Budget Board.                (2)  "Consumer price index" means the average over a   calendar year of the index the board considers to most accurately   report changes in the purchasing power of the dollar for consumers   in this state.                (3)  "Inflation rate" means the amount, expressed in   decimal form rounded to the nearest thousandth, computed by   determining the previous three-year average percentage change in   the chained consumer price index for the three preceding calendar   years published by the Bureau of Labor Statistics.                (4)  "Population growth rate" means the rate of growth   of the state's population during the preceding three-year average   percentage change for the last three calendar years, expressed in   decimal form rounded to the nearest thousandth, determined by the   board in accordance with the most recent population estimates   published by the United States Census Bureau.          (b)  This section applies to all political subdivisions.          (c)  Except as provided by Subsection (e), a political   subdivision's total expenditures from all available sources of   revenue in a fiscal year may not exceed the greater of:                (1)  the political subdivision's total expenditures   from all available sources of revenue in the preceding fiscal year;   or                (2)  an amount determined by multiplying:                      (A)  the political subdivision's total   expenditures from all available sources of revenue in the preceding   fiscal year; and                      (B)  the sum of one and the rate most recently   published by the board under Subsection (d).          (d)  Not later than January 31 of each year, the board shall   publish a rate equal to the sum of the population growth rate and   the inflation rate.          (e)  A political subdivision's total expenditures from all   available sources of local revenue in a fiscal year may exceed the   amount described by Subsection (c) if:                (1)  the political subdivision's voters approve the   additional expenditures for that fiscal year at an election called   for that purpose and held on a uniform election date.          (f)  For purposes of this section, the following are not   considered an available source of revenue:                (1)  money received from the issuance of bonds approved   by the voters; or                (2)  a grant, donation, or gift.          SECTION 2.  Section 140.014, Local Government Code, as added   by this Act, applies only to a fiscal year of a municipality or   county or special purpose district that begins on or after December   1, 2025.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.