Texas Bill 73: New Rules for City and County Budgets

HB 73 is a Texas state bill that creates new rules for how cities and counties spend money. Sponsored by Cecil Bell, the bill passed its introduction phase in 2025 and is currently pending in committee. The law would apply to all municipalities and counties across Texas, including those in our area. The bill sets limits on total spending each year. A city or county cannot spend more than it did the previous year, unless that spending grows by both the inflation rate and the state's population growth rate. The Legislative Budget Board will publish this combined growth rate every January 31st. This means budgets can grow, but only in line with how fast prices rise and how fast our state's population grows. HB 73 also requires all cities and counties to post their approved budgets online. Within 20 days of approving a budget, they must share it on their website if they have one, or make it available another way if they do not. The budget summary must show the total amount and break down spending across key areas: general government, public health, public safety, parks and recreation, business and economic development, transportation, debt service, and capital improvements. There are exceptions to the spending limits. Cities and counties can exceed the limits if voters approve extra spending at an election. They can also exceed limits if the governor declares a disaster, though any extra spending must match the actual costs from that disaster. This bill gives residents more visibility into local government budgets while setting predictable spending rules. You can watch for updates as the bill moves through committee and share your thoughts with our elected officials.