TX HB325

Limits annual expenditures for municipalities and counties to the greater of the prior fiscal year's total expenditures or the prior year's expenditures multiplied by a rate based on population growth and inflation

Requires the Legislative Budget Board to publish a rate by January 31 each year equal to the product of the state's population growth rate and inflation rate, based on U.S. Census Bureau and consumer price index data

Allows expenditures to exceed the limit if voters approve the additional spending at an election held on a uniform election date, or if the governor declares a state of disaster affecting the political subdivision's territory

Excludes voter-approved bond proceeds and grants, donations, or gifts from the expenditure limit calculations

Takes effect September 1, 2025, applying to fiscal years beginning on or after December 1, 2025