TX HB5449

Limits the rate of growth in state and local government appropriations to the sum of the prior three-year average annual rate of population growth plus the prior three-year average annual rate of inflation, using data from the U.S. Bureau of Labor Statistics and Census Bureau

Expands the definition of "all funds appropriations" to include general revenue funds, dedicated accounts, general revenue-related funds, other state/local funds, and federal funds in state or local treasuries

Requires the Legislative Budget Board to establish and adopt spending limits before transmitting budget recommendations to the governor or legislature, with spending limits defaulting to zero growth if the Board fails to act

Mandates that any over-collected taxpayer money exceeding the appropriation limits must be returned to taxpayers through tax reductions

Allows the legislature to exceed the all-funds appropriation limit only by passing a resolution with a three-fourths vote in each house, declaring an emergency and specifying the excess amount authorized

Takes effect September 1, 2025, applying to appropriations for the state fiscal biennium beginning that date and subsequent bienniums