Relating to a limit on municipal and county expenditures.

HB 89 limits annual spending for Texas cities and counties by requiring their total expenditures to not exceed either last year's spending or a modified amount based on inflation and population growth. The adjustment factor - calculated annually by the Legislative Budget Board using the product of the state's inflation rate and population growth rate - is applied to the previous year's spending. Exceptions allow higher spending if voters approve it at a special election or if a governor declares a state of disaster affecting the area. The law applies to fiscal years starting December 1, 2025, and excludes bond proceeds and grants from the spending calculation.