HB 132 repeals the Texas Advanced Nuclear Energy Office, established by HB 14 in the 2025 legislative session. It directs the comptroller to transfer all funds previously allocated to this office to the Texas Education Agency. The funds will be used to reduce the state's compression percentage under the education funding formula, which lowers the amount the state must contribute to public school budgets. This change directly affects state budget allocations for public education by redirecting previously designated funds. The bill does not create new policy but modifies existing financial mechanisms.
HB 181 establishes annual spending limits for Texas cities and counties starting in 2026. It prohibits total expenditures from exceeding either last year's spending or last year's spending multiplied by (1 + the rate calculated by the Legislative Budget Board using the state's inflation and population growth rates). Exceptions allow higher spending if voters approve it via election or during a declared state disaster. The bill excludes bond proceeds and grants from the expenditure calculation. This measure aims to control municipal and county budget growth through a formula-based cap tied to economic indicators.
HB 92 proposes replacing certain existing state and local taxes - including school district property taxes - with a new 6.72% state value added tax (VAT) on business transactions. The bill directly affects businesses selling goods or services in Texas, requiring them to pay tax on their sales (output tax) minus tax paid on their purchases (input tax), with exemptions for small businesses, government entities, and nonprofits. Key provisions include excluding financial services, intercompany transactions, and federally prohibited items from the tax, while directing all revenue to the state general fund. This reform aims to overhaul school finance by shifting revenue sources, though it does not specify how school funding will be adjusted.
HB 46 sets a spending cap for Texas counties, cities, school districts, and other local governments authorized to levy property taxes or issue bonds. It limits annual expenditures to either the previous year's total spending or that amount adjusted for population growth and inflation. Local governments must calculate this annual adjustment using data from the U.S. Census Bureau and post it online by January 31. Exceptions allow exceeding the cap if two-thirds of voters approve additional spending in a special election.
This bill establishes spending limits for Texas cities and counties. It requires local governments to keep annual spending within the greater of last year's total spending or last year's spending adjusted for inflation and population growth (calculated by the Legislative Budget Board). Exceptions allow exceeding the limit if voters approve it via election or during a state-declared disaster. The bill directly affects all Texas municipalities and counties by modifying their financial planning requirements.
HJR 11 proposes a constitutional amendment that would limit annual spending growth for Texas state and local governments to the average taxpayer's ability to pay. Governments could exceed this limit only with a 3/4 vote in both legislative chambers for a declared emergency, and any over-collected tax revenue must be returned to taxpayers through reduced tax rates. The amendment requires voter approval in the November 2025 election to take effect, with no impact if rejected. This directly affects state/local budget decisions and taxpayer refunds, not legislative procedures or non-budgetary matters.
HB 93 limits the rate at which state and local governments can increase spending by tying annual budget growth to population and inflation trends. It requires the Legislative Budget Board to calculate a spending growth cap each biennium using the prior three years' average population growth plus inflation (measured by the Consumer Price Index). If actual spending growth falls below this cap, the bill mandates reducing taxes to return over-collected revenue to taxpayers. This applies to all state/local government funding sources, including general revenue and dedicated accounts, and affects all Texas taxpayers through potential tax reductions.
HB 67 would require Texas to deposit half of any surplus state general revenue at the end of each biennium into a property tax relief fund. This fund would be used exclusively by the Texas Education Agency to reduce school district property taxes through adjustments to the state's "compression percentage" formula. The bill directly affects school districts and property taxpayers by creating a mechanism to lower maintenance and operations tax rates. It applies starting with the 2027-2029 state fiscal biennium and takes effect 91 days after the legislative session ends.
This concurrent resolution (HCR 10) urges the U.S. Congress to propose a constitutional amendment requiring a balanced federal budget. It does not create new law but expresses Texas's support for a constitutional change that would prevent federal deficit spending by mandating that annual government spending not exceed revenue. The resolution directs Texas officials to send copies to Congress and request its inclusion in the Congressional Record as a formal request. This is a symbolic action with no legal effect on federal budgeting.
HB 178 requires non-school district political subdivisions (like cities, counties, and special districts) that exceed the "no-new-revenue tax rate" for five consecutive tax years to conduct an independent efficiency audit. The audit examines fiscal management, resource use, and operational efficiency, with the political subdivision covering all costs. Exceptions apply for areas declared disaster zones under state law, allowing voter approval to bypass the audit during a two-year window. Results must be discussed in an open meeting and posted online within 30 days of the meeting, and audits must be completed within three months of hiring an auditor.
