FISCAL NOTE, 89TH LEGISLATURE 2nd CALLED SESSION 2025
August 21, 2025
TO:
Honorable Cecil Bell, Chair, House Committee on Intergovernmental Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB46 by Tepper (Relating to a limit on political subdivision expenditures.), As Introduced
No significant fiscal implication to the State is anticipated.
It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
The bill would set a limit on the total annual expenditures, excluding disaster relief costs, of political subdivisions that are authorized by law to impose property taxes or issue bonds. The bill would prohibit such a political subdivision's total spending from all available revenue sources in a fiscal year, excluding grants, donations, or gifts, from exceeding the greater of the total amount spent in the previous fiscal year or that same amount adjusted by a growth factor equal to the product of the political subdivision's population growth rate and inflation rate, as defined by the bill. The bill would provide for an exception to the limit if at least two-thirds of the political subdivision's voters approve the additional expenditures for that fiscal year at an election called for that purpose and held on a uniform election date.