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A BILL TO BE ENTITLED
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AN ACT
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relating to a limit on local government expenditures. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 140, Local Government Code, is amended |
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by adding Section 140.012 to read as follows: |
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Sec. 140.012. LIMIT ON ANNUAL EXPENDITURES. (a) In this |
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section, "local government" means a municipality or county. |
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(b) Except as provided by Subsection (d), a local |
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government's total expenditures from all available sources of |
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revenue in a fiscal year may not exceed the greater of: |
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(1) the local government's total expenditures from all |
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available sources of revenue in the preceding fiscal year; or |
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(2) an amount determined by multiplying: |
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(A) the local government's total expenditures |
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from all available sources of revenue in the preceding fiscal year; |
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and |
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(B) the sum of one and the rate most recently |
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published by the Legislative Budget Board under Subsection (c). |
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(c) Not later than January 31 of each year, the staff of the |
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Legislative Budget Board shall publish a rate equal to the product |
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of: |
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(1) the rate of growth of this state's population |
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during the preceding calendar year, using the most recent estimates |
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published by the United States Census Bureau; and |
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(2) the rate of monetary inflation in this state |
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during the preceding calendar year, using the effective consumer |
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price index for all items for this state as determined by the |
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Legislative Budget Board based on information published by the |
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Bureau of Labor Statistics of the United States Department of |
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Labor. |
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(d) A local government's total expenditures from all |
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available sources of local revenue in a fiscal year may exceed the |
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amount described by Subsection (b) if: |
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(1) the local government's voters approve the |
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additional expenditures for that fiscal year at an election called |
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for that purpose and held on a uniform election date; or |
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(2) the governor declares or renews a declaration of a |
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state of disaster under Section 418.014, Government Code, in that |
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fiscal year, and the governor's designation of the area threatened |
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includes all or part of the geographic territory of the local |
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government. |
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(e) Revenue received from the issuance of bonds approved by |
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the voters or from a grant, donation, or gift is not considered an |
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available source of revenue for the purposes of this section. |
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SECTION 2. Section 140.012, Local Government Code, as added |
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by this Act, applies only to a fiscal year of a municipality or |
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county that begins on or after December 1, 2017. |
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SECTION 3. This Act takes effect December 1, 2017. |
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