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Bill

Bill

HB 93

Relating to a limitation on the rate of growth in state and local appropriations with the return of over-collected taxpayer money by reducing taxes.

89th Legislature, 2nd Called Session (2025) Introduced by Steve Toth

Texas bill capping state and local spending growth and mandating tax cuts when government revenues exceed collections to reduce accumulated surpluses.

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Bill Summary · HB 93

Legislative bill overview

HB 93 proposes to cap the growth rate of state and local government appropriations and requires the return of tax revenue that exceeds collections through tax reductions. The bill aims to limit government spending expansion and redistribute surplus tax collections back to taxpayers rather than allowing them to accumulate in government reserves.

Why is this important

This addresses recurring debates about government fiscal discipline and tax policy. If enacted, it could significantly constrain budget flexibility during economic growth periods, affect service delivery planning, and change how governments handle revenue surpluses—issues that directly impact education, infrastructure, and public services funding.

Potential points of contention

  • Appropriations cap mechanics: Defining what counts toward the growth limit and how it applies across different fund sources and emergency situations could create implementation complexity and legal disputes
  • Economic cycle impacts: Rigid spending caps during economic booms may prevent governments from building reserves for downturns, potentially forcing service cuts during recessions when needs typically increase
  • Local government autonomy: If the limitation applies to both state and local appropriations, it may restrict cities and counties' ability to fund locally-prioritized services and respond to community-specific needs
  • Tax reduction timing: Automatic tax reductions based on over-collection could conflict with government obligations to maintain funding for constitutionally-mandated services like public education

Compiled from official sources — confirm details with the bill’s official record.

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