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HB 44

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, 1st Called Session (2025) Introduced by Terri Leo-Wilson and 3 co-sponsors

HB 44 caps state and local spending growth and requires tax cuts when revenue exceeds projections, limiting government budget flexibility during both surplus and emergency periods.

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Bill Summary · HB 44

Legislative bill overview

HB 44 proposes to cap the rate of growth in state and local government appropriations and requires that tax revenue collected above projections be returned to taxpayers through tax reductions. The bill establishes a mechanism to limit government spending growth while automatically triggering tax cuts when revenue exceeds forecasts.

Why is this important

This bill would structurally change how Texas government budgets operate by constraining spending flexibility and creating mandatory tax refunds during revenue surpluses. It affects every state agency, local government, and taxpayer by potentially reducing available funding for services while guaranteeing tax relief in years of strong revenue collection.

Potential points of contention

  • Spending constraints during crises: A rigid appropriations cap may prevent government from responding adequately to emergencies, natural disasters, or unexpected increases in service demand (education enrollment spikes, health crises)
  • Defining "over-collected" revenue: Disputes over revenue forecasting methodology could become contentious—whether overages reflect conservative budgeting or actual economic growth affects both refund amounts and available funds
  • Local government impact: Unclear whether caps apply uniformly to all local entities or vary by jurisdiction; could disproportionately affect school districts and counties with growing populations needing infrastructure investment

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

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