A new report by the Texas Public Policy Foundation found that spending growth in the state’s 10 most populous cities and counties studied exceeded a combined population and inflation benchmark from 2015 to 2025.
John Bonura, a policy analyst for TPPF’s Taxpayer Protection Project and author of the report, argues that local government spending should generally not grow faster than population and inflation.
“Local governments across Texas have been spending outside the bounds of what is considered reasonable, placing an increasingly unaffordable burden on taxpayers as a result. Reasonable spending may be defined by how close changes in expenditure growth are to increases in population and inflation. The difference between adopted budgets and actual changes in population serves as ran indication that there is at least some measure of mismanagement,” Bonura wrote.
Bonura cited Austin’s controversial $1.1 million logo redesign as an example of waste, noting that officials threatened to cut emergency services after residents rejected a massive tax hike.
“The City of Dallas has even asked its taxpayers to support its record $5.2 billion budget, ‘that fails to provide much-needed tax relief for Dallas residents,’ according to remarks from a council member to CBS News,” Bonura wrote. “Unfortunately, there are no mechanisms outside of elections to prevent excesses in local government spending.”
Texas has four constitutionally mandated spending limits, including a pay-as-you-go limit, a restraint on the growth of appropriations from certain state taxes based on the estimated growth of the state’s economy, a limit on welfare spending, and a limit on tax-supported debt. State law limits growth in consolidated General Revenue appropriations based on population growth and inflation.
Bonura argues that similar spending restraints should apply to local taxing entities.
“From 2015 to 2025, spending by city governments generally increased at a rate faster than population growth and inflation (P&I). Of the ten cities observed, eight had spending that outpaced their P&I. The City of Dallas had the largest gap between the P&I measurement and actual budget growth, with a 37 [percent] difference, while Lubbock had the slowest growth in spending, as its spending grew 16 [percent] slower than its P&I,” Bonura wrote.
Based on Bonura’s findings, county spending is in a similar state. “County spending, like city spending, generally increased more rapidly than increases in population and inflation from 2015 to 2025. Of the 10 counties observed, eight of them had spending that outpaced P&I.”
Fort Bend County saw the “most rapid growth,” with Bonura noting its budgets grew “more than 191 [percent] over the last decade.” Collin County had the slowest, as its budget grew 76 percent and its P&I grew by 87 percent.
Arguing that those spending levels are unsustainable, Bonura proposed several recommendations for lawmakers in the upcoming 90th Legislative Session.
His suggestions include imposing local spending limits tied to population growth and inflation, closing loopholes in Texas’s existing property tax revenue limitation by expanding the limit to account for other sources of revenue, requiring third-party efficiency audits, and demanding better budgeting.
Gov. Greg Abbott has also made local spending restraint and property tax reform a priority heading into the 90th Legislative Session.
“When it comes to property taxes, Texans’ message is clear: the current status quo is unacceptable and reform is long overdue. That is why the 90th Legislative Session will be the property tax reform session. We will advance bold, enduring solutions to deliver real property tax relief for Texans. With the conservative leadership and policy expertise of the Texas Public Policy Foundation, we will rein in runaway local government spending and empower Texans to keep more of their hard-earned money,” said Abbott.
The 90th Legislative Session is slated to begin on January 12, 2027.
