A state lawmaker plans to propose legislation in the upcoming 90th Legislative session that would allow temporary state intervention into cities that have demonstrated chronic failures. The state would then help restore “fiscal discipline, public safety, rule of law, and public trust.”
State Rep. Tom Oliverson (R–Cypress) posted on social media that he has been “working on Municipal Receivership” and that legislation is “inbound” ahead of the next session. He says that the mechanism “is a tremendous tool for accountability with local governments” and is “useful under a variety of circumstances.”
Twenty states have already implemented some form of municipal receivership, which would work similarly to Texas’ intervention in school districts that fail to meet obligations outlined by the state.
Once issues are resolved and the local government begins meeting required benchmarks, governance would be restored to local officials.
“Texas taxpayers have seen too many examples of local governments placing radical ideology or unacceptable mismanagement ahead of basic responsibilities,” according to Texans for Fiscal Responsibility. “Cities spend millions on projects that provide little public benefit while asking taxpayers to approve exorbitant bond packages.”
“Other cities have openly challenged state law, forcing costly legal battles paid for with taxpayer dollars,” TFR noted. “Meanwhile, some communities continue to struggle with rising violent crime, deteriorating infrastructure, and growing debt, even as property tax bills remain high.”
TFR suggested standards for triggering receivership could include “persistent fiscal mismanagement, repeated violations of state law, refusal to cooperate with immigration enforcement, chronic violent crime, or other failures that threaten the safety, rights, or financial well-being of Texans.”
States that have implemented municipal receivership have seen success in stabilizing finances and restoring services.
“Municipal receivership should remain rare,” TFR argued. “But when a local government consistently fails to protect citizens, enforce the law, and responsibly steward public resources, Texas should not stand by, because when major centers of commerce and civil life fail or fall into disrepair, the entire state suffers.”
Lawmakers can begin filing legislation for the upcoming 90th Legislative Session on November 9, 2026.
The 90th Legislature will convene on January 12, 2027.
