TPPF Unveils Tax, Spending and Local Government Policy Priorities for 90th Legislative Session

AUSTIN – The Texas Public Policy Foundation’s Taxpayer Protection Project released its full agenda for the 2027 90^th Session of the Texas Legislature. This campaign will advocate for fiscal policies to empower taxpayers and rein in the out-of-control spending and taxation habits of local governments throughout Texas.

“Despite record property tax cuts by the state over the last two legislative sessions, Texans are not feeling relief because local governments continue to raise their property tax rate, take on large amounts of debt, and recklessly spend. Texans deserve a system that produces the best results at the most cost-effective price for taxpayers,” said TPPF’s James Quintero.

“Massive spending increases and mounting debt are driving Texans to lose trust in their local governments and it’s time for the state to limit their ability to punish Texans. Taxpayers need to be empowered to hold their local governments accountable after years of being taxed out of house and home,” said TPPF’s Jose Melendez.

The Taxpayer Protection Project’s full Liberty Action Agenda for the 90^th regular session includes:

Uniform VATRE Threshold: Proposes setting a uniform voter-approval tax rate election (VATRE) threshold of 2.5% for all political subdivisions to align with school district limits.

Reining in Local Spending: Caps city and county spending growth to population plus inflation to control local government expansion.

Property Tax Relief and Pathway to Elimination: Continues buying down school M&O property taxes to move Texas toward eliminating property taxes.

Public Money for Public Purposes: Require local governments to spend or direct public money to public purposes only. Tighten the current constitutional and statutory definition of public use and provide for enforcement mechanisms.

Local Government Balanced Budget Requirement: Require local governments to adopt balanced budgets to prevent spending beyond their means.

Local Government Debt Limitation: Impose statutory or constitutional limits on the amount of debt local governments can accrue to encourage fiscal discipline.

Require a November Uniform Election Date for ALL elections: Mandates elections occur during high-turnout November elections to increase accountability.

Allow Local Taxing Units Unlimited Authority to Determine Amount of Homestead Exemption: Proposes removal of the 20% cap on local homestead property tax exemptions to allow greater local discretion and competition.

Revise the 3.5%/2.5% Local Government Revenue Trigger to Include All Sources of Revenue: Closes loopholes in tax revenue caps by including fees and grants in the calculation of local revenue growth triggers.

Strengthening the Voter Information Document (VID). Amend existing law to improve the usefulness and accuracy of the VID. Address methodological gaming and require political subdivisions to fully disclose all underlying assumptions and methodology.

Core Function Municipal Efficiency Act: Requires municipalities to adhere to core service areas and subjects any spending beyond those to annual audits and public review.

Eliminate State Business Margins Tax / Franchise Tax: Abolishes the gross revenue-based franchise tax to ease burdens on businesses and stimulate investment.

Raise Bond Approval Thresholds and Limit Bond Elections: Raises bond approval thresholds and limits bond elections to even-year general elections to reduce frivolous local spending.

Stop Issuing Long-Term Debt for Depreciated Property: Prohibits local governments from issuing long-term debt for property that depreciates before the bond matures.

Cash Reserve Limit for Political Subdivisions: Would cap the amount of cash reserves local governments may hold to prevent circumvention of spending limits.

Reform Property Insurance to Ensure Access to Coverage: Calls for reforms to address rising home insurance premiums and limited availability, particularly along the Texas coast.

Expand Texas DOGE: Calls for expanding Texas’ newly created DOGE office to review the public expenditures of state agencies, universities, and local governments and recommend legislative reforms. Require governmental entities to comply with any audit and provide the documentation and detail necessary to understand how public funds are being collected and spent

Audit Homelessness Programs and Services: Homelessness is a complex issue that requires more than a one-size-fits-all approach and unlimited funding. To ensure the effectiveness of state and local programs as well as community services that receive public funding, policymakers should evaluate the efficacy of these efforts based on performance measures and audited data.