Testimony for HB 73 Submitted to the Texas House Committee on Intergovernmental Affairs

Position Statement: I support HB 73 as a critical first step to rein in local government spending and property tax growth, with recommended improvements to ensure consistency, accountability, and stronger taxpayer protections.
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Written Testimony of Dr. Vance Ginn
Before the House Committee on Intergovernmental Affairs
In Support of House Bill 73 (With Recommended Improvements)
August 22, 2025

Chairman Bell and Members of the Committee:

My name is Dr. Vance Ginn, president of Ginn Economic Consulting and a proud native Texan. Thank you for the opportunity to submit written testimony in support of House Bill 73.

Texans are burdened with some of the highest property taxes in the nation, and while the state has provided relief, those gains are too often erased by unchecked local government spending. With no limit in place, local budgets continue to climb, driving taxes higher and debt upward. Families and businesses deserve better.

That is why HB 73 is so important. For the first time, it establishes a maximum local spending limit tied to state population growth plus inflation. This is the most reliable and simple measure of sustainable budgeting. It ensures the government doesn’t grow faster than the people’s ability to pay.

Using a statewide standard matters. HB 46, also before you, applies population and inflation at every local level, which creates a patchwork of diverse rules. HB 73 avoids this by adopting one clear statewide metric, the same measure Texas should apply at the state level in both statute and constitution. Consistency matters for taxpayers and accountability.
Still, HB 73 can be improved in three ways:

1. Require a two-thirds vote at a uniform November election to exceed the cap, similar to HB 46.
2. Close loopholes such as disaster exemptions. Texans need more money in their pockets during hard times, not larger local budgets.
3. Cover all spending and all jurisdictions, including debt payments. Without this, local governments will simply shift spending to avoid the cap.

These changes would ensure that every Texan, regardless of where they live, has certainty about what their government will spend—and therefore what their tax burden will be.

Econ 101 teaches us that the government has no money of its own. Every dollar spent is first taken from taxpayers through taxes, debt, or inflation. The real problem is not revenue but spending. When spending exceeds population growth and inflation, it erodes private sector growth, leaving families poorer and businesses weaker. By contrast, a sound limit keeps government in check, preserves economic opportunity, and strengthens prosperity.

HB 73 is a strong step in the right direction. With the improvements I’ve outlined—drawing from HB 46’s two-thirds provision, closing loopholes, and ensuring broad coverage—Texas can lead the nation in fiscal discipline. We can give families peace of mind that relief passed in Austin won’t be erased by excess at the local level.

Thank you for your leadership on this important issue and for the chance to share my perspective.