Waco staff outline impacts from 89th Texas Legislature and special sessions

Ashley, Waco’s chief of staff, presented a summary of city‑relevant outcomes of the 89th Texas Legislature and the governor’s special sessions during the Sept. 2 work session and highlighted items that are effective now, items that will require local implementation and topics still in play.

Ashley said most bills from the regular session took effect Sept. 1 and that staff is tracking outstanding issues in the special session. She reviewed several items with local impact: Senate Bill 1194 added the city and McLennan County to the Central Texas Water Alliance; the state budget included a $10 million appropriation for the Texas Rangers Hall of Fame and Museum to be administered through the Texas Department of Public Safety; and $2.5 million per year (a total of $5 million for the biennium) was appropriated for the Heart of Texas Behavioral Health Network to support local mental health resources.

On municipal finance and tax policy, Ashley said the legislature agreed on a business personal property exemption of $125,000 (up from $2,500), a change she said would likely produce roughly a $1.7 million revenue reduction for the city. The legislative package also included an increase in competitive‑bidding thresholds: the state raised the informal competitive‑bidding threshold from $50,000 to $100,000 under Senate Bill 1173, effective Sept. 1. Ashley also told Council that House Bill 1522 altered the city‑agenda posting timeline; instead of a 72‑hour rule the city must follow a three business‑day practice for posting agendas and materials.

Ashley outlined several items still active in the special session that could affect city operations if passed in their proposed forms. Those include proposals to tighten the voter‑approval threshold for property‑tax increases (a governor priority), a proposed anti‑lobbying measure that would limit cities’ ability to engage outside advocacy organizations, and bills that would cap municipal expenditure growth tied to population and inflation. She said the anti‑lobbying bill (Senate Bill 13 in the special session) had passed the Senate and remained in House committees. Staff warned that some measures, if enacted, could constrain municipal budgeting and local permitting authority.

Staff described ongoing work to translate legislative changes into local ordinances and administrative practice; examples included zoning and land‑use code updates tied to bills on development review and accessory dwelling rules, plus adjustments to permit and notice requirements. Council members and staff emphasized the continued role of the Texas Municipal League as a resource for tracking and interpreting bills. Ashley recommended continued monitoring of the special session and follow‑up briefings for Council if the legislature acts on outstanding topics.

Council questions addressed who administers the Texas Rangers appropriation (DPS was identified as the recipient, staff said they will coordinate with DPS), whether the behavioral health appropriation will continue beyond the biennium (staff said it appears to be a special‑session allocation, not a guaranteed base appropriation), and the city’s likely budget exposure from the business personal property exemption.