Texas, December 10, 2025
Texas Attorney General Ken Paxton has begun a statewide investigation into nearly 1,000 cities to ensure compliance with financial transparency laws. The investigation aims to enforce Senate Bill 1851, which prohibits cities from raising property taxes above certain limits if they fail to meet financial audit and transparency requirements. Following concerns from previous city investigations, the initiative seeks to enhance accountability and fiscal responsibility among Texas municipalities.
Texas Attorney General Initiates Statewide Financial Transparency Investigation
Austin, Texas — Texas Attorney General Ken Paxton has launched a comprehensive investigation into nearly 1,000 cities across the state to ensure compliance with financial transparency laws and to prevent unlawful property tax increases. This initiative targets major urban centers, including Dallas, Fort Worth, Houston, San Antonio, and El Paso, among others.
Scope of the Investigation
The investigation focuses on enforcing Senate Bill 1851, a state law that prohibits cities from raising property taxes above the no-new-revenue rate if they fail to adhere to state-required financial audits and transparency standards. Under this law, cities must conduct annual financial audits and publish comprehensive financial statements within 180 days after the end of their fiscal year. Non-compliance with these requirements can result in restrictions on property tax increases.
Background and Rationale
Attorney General Paxton’s office initiated this statewide review after earlier investigations into cities such as La Marque, Odessa, Tom Bean, and Whitesboro revealed consistent failures to meet financial reporting obligations. These findings prompted concerns about potential unlawful tax increases and a lack of transparency in municipal financial practices. The current investigation aims to address these issues proactively, ensuring that all Texas cities comply with financial transparency laws and maintain fiscal responsibility.
Implications for Affected Cities
Cities under investigation are required to provide financial documents and audit information to the Attorney General’s office. Failure to comply with these requests may lead to legal consequences, including restrictions on property tax increases. Municipalities are encouraged to respond promptly to avoid potential legal risks and to demonstrate their commitment to transparency and responsible fiscal management.
Next Steps
The Attorney General’s office has established a complaint form for residents to report suspected violations of financial transparency laws by local officials. This tool empowers citizens to participate actively in promoting accountability within their communities. Municipalities are advised to review their financial reporting practices and ensure full compliance with state laws to avoid potential legal challenges.
Frequently Asked Questions (FAQ)
What is the purpose of the statewide investigation initiated by Attorney General Ken Paxton?
The investigation aims to ensure that nearly 1,000 Texas cities comply with financial transparency laws and to prevent unlawful property tax increases. It focuses on enforcing Senate Bill 1851, which prohibits cities from raising property taxes above the no-new-revenue rate if they fail to adhere to state-required financial audits and transparency standards.
Which cities are included in the investigation?
The investigation includes nearly 1,000 cities across Texas, with major urban centers such as Dallas, Fort Worth, Houston, San Antonio, and El Paso among those under review.
What are the requirements of Senate Bill 1851?
Senate Bill 1851 mandates that cities conduct annual financial audits and publish comprehensive financial statements within 180 days after the end of their fiscal year. Failure to comply with these requirements can result in restrictions on property tax increases.
What should municipalities do if they receive a request from the Attorney General’s office?
Municipalities are required to provide financial documents and audit information to the Attorney General’s office upon request. Prompt compliance is essential to avoid potential legal consequences and to demonstrate a commitment to transparency and responsible fiscal management.
How can residents report suspected violations of financial transparency laws?
Residents can use the complaint form provided by the Attorney General’s office to report suspected violations of financial transparency laws by local officials. This tool empowers citizens to participate actively in promoting accountability within their communities.
Key Features of the Investigation
| Feature | Description |
|---|---|
| Scope | Investigation into nearly 1,000 Texas cities, including major urban centers like Dallas, Fort Worth, Houston, San Antonio, and El Paso. |
| Focus | Enforcement of Senate Bill 1851, ensuring cities comply with financial audits and transparency standards to prevent unlawful property tax increases. |
| Requirements | Cities must conduct annual financial audits and publish comprehensive financial statements within 180 days after the end of their fiscal year. |
| Implications | Non-compliance may lead to legal consequences, including restrictions on property tax increases. |
| Resident Participation | Residents can report suspected violations using the complaint form provided by the Attorney General’s office. |
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