Amarillo included as Texas AG Paxton probes city budget transparency

Texas Attorney General Ken Paxton has launched a sweeping statewide investigation into municipal budget transparency and potential “unlawful” tax increases, a move that now encompasses several cities—including Amarillo. The effort is grounded in SB 1851, a state law that, as officials in Paxton’s office explain, “bars cities that do not strictly follow Texas’s financial statement audit and transparency requirements from raising taxes above the no-new-revenue rate.”

Paxton’s office says the initiative is driven by both compliance reviews and “citizen complaints.” Cities identified in this initial round include several of the state’s largest—Houston, San Antonio, Dallas, Fort Worth, and El Paso—as well as mid-sized and regional hubs such as Lubbock, Waco, Tyler, Texarkana, and Amarillo. Officials say letters requesting financial documents and audit information have already been sent to municipalities such as La Marque, Odessa, Tom Bean, and Whitesboro, with more expected as the review expands.

According to the Attorney General’s public statement, the goal is to ensure consistency in how local governments report their financial information and how they calculate potential tax increases. “Local officials will not be allowed to ignore the law, cover up their finances, and burden Texans with never-ending tax increases,” Paxton said. He added that cities “must prioritize transparency and minimizing the tax burden of every citizen across the state,” noting that while many municipalities already comply, his office is seeking to “ensure that the law is universally followed, taxpayers are respected, and local government is accountable to all Texans.”

For Amarillo, the investigation may have several practical implications. While no specific allegations have been made public regarding the city’s financial reporting, Amarillo—like other cities on the list—will now be required to respond to the Attorney General’s request for documents, audits, and related financial information. The scope of what Paxton’s office is seeking has not been detailed city by city, but in general the state is focusing on whether municipalities adhered to required audit timelines, posted mandated financial statements, and used correct calculations in determining tax rates compared to the no-new-revenue threshold.

In the short term, residents may notice increased attention on local budget processes, especially as Amarillo officials prepare responses to the state’s inquiries. Depending on the findings, the investigation could influence how future budgets are prepared or how financial reports must be published. For taxpayers, the most immediate effect will likely be heightened public conversation about how the city manages its revenues, expenditures, and annual reporting.

At the state level, the Attorney General’s office has also created an online complaint form allowing residents of any Texas city to report concerns about potential violations of SB 1851’s audit requirements. The form is part of what officials describe as an effort to increase citizen engagement and oversight in local financial governance.

Because the investigation spans nearly every region of Texas, it may take time before the public sees any major outcomes. For now, the review signals a renewed emphasis on transparency in city budgeting—and positions Amarillo among the cities expected to demonstrate full compliance with the state’s financial reporting rules.