Texas Comptroller Glenn Hegar announced Monday he recently completed the transfer of $3.33 billion into the State Highway Fund (SHF) and the Economic Stabilization Fund (ESF; commonly known as the “Rainy Day Fund”).

Each fund received more than $1.66 billion, or 50 percent of the total transfer.

The transfer amounts are based on crude oil and natural gas production tax revenues in excess of 1987 collections.

If either tax generates more revenue than the 1987 threshold, an amount equal to 75 percent of the excess is transferred.

In November 2014, voters approved a constitutional amendment allocating at least half of these severance taxes to the ESF, with the remainder going to the SHF for use on non-toll highway construction, maintenance and right-of-way acquisition.{/span}

{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”}According to the Texas Constitution, the ESF transfer must occur within 90 days after the end of the fiscal year. When fiscal 2019 ended on Aug. 31, the ESF balance was $10.1 billion.{/span}

{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”}With this most recent transfer, the new balance will be about $11.45 billion, not accounting for currently outstanding spending authority of approximately $3.74 billion. The balance in the ESF will change as agencies spend down this remaining appropriation authority and investment earnings are realized.{/span}

{span style=”font-family: ‘Arial’,sans-serif; color: black;”}Due to{/span}{span}{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”} {/span}{/span}{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”}Senate Bill 69, championed by Hegar and signed into law during the last{span} {/span}{/span}{span style=”font-family: ‘Arial’,sans-serif; color: black;”}l{/span}{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”}egislative session, the Comptroller{/span}{span style=”font-family: ‘Arial’,sans-serif; color: black;”}‘s office{/span}{span}{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”} {/span}{/span}{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”}will{span} {/span}{/span}{span style=”font-family: ‘Arial’,sans-serif; color: black;”}be able{/span}{span}{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”} {/span}{/span}{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”}to grow the ESF by investing{span} {/span}{/span}{span style=”font-family: ‘Arial’,sans-serif; color: black;”}its{/span}{span}{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”} {/span}{/span}{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”}funds more prudently.{/span}{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”} {/span}

{span style=”font-family: ‘Arial’,sans-serif; color: #111111;”}“Senate Bill 69 allows me to move up to 75 percent of the Rainy Day Fund into prudent, but higher-yield, investments that would maintain the state’s purchasing power,” Hegar said. “The Rainy Day Fund is a tremendous asset for the taxpayers of Texas, and I want to protect that asset to ensure it will be there for future generations.”{/span}


(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.