According to a news release issued on Wednesday, the Texas Comptroller’s Office estimates that the state’s Rainy Day Fund will exceed its maximum for the first time soon.
The Texas Comptroller Glenn Hegar, the extraordinary economic factors that have provided the 88th Legislature with an unprecedented amount of money for general-purpose spending are also generating record-high revenues for the Texas Economic Stabilization Fund, which is the state savings account that is commonly referred to as the Rainy Day Fund. According to Hegar, the income increases observed by the company have been historical and have never been seen before.
“In all of our years, we have never been a part of anything remotely similar to this, and I seriously doubt that we will ever be a part of anything remotely similar to this again.”
In the 2024-25 Biennial Revenue Estimate, the Comptroller’s Office projects that the ESF will hit the upper limit on its balance in 2025. This limit states that the ESF’s balance in each biennium can be no more than 10% of the amount of specific revenue deposited into the General Revenue Fund during the preceding biennium.
The announcement, it is anticipated that the fund will increase to more than $27 billion by the fiscal year 2025, up from less than $11 billion at the end of the fiscal year 2022.
As a result of this cap, approximately $690 million that was going to be contributed to the fund will instead be kept as general revenue; however, it is anticipated that the ESF will receive $9.8 billion.
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According to the Comptroller’s Office, the Constitution of Texas grants the Legislature the authority to withdraw from the ESF with a vote of three-fifths or more.
Although the Emergency Stabilization Fund (ESF) has a historically significant balance, this money belongs to the people of Texas, and we must always be prepared to use those funds to address the needs of the people.
Hegar stated, “I am happy to see that politicians are giving thoughtful thought to how this incredible asset may be put to work for Texans in the most beneficial way possible.”
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