Texas Comptroller Glenn Hegar completed the transfer of more than $2.91 billion into the State Highway Fund (SHF) and the Economic Stabilization Fund (ESF) commonly known as the “Rainy Day Fund” on November 30. Each fund received nearly $1.46 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.
According to the Texas Constitution, the ESF transfer must occur within 90 days after the end of the fiscal year. When fiscal year 2021 ended on August 31, the ESF balance was $10.3 billion.
With this most recent transfer, the new balance will be about $11.4 billion, not accounting for currently outstanding spending authority of approximately $1.43 billion. The balance in the ESF will change as agencies spend down this remaining appropriation authority and investment earnings are realized.