Today the Joint Select Committee to Study the Balance of the Economic Stabilization Fund (ESF) met and unanimously adopted a motion that the ESF sufficient balance for the next three years should be $7 billion.
Last month voters approved sending half of the oil and gas production taxes heading into the ESF, also referred to as the Rainy Day Fund, to the State Highway Fund instead. When lawmakers approved legislation on Proposition 1 during a special session in 2013, the ESF Select Committee was established in order to address those concerns that withdraws from the fund could cause the balance to fall too low.
By setting the ESF balance at $7 billion, Co-Chair Sen. Jane Nelson, R-Flower Mound, noted it would ensure that $1.7 billion could be transferred to the State Highway Fund under Proposition 1, while also ensuring the state will not jeopardize its credit rating and maintain sufficient reserves for any unexpected needs in the future. The $1.7 billion will be transferred to the State Highway Fund this month.
See the attachment below for the presentation by the Legislative Budget Board