On April 13, Texas Comptroller Glenn Hegar detailed his speculative two-tier approach to managing the Economic Stabilization Fund. The plan splits the ESF into two portions of funds: 1) a continuing balance equal to 8 percent of the general revenue spending which would grow as the state budget grows and would be invested to keep the ESF purchasing power in pace with inflation and 2) a remainder labeled the “Texas Legacy Fund” which would receive any new ESF dollars above the tier one 8 percent continuing balance and would operate to achieve a higher rate of return as well as provide dedicated annual earning disbursements.
