In the current issue of the Texas Comptroller’s Fiscal Notes, the same economic factors that have given the 88th Legislature an unprecedented about of money for general-purpose spending are also generating record high revenues for the Economic Stabilization Fund, commonly called the Rainy Day Fund.
For the first time, the Comptroller’s office, in the 2024-25 Biennial Revenue Estimate (BRE), projects that the ESF in 2025 will hit the upper limit on its balance, which in each biennium can be no more than 10 percent of the amount of certain revenue deposited into the General Revenue Fund during the previous biennium. Comptroller Glenn Hegar, whose BRE sets parameters for the state budget, stresses the responsibility that goes along with unique funding opportunities.
“The revenue increases that we have seen truly have been historical and unprecedented. We have never seen anything like this in the past, and I don’t think we’ll see anything like this in the future,” Hegar says. “I am glad to see that lawmakers are giving careful thought to how this tremendous asset can be best put to work for Texans.”