Senate Finance Chair Jane Nelson recently requested an opinion from the Attorney General, inquired on the ability to delay a deposit to the State Highway Fund (SHF) in an attempt to free up $2.5 billion more in the current budget process. Attorney General Ken Paxton, agreed with Nelson’s suggestions, noting a judge would overlook a small delay in that transfer.
“If the comptroller is unable to calculate the specific amount of the required deposit before the end of the fiscal year, a court would likely conclude that doing so as soon as possible thereafter would result in acceptable, substantial compliance with the constitution provision,” he wrote.
The Texas Constitution provides that the deposit of $2.5 billion of sales tax revenue to the SHF shall be made into the treasury the same fiscal year as collected – provided the collections exceed a certain threshold. In discussion with Senator Nelson, Comptroller Glenn Hegar stated that a conclusion would be to transfer sales tax revenue to the SHF in September, rather than August, to allow for actual net revenue fiscal year end calculations.