Texas Comptroller Manual of Accounts - Fiscal 2012
Appropriated Fund 0346 – Permanent Higher Education Fund

The Legislature by general law may dedicate portions of the state's revenues to the creation of a dedicated higher education fund. The Legislature shall provide for administration of the fund, which shall be invested in the manner provided for investment of the Permanent University Fund. The principal of the higher education fund shall never be expended. At the beginning of the fiscal year after the fund reaches $2 billion, as certified by the Comptroller, the dedication of General Revenue funds shall cease. At the beginning of the fiscal year after the fund reaches $2 billion, and each year thereafter, 10 percent of the interest, dividends and other income accruing from investments during the previous fiscal year shall be deposited and become part of the principal of the fund. Out of the remainder of the annual income, there shall be appropriated an annual sum sufficient to pay the principal and interest due on the bonds and notes issued and the balance shall be allocated for appropriations made in Art. VII, § 17(a) of the Texas Constitution.