Issue Date: 1989-01-24
Revised Date: 2024-01-01

Legal Citations

Origin:

1988 on adoption of H.J.R. 2 by the voters on November 8, 1988

Purpose

Revenue to the fund consists of transfers from General Revenue Fund 0001 of:

  1. At least one-half of an amount equal to 75 percent of oil production and natural gas production tax revenues in any fiscal year that exceeds fiscal 1987 collections.
  2. One-half of any unencumbered General Revenue surplus at the end of each biennium.

Fund may include any other money appropriated to the fund by the legislature. Fund may be used to eliminate temporary cash deficiency in Fund (0001). Legislature may appropriate the fund for any purpose if two-thirds vote of members present in each house is received.

The Constitution caps the maximum balance at an amount not to exceed 10% of GR deposited during the previous biennium excluding investment income, interest income and amounts borrowed from special funds.

Minimum balance is equal to 7% of certified General Revenue-related appropriations made for the fiscal biennium. The balance may be invested by the Comptroller with 10% of the balance invested in a manner that ensures liquidity.

H.J.R. 3, 88th Leg., R.S., approved by voters on November 7, 2023, appropriated all Economic Stabilization Fund interest, dividends, and investment earnings during fiscal 2023 to the Texas University Fund (TUF) in fiscal 2024, up to $100 million. Beginning in fiscal 2025, the previous fiscal year’s earnings appropriated from the ESF to the TUF may be increased based on the Consumer Price Index, not to exceed 2%.

Classification Group 02: Constitutional Funds Expendable for a Specific Purpose [?]
Depository Interest Retained in appropriated fund.
Disposition of Balance Accumulative
Appropriation Technique Legislative Action

Administering Agencies

Financial Activity

To view this appropriated fund's current revenue and expenditure activity by agency or comptroller object code, visit the following links:

Note

Prior to November 2014, Fund 0599 received the entire amount transferred from GR that was equal to 75% of excess oil and gas revenues above the 1987 level. H.B. 1 and S.J.R. 1, 83rd Leg., 3rd C.S. split the 75% transfer to deposit at least one-half to Fund 0599 and the remainder to the State Highway Fund 0006. This was approved by the voters in November 2014.

H.B. 1, 83rd Leg., 3rd C.S. added provision for determining Fund 0599 sufficient balance by legislative committee.

Changes made by H.J.R 3, 88th Leg., R.S. effective January 1, 2024.

H.B. 903, 84th Leg., R.S. added investment of amounts above minimum balance.

S.B. 69, 86th Leg., R.S. changed minimum balance to 7% calculation and amended the Comptroller's investment authority. Minimum balance provisions expire December 31, 2034.

S.B. 1246, 88th Leg., R.S. reduces required liquidity balance from 1/4 of balance to 10%.

H.B. 2230, 88th Leg., R.S. extends minimum balance provision expiration to December 31, 2042.

H.J.R. 3, 88th Leg., R.S., appropriates ESF interest, dividends, and investment earnings to the TUF.

USAS Values

USAS Title ECONOMIC STABILIZATION FUND
Consolidated Fund
State Fund Group 02 - CONSTITUTIONAL FDS EXP FOR SPECIFIC PURP
USAS Status A
Created by the state's constitution or receiving constitutionally dedicated revenue and expended for a specific purpose.