AUSTIN, Texas (KAMR/KCIT) — Officials with the office of Texas Comptroller Glenn Hegar announced Tuesday that the transfer of about $7.3 billion into the state’s Highway Fund and the state’s Economic Stabilization Fund was recently completed, increasing each of the respective funds by around $3.64 billion.
According to a news release from Hegar’s office, the transfer amounts are based on crude oil and natural gas production tax revenues in excess of 1987 collections. Officials said if either tax “generates more revenue than the 1987 threshold, an amount equal to 75 percent of the excess is transferred.”
In 2014, an amendment was approved by Texas residents, requiring that half of the severance taxes would be allocated to the ESF, while the remainder should go to the SHF for the use of non-toll highway construction, maintenance, and right-of-way acquisition.
“Texas’ strong economic recovery continues but inflation and supply chain issues coupled with ongoing geopolitical unrest point to uncertainty on the horizon,” Hegar said in the release. “Additionally, our economic strength and business-friendly environment continue to attract people and businesses to Texas. In order to meet the needs of these new Texans and continue to attract business investment, it is critical that we invest in the infrastructure needed to keep our state fiscally healthy. The ESF and SHF are critical assets for the people of Texas, and these transfers represent a tremendous opportunity to continue to invest in Texas’ future and safeguard our state against uncertainty.”
For more information, visit the Texas Comptroller’s Office’s website.