Texas Comptroller Glenn Hegar has transferred $2.27 billion into the State Highway Fund and the Economic Stabilization Fund, commonly known as the “Rainy Day Fund.”
Each fund received more than $1.13 billion, or 50 percent of the total transfer. The economic reduction associated with the COVID-19 pandemic, paired with recent volatility in oil prices, contributed to the transfer amounts being lower than the $1.66 billion each fund received in fiscal 2020.
Hegar said the two funds are “critical pieces to ensure Texas’ continued economic strength.” He said the State Highway Fund is a key funding source for the state’s transportation infrastructure, while maintaining a healthy Rainy Day Fund to help move through unexpected economic downturns “has never been more clear than it has been in recent months.”
When fiscal 2020 ended on August 31, the “Rainy Day Fund” balance was $10 billion. With this most recent transfer, the new balance will be about $10.7 billion, not accounting for currently outstanding spending authority of approximately $1.86 billion. The balance in the fund will change as agencies spend down this remaining appropriation authority and investment earnings are realized.