LEGISLATIVE BUDGET BOARDLEGISLATIVE BUDGET BOARD E S F Ove r v i ew MARCH 2018, DOCUMENT ID: 5192

The Texas Economic Stabilization Fund (ESF) was established by the passage of a constitutional amendment in 1988. Since its establishment, deposits to the fund have totaled $20.9 billion. The Texas Legislature has passed eight bills appropriating $11.6 billion from the fund. The 2017 balance ($10.3 billion) is the largest among all state stabilization funds and third largest as a percentage of state expenditures (19.2%).

In November 2016 a sufficient balance in the ESF of $7.5 billion was adopted. If the balance falls below this amount, deposits to the ESF are increased until the balance is reestablished. The maxiumum balance for the 2018-19 biennium is $16.9 billion.

Historically, the ESF has been held in the Treasury Pool, a low risk, high liquidity cash equivalent fund. Beginning in 2016, a portion of the ESF exceeding the Sufficient Balance has been invested outside of the Treasury Pool in less liquid, higher yielding fixed income assets.

ESF ending balance vs. cap ( I N B I L L I O N S)

0.7%

0.0%

5.5%

1.7%

0.7%

0.2%

0.2%

0.2%

1.0%

1.4%

1.3%

2.9% 12

.1%

7.5%

4.9%

0.1% 4.4% 14

.3%

40.2

%

62.0

%

64.7

%

42.2

% 50.6

%

50.9

%

47.6

% 60.1% 60

.0%

63.5

%

62.0

%

66.4

%

$0.0

$2.0

$4.0

$6. 0

$8.0

$10. 0

$12. 0

$14.0

$16 .0

$18 .0

1990 1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

ESF Cap

Ending Balance

$10.3

1 0 %OF BIeNNiAL GR DEPOSITS

LEGISLATIVE BUDGET BOARDLEGISLATIVE BUDGET BOARD E S F Ove r v i ew MARCH 2018, DOCUMENT ID: 5192

r e v e n u e w h e re d o e s i t co m e f ro m? a p p r o p r i a t i o n s w h e r e d o e s i t g o?

Natural Gas Production Tax Transfer

Oil Production Tax Transfer

Unencumbered Balance Transfer

Interest Income

Investment Income

$9,791.8

$8,301.6

$1,800.1

$880.0

$113.6

Total (1990-2017) $20,887.2

Source TOTAL (MILLIONS)

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

1990 1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

revenue( M I L L I O N S )

Public Education

General Deficit Reduction

Economic Development

Health & Human Services

State Facilities Repairs & Deferred Maintenance

Disaster Relief

Corrections

One-time Grants to Local Entities

Judicial

$3,541.4

$3,198.7

$2,395.0

$1,126.8

$708.6

$302.6

$197.8

$170.3

$0.04

PURPOSE tOTAL (MILLIONS)

A N N U A L

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

1990 1993 2003 2005 2011 2013 2017

APPROPRIATIONS FROM ESFONLY MADE IN YEARS SHOWN

% OF ESF APPROPRIATED

46.9%

39.7%

8.6%

4.2%

0.5%

100.0%

% of total

30.4%

27.5%

20.6%

9.7%

6.1%

2.6%

1.7%

1.5%

0.0%

% of total

Total (1990-2017) $11,641.2 100.0%