LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 11, 2023 TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SJR56 by Schwertner (Proposing a constitutional amendment to raise the maximum allowable amount of money in the economic stabilization fund and provide that certain income from investments of that fund is to be retained in that fund.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SJR56, As Introduced : a negative impact of ($436,467,406) through the biennium ending August 31, 2025. In addition, the joint resolution would result in a negative impact to General Revenue Related Funds of ($8,417,984,000) through the biennium ending August 31, 2027. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2024($204,406)2025($436,263,000)2026($4,157,583,000)2027($4,260,401,000)2028($4,106,469,000)All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue Gain fromEconomic Stabilization Fund599 Probable (Cost) fromGeneral Revenue Fund12024$0$0($204,406)2025($436,263,000)$0$02026($4,157,583,000)$629,157,000$02027($4,260,401,000)$4,288,132,000$02028($4,106,469,000)$4,550,853,000$0 Fiscal AnalysisThe joint resolution would amend Sections 49-g (g) and (i) of Article III, Texas Constitution to raise the maximum amount (cap) in the economic stabilization fund (ESF) from an amount equal to 10 percent of the total amount--excluding investment income, interest income, and amounts borrowed from special funds--deposited in general revenue during the preceding biennium to 15 percent of that amount. Investment income credited to the fund after the effective date of the amendment would be excluded from the amount subject to the cap.The proposed amendment would be submitted to voters at an election to be held November 7, 2023.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 11, 2023
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SJR56 by Schwertner (Proposing a constitutional amendment to raise the maximum allowable amount of money in the economic stabilization fund and provide that certain income from investments of that fund is to be retained in that fund.), As Introduced
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SJR56 by Schwertner (Proposing a constitutional amendment to raise the maximum allowable amount of money in the economic stabilization fund and provide that certain income from investments of that fund is to be retained in that fund.), As Introduced
Honorable Joan Huffman, Chair, Senate Committee on Finance
Honorable Joan Huffman, Chair, Senate Committee on Finance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SJR56 by Schwertner (Proposing a constitutional amendment to raise the maximum allowable amount of money in the economic stabilization fund and provide that certain income from investments of that fund is to be retained in that fund.), As Introduced
SJR56 by Schwertner (Proposing a constitutional amendment to raise the maximum allowable amount of money in the economic stabilization fund and provide that certain income from investments of that fund is to be retained in that fund.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SJR56, As Introduced : a negative impact of ($436,467,406) through the biennium ending August 31, 2025. In addition, the joint resolution would result in a negative impact to General Revenue Related Funds of ($8,417,984,000) through the biennium ending August 31, 2027.
Estimated Two-year Net Impact to General Revenue Related Funds for SJR56, As Introduced : a negative impact of ($436,467,406) through the biennium ending August 31, 2025. In addition, the joint resolution would result in a negative impact to General Revenue Related Funds of ($8,417,984,000) through the biennium ending August 31, 2027.
In addition, the joint resolution would result in a negative impact to General Revenue Related Funds of ($8,417,984,000) through the biennium ending August 31, 2027.
General Revenue-Related Funds, Five- Year Impact:
2024 ($204,406)
2025 ($436,263,000)
2026 ($4,157,583,000)
2027 ($4,260,401,000)
2028 ($4,106,469,000)
All Funds, Five-Year Impact:
2024 $0 $0 ($204,406)
2025 ($436,263,000) $0 $0
2026 ($4,157,583,000) $629,157,000 $0
2027 ($4,260,401,000) $4,288,132,000 $0
2028 ($4,106,469,000) $4,550,853,000 $0
Fiscal Analysis
The joint resolution would amend Sections 49-g (g) and (i) of Article III, Texas Constitution to raise the maximum amount (cap) in the economic stabilization fund (ESF) from an amount equal to 10 percent of the total amount--excluding investment income, interest income, and amounts borrowed from special funds--deposited in general revenue during the preceding biennium to 15 percent of that amount. Investment income credited to the fund after the effective date of the amendment would be excluded from the amount subject to the cap.The proposed amendment would be submitted to voters at an election to be held November 7, 2023.
Methodology
The increase in ESF cap as proposed would result in increased transfers from oil and gas severance taxes and equivalent decreases in available general revenue. In addition, interest would be credited to the ESF cash balance that, pursuant to the current law cap, would be allocable to the general revenue fund. Under current law, investment income is credited to the fund and is not allocable to general revenue when the fund balance exceeds the cap, but it is not excluded from the measure of amount subject to the cap.The cost to the state for publication of the resolution is $204,406.
The cost to the state for publication of the resolution is $204,406.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD
JMc, KK, SD