LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 1, 2025 TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SJR4 by Schwertner (Proposing a constitutional amendment providing for the maximum amount of money allowable in the economic stabilization fund.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SJR4, As Introduced: a negative impact of ($191,689) through the biennium ending August 31, 2027. In addition, the joint resolution would result in a negative impact to General Revenue Related Funds of ($6,616,583,000) through the biennium ending August 31, 2029. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($191,689)2027$02028($3,193,589,000)2029($3,523,783,000)2030($3,724,443,000)All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund - Reserve for ESF Transfer1 Probable Revenue (Loss) fromGeneral Revenue Fund - Interest Income1 Probable Revenue Gain fromEconomic Stabilization Fund - Transfer from GR599 Probable Revenue Gain fromEconomic Stabilization Fund - Interest and Investment Income5992026$0$0$0$02027$0$0$0$02028($3,193,589,000)$0$0$02029($3,422,994,000)($100,789,000)$3,193,589,000$282,072,0002030($3,617,836,000)($106,607,000)$3,422,994,000$456,514,000Fiscal Year Probable (Cost) fromGeneral Revenue Fund12026($191,689)2027$02028$02029$02030$0 Fiscal AnalysisThe joint resolution would propose an amendment to the Texas Constitution to increase the maximum amount of money allowable in the Economic Stabilization Fund (ESF) from 10 percent of revenue deposited to the General Revenue Fund in the previous biennium to 15 percent of that amount.The proposed amendment would be submitted to voters at an election to be held November 4, 2025; if adopted, it would take effect September 1, 2028
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 1, 2025
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SJR4 by Schwertner (Proposing a constitutional amendment providing for the maximum amount of money allowable in the economic stabilization fund.), As Introduced
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SJR4 by Schwertner (Proposing a constitutional amendment providing for the maximum amount of money allowable in the economic stabilization 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
SJR4 by Schwertner (Proposing a constitutional amendment providing for the maximum amount of money allowable in the economic stabilization fund.), As Introduced
SJR4 by Schwertner (Proposing a constitutional amendment providing for the maximum amount of money allowable in the economic stabilization fund.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SJR4, As Introduced: a negative impact of ($191,689) through the biennium ending August 31, 2027. In addition, the joint resolution would result in a negative impact to General Revenue Related Funds of ($6,616,583,000) through the biennium ending August 31, 2029.
Estimated Two-year Net Impact to General Revenue Related Funds for SJR4, As Introduced: a negative impact of ($191,689) through the biennium ending August 31, 2027. In addition, the joint resolution would result in a negative impact to General Revenue Related Funds of ($6,616,583,000) through the biennium ending August 31, 2029.
In addition, the joint resolution would result in a negative impact to General Revenue Related Funds of ($6,616,583,000) through the biennium ending August 31, 2029.
General Revenue-Related Funds, Five- Year Impact:
2026 ($191,689)
2027 $0
2028 ($3,193,589,000)
2029 ($3,523,783,000)
2030 ($3,724,443,000)
All Funds, Five-Year Impact:
2026 $0 $0 $0 $0
2027 $0 $0 $0 $0
2028 ($3,193,589,000) $0 $0 $0
2029 ($3,422,994,000) ($100,789,000) $3,193,589,000 $282,072,000
2030 ($3,617,836,000) ($106,607,000) $3,422,994,000 $456,514,000
2026 ($191,689)
2027 $0
2028 $0
2029 $0
2030 $0
Fiscal Analysis
The joint resolution would propose an amendment to the Texas Constitution to increase the maximum amount of money allowable in the Economic Stabilization Fund (ESF) from 10 percent of revenue deposited to the General Revenue Fund in the previous biennium to 15 percent of that amount.The proposed amendment would be submitted to voters at an election to be held November 4, 2025; if adopted, it would take effect September 1, 2028
Methodology
Under Section 49-g (g) currently, the maximum amount of money allowable (cap) in the ESF is set at 10 percent of revenue deposited, as defined by the section, to the General Revenue Fund (GR) in the previous biennium. Based on the 2026-27 Biennial Revenue Estimate, the ESF will reach its cap at the beginning of FY 2026. Once the cap is reached, severance tax transfers from GR to the ESF will cease and ESF interest is credited to GR. Increasing the cap from the current 10 percent to the proposed 15 percent would allow the ESF to begin receiving severance tax transfers and interest earned on the cash balance of the fund, assuming an ESF balance and current 10 percent cap would continue to disallow allocations until the effective date of this resolution. Transfers to the ESF would resume in fiscal 2029 (reserved for transfer in fiscal 2028).The cost to the state for publication of the resolution is $191,689.
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