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Relating to the authority of the comptroller regarding the management of the general revenue fund and the economic stabilization fund.
Estimated Two-year Net Impact to General Revenue Related Funds for SB 69, Committee Report 2nd House, Substituted: an impact of $0 through the biennium ending August 31, 2021.
However, there would be a positive impact of $247,377,000 to Economic Stabilization Fund through the biennium ending August 31, 2021.
SB 69 would make a number of changes to the Economic Stabilization Fund (also known as the Rainy Day Fund).
The bill would update the way that the sufficient balance of the ESF is determined. Rather than a legislative committee setting the amount, as is the current practice, the bill would codify the sufficient balance at 7% of the certified general revenue-related appropriations made for that fiscal biennium.
The bill would also make adjustments to investment of the ESF. The bill would require that at least one quarter of the ESF must be invested in a manner that assures liquidity of that amount. The comptroller would be required to adjust the investment of the ESF periodically as necessary to ensure that at all times at least one quarter of the ESF is invested in a manner that ensures liquidity of that amount. The bill would provide the comptroller with flexibility in investing the rest of the fund using the prudent investor standard. The purpose would be to earn better returns on the investment of the ESF.
Texas Action recommends remains neutral on SB 69 as it is an administrative bill which neither offends nor uplifts any of our liberty principles.
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