Narrow permissible uses of the ESF to cover revenue shortfalls

Amend the Texas Constitution to narrow the permissible uses of the ESF to cover revenue shortfalls in the current biennium, debt retirement, one-time infrastructure projects, and expenses related to a state of disaster as declared by the governor.

When voters endorsed the creation of the ESF in 1988, they approved a constitutional amendment “establishing an economic stabilization fund in the state treasury to be used to offset unforeseen shortfalls in revenue.” Until the 83rd Legislature, with two narrow exceptions, the ESF has only been used to make supplemental appropriations related to revenue shortfalls: SB 7 (71S6, 1991), HB 7 (78R, 2003), HB 10 (79R, 2005), and HB 4 (82R, 2011). The two exceptions, SB 171 (73R, 1993) and SB 532 (73R, 1993), related to Texas Department of Criminal Justice (TDCJ) capacity issues and totaled less than $200 million.

Amending Article III, Section 49-g(m) of the Texas Constitution to specify that other than in times of budget shortfall for a current biennium, the ESF may only be used for retirement of existing debt, one-time infrastructure payments, or to cover expenses related to a state disaster as declared by the governor under the Texas Government Code §418.014 would achieve this goal.