Even though the drop in oil prices seems to have crunched oil men and companies in our state, the Economic Stabilization Fund (Rainy Day Fund) that benefits from it seems to have plenty of money in the bank.
According to the State Comptroller’s Office, there is now a balance of $9.7 Billion in the account.
The Rainy Day Fund gets its money from oil and gas production taxes. It is always a subject of discussion when the state legislature meets to work on their budgets. Over the years, Texas has had its bad years with horrible deficits. That changed when the state won some big law suits against tobacco companies and it went back to a surplus. The Rainy Day Fund has been there over the past several years—just in case hard times come back. Many legislators, and school officials, argue that it should be used to fund schools. Others argue that it should be used for a myriad of other reasons. As of now, it is the largest such fund of any state in the nation.