AUSTIN — On Dec. 11, a Senate-House joint committee empaneled to adopt a sufficient balance for the state’s “rainy day fund” approved $7 billion as the floor for it.
Properly titled the Economic Stabilization Fund, the oil and gas tax-fueled pool of money was created by constitutional amendment in 1988 when oil was selling as low as $10 a barrel, causing state coffers to run thin. Calculated at $6.7 billion last August, the fund previously had no required minimum. The maximum the fund may hold is capped at 10 percent of the state’s general revenue during the previous two-year budget cycle.
Proposition 1, passed by Texas voters on Nov. 4, was “The constitutional amendment providing for the use and dedication of certain money transferred to the state highway fund to assist in the completion of transportation construction, maintenance, and rehabilitation projects, not to include toll roads.”
The measure requires the state to split the oil and gas revenue between the rainy day fund and state highway fund. Because of the booming oil and gas industry, some $1.74 billion is to be transferred into the highway fund in 2015.
"This transfer will provide a much-needed boost to transportation, which affects everything from commerce and economic development to public safety and our quality of life," said Sen. Jane Nelson, R-Grapevine, co-chair of the joint committee. “The floor also ensures that Texas has sufficient reserves for any unexpected difficulties in the future. It also allows us to address our vital infrastructure needs in a fiscally responsible way."
TxDOT senses optimism
Texas Department of Transportation last week announced the agency “is riding a wave of optimism as citizens, national transportation groups and stakeholders have noted great improvements in Texas just in time for state lawmakers to convene for the 84th Legislative session.”
According to a Dec. 9 TxDOT news release, “Many have stated that transportation is a key issue for legislators in 2015, and by passing Proposition 1 with an 80 percent approval, voters have entrusted TxDOT with the job of addressing congestion and keeping our roads safe.”
Sales tax revenue is up
State Comptroller Susan Combs on Dec. 10 reported state sales tax revenue in November of $2.66 billion, up 10.7 percent compared to November 2013.
Combs said gains were led by oil and natural gas-related sectors and collections from retail trade and restaurants also rose strongly.
Cities, counties, transit systems and special purpose taxing districts will receive December local sales tax allocations totaling $645.9 million, up 11.4 percent compared to December 2013, Combs added.
School ratings released
Texas Education Agency on Dec. 3 announced its release of the final 2014 state accountability system ratings for more than 1,200 school districts and charters and more than 8,500 campuses.
Final ratings are issued following an appeals process provided to districts and charters that contested the district or campus ratings originally announced in August, TEA explained.
Final 2014 ratings show 90.2 percent of the state’s 949 school districts and 158 charters achieved the rating of “Met Standard.”
Alert: Lock your vehicle
Texas Department of Public Safety on Dec. 11 encouraged drivers to take necessary precautions to protect their vehicles from possible theft during holiday season.
DPS Director Steven McCraw said, “December is one of the busiest months for auto thefts, and during this holiday shopping season, it is important that any valuables in a vehicle are out of sight.”
According to the DPS, 5,395 automobiles, pickups and motorcycles were recorded stolen in December 2013, “making it the third-highest month for vehicle thefts that year behind July and August.” In addition, more than 13,100 vehicle burglaries were reported and $12.2 million in property stolen last December.
Permit process speeds up
Texas Railroad Commission on Dec. 11 announced its Information Technology Modernization Program is making the process for granting oil and gas drilling permits faster.
“Expedited permit processing was reduced from a peak of 30 days experienced with a surge in industry activity in the spring of this year to a one-day processing rate in November,” according to the petroleum-regulating agency.
Commissioner David Porter said that in addition to the improved technology, the agency has hired additional temporary staff “to help meet the demands of the rising drilling permit applications and to assist our hardworking permanent staff.”
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