SJR 41 Rainy Day Fund Cap

The bill:  SJR 41 by Seliger  Proposing a constitutional amendment to provide for foregoing the transfer of oil and gas production tax revenue to the economic stabilization fund if the ending fund balance for the preceding fiscal year is greater than $5 billion and for reducing the rates of oil and gas production taxes by amounts sufficient to equal the foregone transfer.

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What you need to know:

• Severence taxes put into the Rainy Day Fund to be cut if there is more than $5 billion in the Rainy Day Fund
• Rainy Day Fund balances above $5 Billion will fund general revenue & the state highway fund
• Supporters say:
  • it would immediately move more money into general revenue & the state highway fund
  • once the Rainy Day Fund dipped just below $5 billion, it would unlikely exceed $5 billion again
  • The author says ““the most pro-business bill filed in the 85th Legislature,”

Amarillo Globe | Seliger proposes bill to cap oil and gas production taxes