Panel sets $7 billion minimum for Rainy Day Fund

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.

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