Pub. 60 2019-2020 Issue 3

32 4 G L E N N H E G A R • TE X AS COMPTROLLER OF PUBLIC ACCOUNTS Where Does Texas’ Tax Revenue Go? For accounting and budgeting purposes, state revenue is deposited or transferred into various funds, with most going into the General Revenue Fund (GR) to be appropriated by the Legislature. However, some tax revenue is deposited directly or transferred into special funds for specific purposes. Three of the state’s more prominent special revenue funds are the State Highway Fund (SHF), the Property Tax Relief Fund (PTRF) and the Economic Stabilization Fund (ESF). The SHF is used for the construction, maintenance and policing of public roads. Historically, the primary revenues for this fund have been federal receipts, 75 percent of motor fuel tax net collections, most motor vehicle registration fees and — since fiscal 2015 — one-half of 75 percent of oil production and natural gas production tax revenues that in any fiscal year exceed fiscal 1987 collections. A constitutional amendment approved by voters in 2015 allocated the first $2.5 billion of state sales tax collections in excess of $28.0 billion in a fiscal year to the SHF beginning with fiscal 2018. Starting in fiscal 2020, 35 percent of motor vehicle sales and rental taxes collections in excess of $5.0 billion will be transferred into the SHF. Over the 2020-21 BIENNIUM , the Comptroller’s office estimates the SHF will receive $28.9 BILLION from all sources. The PTRF is used, along with GR and other funds, to finance the state’s K-12 public education system. The major revenue sources for this fund include the amount of franchise tax collections generated by its restructuring in fiscal 2006, and revenue generated from the $1.00 increase in the cigarette tax rate implemented in fiscal 2007. Over the 2020-21 BIENNIUM , the Comptroller’s office estimates the PTRF will receive $4.1 BILLION from all sources. The ESF, also known as the Rainy Day Fund, receives one-half of 75 percent of oil production and natural gas production tax revenues in any fiscal year that exceed fiscal 1987 collections, and one-half of any unencumbered GR surplus remaining at the end of each biennium. By the end of fiscal 2021, the total ending balance of the ESF is projected to reach $9.4 BILLION , assuming no new appropriations are made from the fund during the 2020-21 BIENNIUM . This balance would represent 49.8 PERCENT of the cap, as set by the Constitution. State Highway Fund (SHF) FISCAL 2018 FISCAL 2019 FISCAL 2020 FISCAL 2021 ACTUAL ACTUAL ESTIMATED ESTIMATED Total State Revenue $6,259,256,738 $10,242,128,825 $9,027,948,000 $9,012,029,000 Total Federal Income $3,828,212,673 $3,967,417,806 $5,619,546,000 $5,246,579,000 Total Revenue $10,087,469,412 $14,209,546,631 $14,647,494,000 $14,258,608,000 Property Tax Relief Fund (PTRF) FISCAL 2018 FISCAL 2019 FISCAL 2020 FISCAL 2021 ACTUAL ACTUAL ESTIMATED ESTIMATED Total Revenue $1,641,074,267 $2,099,387,384 $2,020,150,000 $2,111,169,000 Economic Stabilization Fund (ESF) FISCAL 2018 FISCAL 2019 FISCAL 2020 FISCAL 2021 ACTUAL ACTUAL ESTIMATED ESTIMATED Ending Cash Balance $8,702,426,768 $6,834,118,067 $2,006,103,563 $2,402,911,229 Ending Invested Balance $2,340,988,696 $3,255,348,755 $5,823,827,849 $6,950,000,248 Total Ending Balance $11,043,415,464 $10,089,466,822 $7,829,931,412 $9,352,911,477 ESF Cap $16,868,457,433 $16,868,457,433 $18,797,980,184 $18,797,980,184 T he Comptroller and account for s several of these r at comptroller.te Net Sta FISCAL 201 SOURCE Tax Collections Federal Income Licenses, Fees, Fines State Health Service and Rebates Net Lottery Proceeds Land Income Interest and Investme Settlements of Claims Escheated Estates Sales of Goods and Se Other Revenue Total Net Revenue 8 GLENN HE MOTORVEHICLE MOTOR VEH ENACT T hemotorvehicle largest tax in this on the retail sales allowance,ofmoto Themotorvehicle apercentofgross the rentalofvehic dependingon the InNovember2 a constitutionalam 35percentof then taxesabove$5bil Fund,beginning transfer isproject infiscal2020,and fiscal2021. Perce Total Ta FI AllFunds $5 B ANNUAL  TAXES — CONTINUED FROM PAGE 31  TAXES — CONTINUED ON PAGE 34