Energy Stabilization Fund proposal would help avoid wild budget swings
House Speaker Chris Benge this week was joined by Republican Senator Patrick Anderson and Democratic Senator John Sparks in unveiling a proposal to create a new budgetary reserve fund to help cushion the state from a repeat of the extreme revenue volatility seen in recent years. The proposal, introduced as a committee substitute for the Speaker’s bill HB 3032, is for gross production tax collections exceeding a 3-year moving average to be set aside into an Energy Stabilization Fund. When gross production taxes fall below their 3-year average, revenues would automatically flow back to the General Revenue Fund. In addition, interest from the Fund’s principal would be dedicated to enhanced energy recovery research.
