AUSTIN (KXAN) — Texas' State Highway Fund received roughly $2.74 billion from excess tax revenues, Texas Comptroller Glenn Hegar's office announced last week.
Hegar confirmed the additional dollars came courtesy crude oil and natural gas production tax revenues "in excess of 1987 collections," per the release. According to his office, when either tax generates more revenue than the 1987 threshold, 75% of that excess is transferred elsewhere.
“These transfers into the ESF and SHF show the Texas economy remains strong and well positioned for continued growth albeit at a much more moderate pace than what we have seen in recent years,” Hegar said in the release. “Although inflation has come down from the historic levels reached during the current administration, uncertainty remains in the global economy as consumers continue to grapple with elevated prices on everything from groceries to home and auto insurance, and geopolitical instability persists.
The State Highway Fund is designed to pay for improvements to Texas' state highway systems as well as to minimize any negative environmental effects that could come from the construction or maintenance of a state highway, per the Texas Transportation Code. The fund isn't permitted to cover costs related to a toll facility tied to a public or private entity, or cover bonds issued for costs affiliated with a toll facility.
The fund receives its dollars from Texas' motor vehicle fuels tax, federal highway and other agencies' reimbursements, vehicle registration fees, smaller-scale revenues and local project participation funds, per the Texas Department of Transportation.
TxDOT's 2024-25 biennial budget features appropriations amounting to more than $37. 2 billion. When breaking down that budget, traditional funding sources for TxDOT included:
With the State Highway Fund, that supports a host of operational uses, including administration and support services, project development and delivery as well as maintenance and replacement work.
