Economic Stabilization Fund Ending Balance

The ESF — also known as the Rainy Day Fund — was created in 1988 after a drop in oil prices and a recession led to an increase in the sales tax and other levies. Money from this state savings account can be spent with a supermajority vote of the Legislature. Assuming no additional appropriations from the ESF, it will hit its cap at the beginning of fiscal 2026 with the partial transfer of 2025 severance tax revenues, reducing the amount of money to be transferred and preventing any additional transfers in fiscal 2027 and 2028. In addition, interest income on the ESF cash balance will flow to General Revenue Fund starting in fiscal 2026, when the cap is reached. Despite the halt on transfers and interest income, the ESF balance is projected to grow due to investment income on the invested portion of the fund.