New data released this week by the Texas Oil & Gas Association, shows that despite the current price environment, Texans continue to benefit from tax and royalty revenue from the oil and gas industry that directly funds essential public services.
More specifically, Texas school districts received $1.9 billion in oil and gas mineral property tax revenue in fiscal year 2015 and the industry continues to contribute more than a half billion dollars annually to the state’s Permanent School Fund. Worth $34.5 billion, the Permanent School Fund supports Texas K-12 public schools and is the second largest endowment in the United States. As reported here before, the advance of hydraulic fracturing in Texas has contributed a vast amount of financial support to the state’s schools and universities.
In light of the growing economic challenges of falling oil prices, Texas Oil & Gas Association President Todd Staples noted “it reminds us that this state and local revenue isn’t guaranteed. Texas has fostered a robust oil and natural gas industry by embracing sensible and predictable regulations that are protecting the environment and encouraging investment in our state. Staying the course with sound, science-based policy will ensure investment dollars and jobs continue to come to Texas.”