High Oil Prices Good For Texas Budget

AUSTIN (AP) - Unrest in the Middle East could produce a windfall of tax revenue for the Texas budget.

The money is coming from Texas oil producers, eager to cash in on the rising price of oil. Prices spiked in mid-February when fighting in Libya squeezed off shipments.

A percentage of each Texas-produced barrel of oil -- now priced at about $104 per barrel -- goes into the state's Rainy Day Fund.

It's way too early to know how big the fund will get. But most experts agree: the fund will get bigger than current projections.

Based on $70 per barrel oil, the state comptroller estimates a $9.4 billion balance in the fund at the end of the next budget period. But one economist says that figure could be closer to $11.6 billion.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)