The Facts
- The rainy day fund is expected to grow to $7.3 billion by the end of fiscal 2013.
- If the fund reaches $7.3 billion as projected, the ending balance would be the 2nd highest in the history of the ESF.
- Using one-time monies to pay for ongoing expenses is poor public policy.
Recommendations
- The ESF should only be spent on one-time emergency items or tax relief. The fund should not be spent to support ongoing expenses.
- At a minimum, even in the face of one-time emergencies, lawmakers should preserve an ESF balance equal to 5% of the general revenue and general revenue dedicated funds in the 2012-13 budget. This figure amounts to approximately $4.4 billion.
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