Time Proves State’s Refusal to Spend Rainy Day Fund Misguided; What We Should Do Now and for the Future

During the legislative session, the Center for Public Policy Priorities recommended that the state spend the Rainy Day Fund to prevent damaging cuts to vital state services, particularly public education. See Using the Rainy Day Fund to Ensure our Recovery and Prosperity (Feb. 21, 2011). The Rainy Day Fund is a constitutional fund designed to save money in good times to pay ongoing expenses during bad times when revenue is short. After the economy improves, and revenue rebounds, general revenue once again pays for ongoing expenses. During the 2011 legislative session, with billions available for appropriation from the Rainy Day Fund, the state had no need to cut spending on public education—the proven path to good-paying jobs. Unfortunately, the state cut public education spending by $5.3 billion.

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