Mississippi, like most states, socks away some cash for emergencies in a government “rainy day fund.”
It’s been raining on the state budget for nearly two years now. The Working Cash Stabilization Reserve Fund, as it is formally known, has helped the state pay its bills amid revenue shortfalls and prevented drastic state agency budget cuts from being even more drastic.
But if it keeps on raining, will the emergency fund have enough to cover revenue shortfalls and-or keep credit rating agencies from lowering the state’s credit score?
State leaders say the fund remains “healthy” and they hope to replenish it.
To be considered “statutorily full” the rainy day fund should have 7.5 percent of the prior year’s operating revenue. For the new budget year that starts in July, the fund should have $430 million (not counting $5 million for a lawsuit settlement held in the account).