Post by Logan on Feb 23, 2016 7:59:35 GMT -6
LePage proposes transferring $72.7 million to Maine’s rainy day fund
AUGUSTA — The LePage administration is proposing to funnel a projected $72.7 million budget surplus into Maine’s rainy day fund, a move that could generate debate with lawmakers about the best uses for the additional money.
On Monday, members of the Maine Revenue Forecasting Committee said they were expecting $72.7 million in additional General Fund revenue through the end of the current two-year budget cycle in June 2017. As a result, Gov. Paul LePage plans to introduce legislation to send all of that money into the state’s Budget Stabilization Fund.
If approved the by Maine Legislature – which isn’t guaranteed given the current political climate in Augusta – the transfer would increase Maine’s rainy day fund from $111 million to at least $183 million by June 30, 2017. That represents roughly 3 percent of the state’s two-year $6.7 billion budget.
The Budget Stabilization Fund, which is frequently referred to as the rainy day fund, is used to cover revenue losses during economic downturns, but has been tapped by politicians to pay for other budget priorities. Credit rating agencies also consider the size of the fund relative to the state budget.
Read more: www.pressherald.com/2016/02/22/lepage-to-introduce-legislation-to-transfer-72-7-million-to-states-rainy-day-fund/
AUGUSTA — The LePage administration is proposing to funnel a projected $72.7 million budget surplus into Maine’s rainy day fund, a move that could generate debate with lawmakers about the best uses for the additional money.
On Monday, members of the Maine Revenue Forecasting Committee said they were expecting $72.7 million in additional General Fund revenue through the end of the current two-year budget cycle in June 2017. As a result, Gov. Paul LePage plans to introduce legislation to send all of that money into the state’s Budget Stabilization Fund.
If approved the by Maine Legislature – which isn’t guaranteed given the current political climate in Augusta – the transfer would increase Maine’s rainy day fund from $111 million to at least $183 million by June 30, 2017. That represents roughly 3 percent of the state’s two-year $6.7 billion budget.
The Budget Stabilization Fund, which is frequently referred to as the rainy day fund, is used to cover revenue losses during economic downturns, but has been tapped by politicians to pay for other budget priorities. Credit rating agencies also consider the size of the fund relative to the state budget.
Read more: www.pressherald.com/2016/02/22/lepage-to-introduce-legislation-to-transfer-72-7-million-to-states-rainy-day-fund/