Increases size of state “rainy day” fund from 5% to 12.5% of the General Fund.
- A portion of the annual deposits into that fund would be dedicated to savings for future economic downturns, and the remainder would be available to fund education, infrastructure, and debt repayment, or for use in a declared emergency.
- Requires additional revenue above historic trends to be deposited into state “rainy day” fund, limiting spending.
What does that mean to you? At first glance it looks like a great idea, limiting state spending, increasing our rainy day budget. It's a no brainer right?
If you read farther down on the Secretary of State page you will see this:
- Higher state tax revenues of roughly $16 billion from 2010—11 through 2012—13 to help balance the state budget.
- In many years, increased amounts of money in state “rainy day” reserve fund.
- Potentially less ups and downs in state spending over time.
- Possible greater state spending on repaying budgetary borrowing and debt, infrastructure projects, and temporary tax relief. In some cases, this would mean less money available for ongoing spending.
Higher taxes - this is an extension of the tax hike we just got last month. This measure extends it for 2 more years.
Potentially less ups and downs? What do you mean potentially? If we are going to cut state spending let's CUT IT!
Possibly GREATER state spending.....HUH? Wha? Wait a minute, up above it said LESS state spending.
Double talk anyone?
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