| House approves lower cap on rainy day fund
Last Tuesday, the House passed a pair of bills that would end a further build-up of rainy-day dollars, instead the excess money would be used to pay off bonds early. HJR 8, a constitutional amendment, requires that when the state's rainy day fund hits a prescribed ceiling, any additional money will go into a specifically created fund for debt relief. Chairman Otto believes that this move is a fiscally responsible way to use these balances to pay off state debt. HB 8, also authored by Chairman Otto, lowers the cap and halts the practice of depositing federal money into the general revenue fund. The rainy day fund's ceiling would decrease to $11.8 billion. However, Otto's bill would not affect the cap for the next two-year budget cycle, which has already been set at $16.1 billion. |
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