Washington Has a Rainy Day Fund
The budget signed into law by Washington Governor Chris Gregoire this week includes a provision creating a rainy day fund. The new law requires lawmakers to deposit 1 percent of general fund revenues into a special rainy-day account each year. The money's not in a proverbial lockbox-- lawmakers can still use the money any time they want to as long as 60 percent of the legislature agrees, and when the economy goes south a simple majority is all they need to do so--but the creation of a regular source of inflow to this fund creates an important symbol for lawmakers.
To find out more about rainy day funds, check out ITEP's policy brief here.
posted by Matt G at
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