Research Report
Don’t Tap Rainy Day Fund: State Package Overstates Proper State Relief Role
posted December 13, 2001 by Don Carrington
State lawmakers are being asked to tap the rainy day fund to finance hurricane relief. They should look more closely at the details of the administration proposal. It provides large windfalls to businesses, farmers, homeowners, and others far beyond what is needed to alleviate immediate suffering and repair public infrastructure. A relief plan reflecting better priorities could be financed with budget savings, so the rainy day fund could be used to repay $240 million in illegal taxes.