Rainy Day Fund Bankrupt
It was revealed last week that the state's bank account did not have enough money to cover the monthly allocations owed to agencies in February, so the Office of Management and Enterprise Services withdrew all $270 million in our "savings account" (otherwise known as the Rainy Day Fund) to keep state bills paid. According to Secretary of Finance and Administration Preston Doerflinger, this procedure is constitutionally legal, however all the funds must be repaid by the end of June. If monthly collections between now and the end of the fiscal year are not strong enough to cover 2017 appropriations, the state would be forced to declare a revenue failure and agencies would be assessed
another mid-year budget cut. Earlier this year, state entities were assessed a $35 million mid-year reduction in funding.