Tuesday, October 16, 2012

Wisconsin's Rainy Day Fund in Perspective



Walker trumpets deposit into state's rainy day fund.  (Wisconsin State Journal, 10/16/2012)

As the Milwaukee Journal-Sentinel points out:  The deposit is a significant sum but would be of only limited use in a financial crisis for the state. With the state spending $13.38 billion last year out of its main account, the rainy deposit would be enough to run state government for about three days.

$13,380,000,000
         $1,087,000

Gov. Scott Walker says he has made first back-to-back payments to Rainy Day Fund in state history. (PoliticaFact Wisconsin, 5/26/2012)

Excerpt: Additionally, putting money in the stabilization fund is not a matter of choice. By law, 50 percent of any surplus from higher-than-expected income and other tax collections must be transferred to the rainy day fund. That’s exactly what Walker is saying he would deposit.

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