What is the point of a rainy day fund?

If I were the Feds, I'd be questioning why the state is asking me for money while not spending money they have available for this purpose.

That said, I think the fund is technically there in case of an economic downturn preventing the state from having revenues needed to run the state, rather than for disasters and other "new" spending.

 

Seriously? While I can agree that there should be state funds set aside for emergencies, doesn't this disaster qualify if anything does? I knew the state had a multi billion dollar rainy day fund, but didn't realize that it had grown to $10 billion. That's far too large, In my opinion.

Abbot, from whom I expect nothing, having a low opinion of the man, should commit at least half of that to help rebuild Houston and the rest of the Gulf Coast of Texas. Any less would be a slap in the face to the huge numbers of Texans affected by Harvey.

For a state government that has refused to accept hundreds of millions of dollars of federal funds due to political reasons, hurting hundreds of thousands of children and the elderly in the process, to then expect that same federal government to foot the bill for Harvey is more than a little hypocritical, in my opinion. And who else will pay for reconstruction? The impacted counties, towns, and cities of coastal Texas? While Abbot sits on $10 billion? Someone tell me the story isn't true.

Oh, and Abbott saying the state has the funds to deal with the aftermath of Harvey until the next legislative session is outright bullshit. As noted in the article, and every Texan should know this, the state legislature goes into session every biennium. In other words, every 2 years. We just finished a session and a special session, meaning that the next regular session is a year and a half away. Abbott would have to call another special session to dip into the rainy day fund. He should have issued the call for exactly that, instead of making this bizarre declaration.

Good find, Air Langhi!

 

I wonder what portion of this estimate by Abbot is expected to be covered by the government, local and federal.. ?

Abbott suggests Harvey recovery could cost $180 billion

 

Why tap the fund when the federal government will come in. People just have to be patient

 

If only we had a Democrat in office!!! I am sure we could make that rainy day fund disappear overnight. In fact it would have disappeared so fast we would not have one long before we ever heard of Harvey..

 

So wrong.

California's budget rainy-day fund is expected to grow to almost $8 billion

48 states have Rainy Day Funds




http://www.governing.com/gov-data/finance/state-rainy-day-fund-balances-annual-data.html

 

We still needed to use the obama bailout to plug state budget during the Great Recession.

 

Alternately, a state that has no income tax and a balanced budget amendment may need to spend this money elsewhere down the road; while allowing charitable donations, banking investments and natural migration or emigration organically replenish or economically dispose of all the damaged private property. Literally anything less childish and irrelevant that your typical spiteful garbage.