Efforts to Strengthen Spending Cap, Rainy Day Fund

The Appropriations Committee met his week and identified bills to be addressed in a future public hearing.
These include SB 128, which calls for adhering to the state’s constitutional spending cap in full and preventing emergency or other spending from being included in the cap calculation; and HB 5958, which seeks to increase and bolster revenues in the state’s Budget Reserve Fund, also known as the “Rainy Day” fund.
The constitutional spending cap was part of the package of spending reforms passed in 1991to to ensure prudent state spending and keep government within the ability of taxpayers to afford it.
HB 5958 seeks to increase and bolster revenues in Rainy Day Fund by directing any budget surpluses into the fund.
Given the increasing volatility of state revenues and uncertainties that remain in our economy, it’s imperative for the state to strengthen the reserve fund and use it wisely to address real budget shortfalls and help reduce state debt.
For more information, contact CBIA’s Louise DiCocco at 860 244.1169 or louise.dicocco@cbia.com.