Will They or Won't They Spend it All?

With a current Rainy Day Fund balance of almost $600 million in state reserves, Gov. Brad Henry proposes to spend almost all of it -- $553 million -- to fund state government operations. In contrast, Republican leaders, including Speaker Chris Benge and Senate President Pro Tempore Glenn Coffee, would like to appropriate no more than 3/8 of the balance -- some $234 million, in case the current recession in state revenues continues for another two to three years. Of course, Gov. Henry won't be in office beyond January, 2011, so a lack of state money in future years will not be his problem; he understandably wants to fund the operations of state government well during his watch. But, it seems prudent to OFPC for state leaders to make the hard, necessary cuts today and save as much as possible in the Rainy Day account for any future lean years the state may yet have to endure.

For more on the emerging Rainy Day fund situation, read Patrick B. McGuigan's excellent report at CaptiolBeatOK by clicking here.