by Max Brantley
The balance - about 105 million - would be transferred to our Long Term Reserve fund. None of it would be spent unless Governor submits requests, certifies there are no other funds that could be used, certifies sluggish economic growth has resulted in less than 3% revenue forecast growth and then is approved by legislative council or Joint budget committee. We are going to amend so that it will take a 2/3 vote to approve which is what is required now. (Except by entire legislature). Failing to have it available for emergency uses is why the state gets no credit for a reserve fund when they determine our bond rating which affects schools, colleges, and economic development bond costs.
Don't disagree - but hard to argue we haven't taken some big steps on healthcare - in event of downturn we will still have to meet our MEDICAID match requirements so depending on where dollars are moved could likely still be used for healthcare. I'm not too excited about using it for economic development projects and probably wouldnt support such use.
But we really do need to start building a credible long term reserve and I would hope we build it up to 4-500 million. Then I hope we heavily scrutinize any withdrawals.