House Passes Rainy Day Fund Legislation
The Kansas House of Representatives voted 89-33 today to establish a rainy day fund for the state, Substitute for House Bill 2320.
IMMEDIATE RELEASE
March 12, 2009
For more information, contact:
Rep. Mike Burgess
785/296-7653
Mike.Burgess@house.ks.gov
HOUSE PASSES RAINY DAY FUND
Topeka – The Kansas House of Representatives voted 89-33 today to establish a rainy day fund for the state, Substitute for House Bill 2320.
“Our economy goes through highs and lows – right now, it has hit a low and we face some difficult budget decisions. Several major pieces of our Kansas economy – aviation, agriculture – are cyclical. Not having a rainy day fund is kind of like walking on a high wire without a net,” Representative Burgess said. “A rainy day fund lets the state put a little into savings during the good times and lean on it during the difficult times – making us better prepared for a down turn in the economy. I believe a government that is more stable in funding will operate more efficiently.”
In fiscal years when the state’s ending balance exceeds its 7.5% ending balance statute, Substitute for House Bill 2320 would transfer 2% into the fund. The bill also:
- Allows the first qualified transfer into the fund August, 2013;
- Limits transfers out of the fund to 50% in any one year;
- Prohibits the Governor from using the fund to prepare the Governor's Budget Report;
- Prohibits transfers into fund if balance reaches 20% of the general fund budget from the previous fiscal year.
Rep. Burgess said he worked with both sides of the aisle to write a measure that received support from Republican and Democrat House members.
“Establishing and funding a rainy day fund isn’t a partisan issue – it’s a matter of good government,” Burgess said.
The bill now goes to the Senate for its consideration.
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Mike Burgess serves north and west Shawnee County and southern Wabaunsee County, including Alma, Eskridge, Harveyville, Rossville, Silver Lake, Willard and a little bit of Topeka.