Thursday, July 5, 2007
In The Black
With a new fiscal year off and running, the Department of Finance and Administration reports the state surplus to be just over $1 billion. Most of that money is already accounted for, with almost half going to school facilities. According to the DF&A, when all is said and done, state government should begin the new budget cycle with roughly $112 million to spare. A rainy day fund if you will. Speaking of which, I endorsed a bill by Rep. Maloch back during the session to create just such a fund of $200 million with specific spending mechanisms tied to it. Even though it never got traction, I still believe that is a prudent plan and will be supporting similar legislation in the future. With the recently enacted tax cuts now in effect, and hopefully more coming in 2009, that $112 million is an encouraging sign.