After the deposit is made, the state\u2019s reserve fund will be nearly $7 billion<\/p>\n
Harrisburg, PA \u2014 Pennsylvania Treasurer Stacy Garrity today praised the General Assembly and the Governor for adding about $740 million to the state\u2019s Rainy Day Fund as part of the state budget for Fiscal Year 2024-25 \u2013 bringing the state\u2019s reserve fund to a record high, nearly $7 billion.<\/p>\n
\u201cBuilding Pennsylvania\u2019s Rainy Day Fund strengthens our fiscal outlook as we prepare for the future,\u201d Treasurer Garrity said. \u201cWhen I took office, we had one of the worst reserve funds in the country \u2013 the Rainy Day Fund was so small that it would barely cover the Commonwealth\u2019s bills for two days. Now, thanks to four consecutive years of strong savings, we\u2019re well above the national median. A big part of responsible budgeting is setting money aside when you can, and I strongly support this smart decision by the General Assembly and the Governor.\u201d<\/p>\n
The balance of the state\u2019s reserve fund, currently $6.25 billion, will increase to approximately $6.987 billion when the deposit is made. That\u2019s enough money to run the Commonwealth for 53.6 days. According to The Pew Charitable Trusts, the national median is 46.0 days.<\/p>\n
In November, Treasurer Garrity announced that the Treasury Department created a new investment pool dedicated exclusively to the Rainy Day Fund. The new pool is creating greater investment returns for the fund while maintaining necessary liquidity.<\/p>\n
The Rainy Day Fund, formally known as the Budget Stabilization Reserve Fund, provides a fiscal safety net for possible economic downturns to help prevent tax hikes and cuts to discretionary programs.<\/p>\n
Building and maintaining the Rainy Day Fund are integral to responsible state budgeting. Moody\u2019s emphasized the need for a strong Rainy Day Fund in its September 2023 Rating Action which upgraded Pennsylvania\u2019s outlook from stable to positive and affirmed our state\u2019s Aa3 rating: \u201cMaintenance of adequate reserves is particularly important in Pennsylvania given a history of protracted budget negotiations, as well as demographic weaknesses that could have negative implications for long-term job growth, overall economic performance and state revenue.\u201d<\/p>\n
Information provided to TVL by:
\nSamantha Heckel<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
After the deposit is made, the state\u2019s reserve fund will be nearly $7 billion Harrisburg, PA \u2014 Pennsylvania Treasurer Stacy Garrity today praised the General Assembly and the Governor for … Continue reading Treasurer Stacy Garrity Commends General Assembly and Governor for $737 Million Rainy Day Fund Increase<\/span>