House Approves of Changes to Rainy Day Fund

Liz Gullett

Oct 12, 2018

The House of Representatives approved of a plan setting up a structure for when the State can make withdrawals from the budget stabilization fund. Often referred to as the rainy day fund, the fund is the state’s savings account. The legislation, introduced by Representative Laura Cox (R-Livonia), would prevent withdrawals unless the economy stops growing, as determined by the state through a Consensus Revenue Estimating Conference. “Over the past eight budget cycles the State has grown the rainy day fund from $2 million to over $1 billion. Since Governor Snyder has been in office, he has made it a priority to work with the legislature to make annual deposits into the fund,” stated Rudy Hobbs of MLC. The legislation will be sent to the Senate for consideration.

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