Doyle to transfer money to “rainy day” fund
Governor Jim Doyle announced yesterday that following a full accounting of fiscal year 2006-07 tax collections and state expenditures, he will make a transfer of $50 million to the state’s rainy day fund – the first transfer of its kind in state history. When Governor Doyle took office, the balance in the state's rainy day fund was only about $1,000.
“Because of real fiscal responsibility, Wisconsin now has a growing economy and a healthy rainy day fund,” Governor Doyle said. “We are heading in the right direction, but the Legislature’s failure to pass a budget will have disastrous fiscal affects on our state. To continue down the path of fiscal responsibility, the Legislature must act now and pass a budget that ensures our state’s long term financial security. “
The current balance of the rainy day fund is $780,000. The largest deposit to the fund to date was $472,000 and occurred in fiscal year 2004-05, as a result of efforts by the Governor to sell state property, including aircraft and fleet vehicles.
The state is required by current law to achieve a balance of $65 million at the end of each fiscal year. Because of a growing economy and responsible state budgeting, Governor Doyle has achieved a surplus beyond the amount required by law.
In the budget Governor Doyle presented to the Legislature in February, he doubles the state’s statutory balance to $130 million. This funding, combined with the new rainy day fund balance, demonstrates continued progress toward improving the state's financial condition. The purpose of these reserves is to ensure the state is able to weather national economic downturns. In addition, the state’s improved financial picture, combined with the Governor's proposed changes in the yet to be adopted budget, puts Wisconsin in excellent position for an upgrade in the state's bond rating.
The final accounting of revenues and expenditures for fiscal year 2006-07, will be included in the state Annual Fiscal Report which will be issued on October 15, 2007. Figures in that report are not expected to deviate significantly from these preliminary estimates.
Under state law, actual tax collections in a fiscal year must be compared with the estimated tax collections made for that fiscal year in the biennial budget act. If actual collections exceed estimates and the required general fund ending balance is fully funded for that fiscal year, then 50 percent of the excess revenues must be transferred to the rainy day fund. Since this law was first enacted in 2001, excess revenues have not been sufficient to make a transfer to the rainy day fund.
To view Department of Administration Secretary Michael Morgan’s letter detailing the transfer, go to: http://www.wisgov.state.wi.us/docview.asp?docid=11972.
“Because of real fiscal responsibility, Wisconsin now has a growing economy and a healthy rainy day fund,” Governor Doyle said. “We are heading in the right direction, but the Legislature’s failure to pass a budget will have disastrous fiscal affects on our state. To continue down the path of fiscal responsibility, the Legislature must act now and pass a budget that ensures our state’s long term financial security. “
The current balance of the rainy day fund is $780,000. The largest deposit to the fund to date was $472,000 and occurred in fiscal year 2004-05, as a result of efforts by the Governor to sell state property, including aircraft and fleet vehicles.
The state is required by current law to achieve a balance of $65 million at the end of each fiscal year. Because of a growing economy and responsible state budgeting, Governor Doyle has achieved a surplus beyond the amount required by law.
In the budget Governor Doyle presented to the Legislature in February, he doubles the state’s statutory balance to $130 million. This funding, combined with the new rainy day fund balance, demonstrates continued progress toward improving the state's financial condition. The purpose of these reserves is to ensure the state is able to weather national economic downturns. In addition, the state’s improved financial picture, combined with the Governor's proposed changes in the yet to be adopted budget, puts Wisconsin in excellent position for an upgrade in the state's bond rating.
The final accounting of revenues and expenditures for fiscal year 2006-07, will be included in the state Annual Fiscal Report which will be issued on October 15, 2007. Figures in that report are not expected to deviate significantly from these preliminary estimates.
Under state law, actual tax collections in a fiscal year must be compared with the estimated tax collections made for that fiscal year in the biennial budget act. If actual collections exceed estimates and the required general fund ending balance is fully funded for that fiscal year, then 50 percent of the excess revenues must be transferred to the rainy day fund. Since this law was first enacted in 2001, excess revenues have not been sufficient to make a transfer to the rainy day fund.
To view Department of Administration Secretary Michael Morgan’s letter detailing the transfer, go to: http://www.wisgov.state.wi.us/docview.asp?docid=11972.
posted by Cheryl Hentz at 11:22 AM
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