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Pennsylvania Senate Appropriations Chair Scott Martin, Lancaster/Berks, said state taxpayers expect lawmakers to manage their money responsibly. PHOTO/PACAST
Pa. Republicans laud transfer to Rainy Day Fund
Listen to this articleNearly $900 million has been transferred to Pennsylvania’s Rainy Day Fund, and Senate Republicans applauded the move as one that will strengthen the state’s financial situation.
The transfer of $898,318,962 represents the third-largest in Pennsylvania’s history. The amount of the transfer was based on existing law that mandates 10% of any budget surplus be transferred to the Rainy Day Fund.
Senate Appropriations Chair Scott Martin, Lancaster/Berks, said taxpayers expect lawmakers to manage money responsibly. Martin said the transfer “builds on the tremendous success we have seen in recent years of budgeting conservatively with an eye toward achieving long-term financial stability.”
Pennsylvania’s Rainy Day Fund in 2018 was less than $500,000, barely enough to fund state government operations for a few hours. Rainy Day Fund transfers in the Fiscal Years of 2022-23 ($2.1 billion) and 2021-22 ($2.6 billion) helped bring Pennsylvania’s budgetary reserves from one of the worst states in the country to just above the national median.
The fund now exceeds $6.1 billion, providing a hedge against economic downturns and unforeseen circumstances. Pennsylvania’s reserves and budget management have gained the attention of the nation’s major credit rating bureaus, namely Moody’s Financial Services and S&P Global Ratings. Both affirmed the state’s bond rating in September and revised Pennsylvania’s long-term outlook from “Stable” to “Positive.”
Senate President Pro Tempore Kim Ward, Westmoreland, and Senate Majority Leader Joe Pittman, Armstrong/Indiana/Jefferson/Westmoreland, joined Martin in applauding the transfer.
