Save it for a Rainy Day
By Goldwater Institute: JuliAnna Camp (01/17/07)
Fund is for emergencies, not traffic jams - When it came to money, my dad would always say, "Save it for a rainy day." In essence, save for the future because you never know when you'll be in a bind. It was good advice.
Arizona also has a rainy day fund, formally called the Budget Stabilization Fund. As its name implies, the fund’s purpose is to provide stability during rocky times, such as basic state services during economic recessions and catastrophic events like floods and fires. Instead the money is burning a hole in lawmakers’ pockets. Some propose taking $450 million to speed up transit projects. With the fund apparently open for business, another lawmaker has proposed reaching into the stash for school construction.
While we may all agree that transportation and education are important, both are ongoing expenses. Neither constitutes an emergency by any stretch of the imagination.
Legislators should exercise fiscal responsibility and cover ongoing expenses with general revenue. Going this route will ensure that when a rainy day comes our way, Arizona will be ready.
JuliAnna Camp is a major gifts associate at the Goldwater Institute.
http://www.goldwaterinstitute.org/aboutus/ArticleView.aspx?id=1358
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