OKs $3.2 Billion Rainy Day Fund Withdrawal

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On Tuesday afternoon, Gov. Rick offered the chair of the House Appropriations Committee the blessing he seeks to go forward with a vote that would authorize the withdrawal of $3.2 billion from the state's Rainy Day Fund. Chairman Jim Pitts, R-Waxahachie, said on Monday he wanted the governor's public support in order to " comfort " some members of his committee.

In the press release issued just before 3 p.m., 's office said he had reached an agreement with House Speaker Joe Straus, R-San , and Comptroller Combs to " close out the Fiscal Year 2011 budget gap by implementing $800 million in cuts, using $300 million from increased sales tax collections over the last few months, and using a one-time draw not to exceed $3.2 billion from the state’s Economic Stabilization Fund, also known as the Rainy Day Fund. "

made it clear in the release that he continues to oppose using the Rainy Day Fund to help close the 2012-2013 biennium budget shortfall, which is estimated to be between $15 billion and $27 billion. “As we craft the next two-year budget, Texas leaders will continue to focus on a more efficient, fiscally responsible government, essential state services, and private sector job creation, " he said. " I remain steadfastly committed to protecting the remaining balance of the Rainy Day Fund, and will not sign a 2012-2013 state budget that uses the Rainy Day Fund.”

Within minutes after the press release was sent to reporters, Pitts pounded the gavel and called his meeting — originally scheduled to begin at 1:30 p.m. — to order.

http://www.texastribune.org/texas-legislature/82nd-legislative-session/perry-oks-32-billion-rainy-day-fund-withdrawal/

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