Savings May Get Tougher As California Rainy Day Fund Fills

SACRAMENTO, Calif. (AP) – California’s next state budget will fill the state’s rainy day fund just four years after Gov. Jerry Brown convinced voters to boost the savings threshold in preparation for a recession.But filling it brings a strange dynamic. If the good economic times continue the state can’t put substantially more money in the fund. But it’s not nearly enough to keep the state afloat during even one bad year. Lawmakers are preparing to vote Thursday on the nearly $140 billion general fund budget. It would boost total state savings to $16 billion, almost all in the rainy day fund. That money can’t be tapped unless there’s a fiscal emergency caused by a natural disaster or plummeting revenue. Socking away money has been a top priority for Brown.

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