frustratedearthmother
Herd Master
- Joined
- May 7, 2013
- Messages
- 8,091
- Reaction score
- 14,847
- Points
- 623
Awful, just awful...
Clever. The Vermont Constitution requires a balanced budget every year. Yeah we have our own problems, like the underfunded state employees' retirement fund but they can't spend more than they take in.The problem is that Alaska had SO MUCH money for SO MANY years with the oil industry up here .. And being stupid idiot government they spent everything they got plus extra
That there is wonderfulNo "rainy day" fund?
tsk tsk....
What is the Rainy Day Fund?
Since 1989, the State Constitution has required that a portion of oil and gas production taxes go into the Economic Stabilization Fund (ESF). Many states have a cash reserve, but Texas has the largest in the country. With a supermajority vote, the legislature can use the Fund as general revenue in the current or next budget cycle. The Texas Constitution also authorizes the Comptroller to make temporary transfers out of the Fund to make up for a General Revenue deficit.
How does money get into the Fund?
The Fund receives a transfer of at least one-half of 75 percent of the prior year’s oil and gas severance tax collections that exceed what each of those taxes generated in 1987. Starting with fiscal year 2015, the remainder of that 75 percent goes to the State Highway Fund. Before 2015 the Fund received all of the transfer.
The Fund balance is projected to reach $10.5 billion by the end of Fiscal 2018—a record high. Natural gas tax deposits were a major source of revenue for the Fund from 2002 to 2009; oil severance taxes were more important from 2013 to 2016. By the end of fiscal 2019, $11.2 billion will be available in the Fund.