Rainy Day Fund

Governor Fletcher plans to set aside nearly half of the state's expected 214 million dollar budget surplus for the rainy day fund to take care of future spending needs.

Fletcher said today that decisions on what to do with the remaining 124 million dollars will have to wait. He noted the options mandated by the General Assembly are to cover the burgeoning Medicaid deficit, teacher salaries or other elementary and secondary education assistance.

Most of the surplus is due to much higher than expected tax receipts for the fiscal year that ended June third, which were 195 million dollars more than projected.  Budget director Brad Cowgill said he wants to get a better handle on revenue projections for the current fiscal year before making recommendations on spending the surplus.

Fletcher said putting about 90 million dollars more into the budget reserve will bring it up to the maximum now allowed by the legislature.