Bigelow, Borgeas And Others Push For Restoring Rainy Day Money
Sacramento, CA — 26 Republican lawmakers sent a letter to Governor Gavin Newsom calling for him to replenish $7.8 billion taken from the state’s rainy day fund during the COVID-19 pandemic.
The money was removed when California was facing a projected $54.3 billion budget deficit. Things have turned around financially, and the state now has a $76-billion surplus. Voter approved Proposition 2 requires state government to annually set aside 1.5-percent of General Fund revenues for the rainy day fund, and Mother Lode Republicans like Senator Andreas Borgeas and Assemblyman Frank Bigelow are advocating for paying back the $7.8 billion as well.
The letter states, “The COVID-19 pandemic demonstrated the importance of maintaining a robust savings account to provide stability in the event of an emergency.”
Adding, “Last year, the state budget borrowed $7.8 billion from the Rainy Day Fund to help fund essential programs when the state faced a $54.3 billion deficit. The state’s reliance on the reserves to maintain these vital programs and services, keep California families afloat, and purchase personal protection equipment during the pandemic serves as a textbook example of how crucial it is to maintain a healthy Rainy Day Fund.”
The letter concludes by stating California will be “falling into a trap” fiscally if it creates new programs before fully restoring the Rainy Day Fund.
