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Lawmakers briefed on plans to replenish ‘rainy day fund’

Replenishing the state’s reserve funds would send a positive signal to credit rating agencies.

State officials just have to figure out how fast they want to do it.

A successful bond sale in December puts the state in position to recapitalize two reserve funds, also known as the ‘rainy day funds,’ faster than anticipated when they were tapped to balance the budget.

Since the depleted funds contributed to the state’s credit rating downgrade last year, Budget Director Kalbert Young recommends that the recapitalization start this year.

He told state senators at a Friday committee meeting that they could rebuild the reserves more gradually than the two year timeline originally proposed by the administration. 

The state Senate Commerce and Consumer Protection Committee on Friday endorsed a three year schedule in light of a recently downgraded economic forecast.

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