This week, the Department of Revenue announced that April revenues exceeded the estimate, continuing a trend that has occurred over the Fiscal Year. With stronger revenue growth, Governor Tom Wolf remained committed to working with legislative leaders to build up budget reserves and expressed an eagerness to discuss using all excess revenue to grow Pennsylvania’s Rainy Day Fund, which is among the smallest in the country.
“Last year, we made the first Rainy Day Fund deposit in more than a decade, and with strong revenue growth, along with legislative leaders I remain committed to saving for our future,” said Governor Wolf. “After taking care of our mandatory expenses and investments in schools and other critical services, I believe we should even consider putting all surplus revenue in the Rainy Day Fund. We have the opportunity to protect the commonwealth and taxpayers from future economic downturns and I look forward to engaging with the General Assembly on achieving this shared goal.”
After last year’s deposit, Pennsylvania’s Rainy Day Fund stands at $22 million. In 2009 the Rainy Day Fund was $755 million before the funds were used to make up for revenue shortfalls during the recession. Pennsylvania’s current Rainy Day Fund can sustain commonwealth operations for only a few hours while the average state Rainy Day Fund operations for more than 20 days.