Ducey OKs bill allowing rainy-day fund boost to $1 billion
PHOENIX (AP) — Gov. Doug Ducey has signed legislation allowing a big increase in the state’s rainy day fund. Whether lawmakers actually make the major deposit he called for in January remains in doubt.
The bill Ducey signed Tuesday raises the rainy day fund maximum from 7% of general fund revenues to 10%. That would allow the $1 billion the governor is seeking.
The Republican governor wants the “Budget Stabilization Fund” increased by $542 million in case a recession hits. A March Pew Charitable Trust study shows current funding would support state operations for only 17 days.
Some majority Republican lawmakers oppose the full increase because it relies in part on a windfall from a 2017 federal tax overhaul they see as a tax increase. Others want to repay state debt.