Senate Proposal Revives Rainy Day Fund Idea

An effort in the Senate aims to venture where the House refused to go. Senator Jim Mathewson of Sedalia has introduced a resolution authorizing the state to dip into the Rainy Day Fund to help deal with the current budgetwoes. He sponsors a second motion which would allow the sale of bonds to borrow against future funds coming to the state from the tobacco settlement. He says tobacco revenues alone would not get to state coffers in time. Governor Holden likes the proposal to revive the Rainy Day Fund idea. Two-thirds majorities in both the House and Senate are needed to allow the state to take money from the Rainy Day Fund. The proposal calls for Rainy Day Fund money to plug budget holes … with tobacco money used toreplenish the Rainy Day Fund once tobacco money is available.