Report Says Michigan's Government Short On Savings
A downturn in the economy would quickly drain the state’s “rainy day” savings. That’s the determination of an independent analysis.
Michigan’s “rainy day” fund can help the state weather a recession without deep cuts or tax hikes. But that requires lawmakers to deposit generously when times are good.
Craig Theil is with the non-partisan Citizens Research Council. He says lawmakers tend to focus on boosting funding for services or cutting taxes when there’s a revenue windfall.
“During an improving economy, there’s this third option, which is putting money away for the rainy day.”
There is currently about $700 million in the fund, which zeroed out during the last recession.
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