Ray Dalio

Windfall Helps Rainy Day Fund, But Not Deficit Immediately

Windfall Helps Rainy Day Fund, But Not Deficit Immediately

With an infusion of millions of dollars in unexpected hedge fund revenue that arrived near the end of last year, the state’s rainy day fund has reached its highest level in nine years at more than $875 million.

But since the money is going into the rainy day fund and not into current operations, the projected shortfall for the current fiscal year is now $260 million, officials said. The deficit for the second year of the two-year budget is now projected at $282 million.

If needed, the rainy day fund could easily cover the deficits for both of those years. The numbers can change quickly, based on belt-tightening at the legislature or unexpected revenues that are based on the...

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