Today the Senate Republican Caucus introduced emergency legislation to protect The State of Nevada’s “Rainy Day Fund” formally known as the Account to Stabilize the Operation of State Government.
Current law allows for the legislature to spend money from the “Rainy Day Fund” for any purpose without limitations during the 120-day legislative session. Our emergency legislation will require a 45 day (6.25%) operating balance in the fund before the legislature can access the excess of that amount, unless triggers occur.
The true purpose of the “Rainy Day Fund” is to protect Nevada’s government services when regular revenue is decreased. Nevada used this account during the last recession and still made cuts in government services, including lay-offs and furloughs of state employees.
“The “Rainy Day Fund” was bankrupt when Governor Sandoval took office, today the fund is at an all-time high, yet still would not cover operating expenses for 30-45 days,” said Senator James Settelmeyer. “Today’s Economic Forum report makes it clear that we need to protect and grow the fund and not use it for pet projects during the session.”
“A healthy rainy-day fund will allow the legislature to protect our most essential services if the economy continues to slow,” said Senator Ben Kieckhefer. “Lawmakers must show restraint and enact limitations on when they can and cannot access this important economic safeguard.”