Idaho budget committee OKs increase in rainy-day funds

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Idaho legislative budget-writers have endorsed Governor Brad Little’s recommendation to increase the amount of money in the state’s rainy-day reserve fund.

The Joint Finance-Appropriations Committee Friday voted for the Idaho House to hear the bill to raise the Budget Stabilization Fund to 15 percent of general fund revenues, up from the current 10 percent cap. State officials say the change plus deposits would get the fund to more than $600 million by next year.

Pushing the fund cap to 15 percent became part of Little’s strategy following what state officials called a credible stress test that looked at how much money the state would need to withstand an economic downturn.

While Democratic Representative Melissa Wintrow voted for the measure, she noted the state was making budget cuts of 1 percent this year and 2 percent next, adding that universities were having to make cuts at a time when the economy was strong.  (AP)

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