California Gov. Brown Wants to Set Aside 5B for Rainy Day Fund


Additionally, the governor pointed out that fully funding the Rainy Day Fund is the key part of his budget proposal.

Furthermore, Gov. Brown said, “We have to be on our guard. It’s not exciting, it’s not funding good and nice things, but it’s getting ready” for the next economic downturn.

Moreover, he said the state’s piggy bank or the Rainy Day Fund will be waiting for the next governor to manage. When a recession happens, his successor will be able to spend that money. He or she can prepare for different maneuvers to get through that recession.

Gov. Brown said, “The whole point is to think ahead and minimize the pain that is coming.”

Republicans share Gov. Brown’s concern

In response to the governor’s budget proposal, Senate Republican Leader Patricia Bates, said, “I’m encouraged that the governor wants to add an additional $3.5 billion into the state’s Rainy Day Fund.

“Republicans fought to establish the Rainy Day Fund and we share the governor’s concerns about a return to deficit spending as even a mild recession could lead to painful decisions in the future… Senate Republicans stand ready to help the governor pass a fiscally responsible budget for all Californians,” she added.