Gov. Tom Wolf recently suggested that Pennsylvania consider placing all excess revenue in the Commonwealth’s Rainy Day Fund, which is among the smallest in the nation.
The Department of Revenue recently announced that April revenues exceeded estimates, continuing a trend that has persisted throughout the Fiscal Year.
In April, Pennsylvania collected $4.4 billion in General Fund revenue, which was $464.7 million more than expected. Fiscal year-to-date General Fund collections total $29.2 billion, which is $828.2 million above estimate.
“Last year, we made the first Rainy Day Fund deposit in more than a decade, and with strong revenue growth, along with legislative leaders I remain committed to saving for our future,” Wolf said. “After taking care of our mandatory expenses and investments in schools and other critical services, I believe we should even consider putting all surplus revenue in the Rainy Day Fund. We have the opportunity to protect the commonwealth and taxpayers from future economic downturns and I look forward to engaging with the General Assembly on achieving this shared goal.”
Pennsylvania’s Rainy Day Fund currently stands at $22 million. In 2009, it was at $755 million before the funds were used to make up for revenue shortfalls during the recession. The current Rainy Day Fund can sustain commonwealth operations for only a few hours, while the average state Rainy Day Fund can support operations for more than 20 days.