Americans for Prosperity Applauds State House for Passing Bill to Strengthen Rainy Day Fund

Feb 15, 2017 by AFP

Grassroots organization asks whether Cooper will continue to oppose common sense rainy day fund

Raleigh, NC – Americans for Prosperity – North Carolina today applauded the state House of Representatives for passing House Bill 7 – LRC/Strengthen Savings Reserve. The bill passed its second reading on a vote of 110-3.

Americans for Prosperity – North Carolina State Director Donald Bryson issued the following statement:

“Responsible fiscal legislation like this bill will protect taxpayers from future tax increases. With a companion bill moving through the state Senate, the larger question is how Governor Cooper will view this bill, who has been hostile to a well-funded reserve fund in the past. We hope he supports this legislation rather than continuing to oppose our state’s proven rainy day fund.

Bryson continued, “North Carolina will be faced with economic downturns and natural disasters in the future. We applaud the lawmakers who are making the difficult, but fiscally responsible to build a substantial reserve fund.”

House Bill 7 and Senate Bill 14 are “companion” bills that, if passed, would set mandatory transfers into a savings reserve for state government, as well as place a cap on how much the General Assembly could spend from the savings reserve. Senate Bill 14 has been sent to the Appropriation Committee, but has not yet been calendared for a hearing in that committee.

Background: Governor Cooper’s opposition to rainy day fund ignores key findings by the North Carolina Budget and Tax Center

Raleigh News & Observer, 9/6/2016: Cooper condemned state leaders for “building up the rainy day fund in excess of what’s necessary for the state. Instead of doing that,” Cooper said, “we could invest in our people.”

The Robesonian, 9/7/2016: “Cooper criticized the current emphasis by legislators to keep growing the state’s rainy day reserves, now at nearly $1.6 billion.” “You need to invest it and not let it just be sitting there,” Cooper stated.

North Carolina Budget and Tax Center, June, 2011: In contrast to Cooper’s dismissive comments, a policy brief by Edwin McLenaghan found that implementing a substantial rainy day fund would “protect public investments” and “minimize the negative effect of economic downturns,” while a failure to do so “leads to painful cuts to public investments and services that hurt the state’s economy and cause hardship for struggling families.”

Americans for Prosperity (AFP) exists to recruit, educate, and mobilize citizens in support of the policies and goals of a free society at the local, state, and federal level, helping every American live their dream – especially the least fortunate. AFP has more than 3.2 million activists across the nation, a local infrastructure that includes 35 state chapters, and has received financial support from more than 100,000 Americans in all 50 states. For more information, visit www.AmericansForProsperity.org
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