The Rainy Day Fund: Intended for Long Slow Drizzles or Tsunamis?

     The House is voting today on a bill that would use $3.2 billion of the $9.4 billion in Texas'
Rainy Day Fund to close the budget gap for this fiscal year. Governor Rick Perry is publicly against the use of the Rainy Day Fund for what he calls "recurring expenses", which amounts to anything budget related. Perry is insisting that the Fund is for emergencies more on par with the natural disaster sort, and referenced Japan's recent tragedy. He seems to be forgetting that the Rainy Day Fund's real name is The Economic Stabilization Fund. It was created for precisely this kind of situation.The recession slowly starved the state of sales tax that normally would supply the funds for a balanced budget and The Economic Stabilization Fund is meant to help the state meet basic needs during times of down turned economics. The basics are not being met and I think this long slow drizzle counts as a rainy day.
     Perry also stressed that he wanted every budget chopping option exhausted before considering the Fund.
I see what he is saying, Texas is facing a $15-27 billion dollar deficit for next fiscal year. The current fiscal year is more than half way through so if they can't figure out how to close a less than 4 billion dollar gap now, how will they do it for the five times larger deficit they will be facing in a few months?
     Well, there are a few things that should be considered when discussing Texas' budget crisis. First thing is that Governor Perry refuses to accept $830 million in federal aid. Perry won't take it because he would have to agree to put it towards education, and only education. Last time he was given a stimulus package ($3.2 billion) meant to go to schools and improving education standards he used to to cover other budget gaps he felt were more urgent. It isn't too late for him to accept the aid, and $830 million would take a nice chunk out of the existing deficit. The second thing to consider is the still changing number placed on the deficit. The comptroller originally placed it upward of $7 billion. A number of things have shifted that figure. Just this month the comptroller was able add another $300 million in funds for the budget from unexpected sales tax revenue. That means people are spending again,at a rate the state didn't predict, which makes it more difficult to accurately predict what funds will be available next fiscal year. Oil prices have also been on the rise, which historically means good things for Texas, and again, makes it difficult to predict the budget deficits. Perhaps if Perry accepts the federal aid and (goodness forbid!) raises taxes and some state fees we could continue to support Texans, get through a fiscal year on budget and not need to touch The Rainy Day Fund.
     As it stands, Perry would rather cut teacher's jobs, college grants, and medicaid benefits than be told how to spend *free* money. I don't think we can count on this man to recognize a rainy day even if he were drowning in a puddle.