© 2021 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
Available On Air Stations

Report Says State Government Short On Savings

WKAR File Photo

A downturn in the economy would quickly drain the state’s “rainy day” savings. Michigan Public Radio’s Rick Pluta tells us that’s the determination of an independent analysis.

Michigan’s “rainy day” fund can help the state weather a recession without deep cuts or tax hikes. But that requires lawmakers to deposit generously when times are good.

Craig Theil is with the non-partisan Citizens Research Council. He says lawmakers tend to focus on boosting funding for services or cutting taxes when there’s a revenue windfall.

“During an improving economy, there’s this third option, which is putting money away for the rainy day.” Says Theil.

There is currently about 700 million dollars in the fund, which zeroed out during the last recession.

News from WKAR will never be behind a paywall. Ever. We need your help to keep our coverage free for everyone. Please consider supporting the news you rely on with a donation today. You can support our journalism for as little as $5. Every contribution, no matter the size, propels our vital coverage. Thank you.