Baker pitches plan to build state's reserve fund
BOSTON — The governor and his budget chief on Thursday morning pitched investors on their proposal to change the way the state stashes away money in its rainy day fund, an account that rating agencies give serous weight to when assessing the state's creditworthiness.
On a conference call with investors and potential investors, Gov. Charlie Baker said the legislation he included with his fiscal year 2018 budget plan represents a "new, more practical approach to building our stabilization fund" and would put "the state in a better position to deal with any challenges that may come in the future."
The state's stabilization fund -- or rainy day fund -- is similar to an emergency savings account, a reserve maintained to bolster the state's fiscal stability. The fund was created in 1986 as one in a series of financial reforms, but it was emptied out to balance the 1989 budget before being re-seeded, according to the Massachusetts Taxpayers Foundation.
Currently, capital gains revenues above a threshold amount agreed to during the consensus revenue process are directed to the stabilization fund.
Read more: http://www.berkshireeagle.com/stories/baker-pitches-plan-to-build-states-reserve-fund,500036