State Deposits $116 Million in Rainy Day Fund
Massachusetts has the third-largest reserve fund among U.S. states.
Thanks to low borrowing rates, Massachusetts was able to end the fiscal year with a $116 million surplus, the Patrick Administration announced this week.
The money will be deposited into the Stabilization Fund, also known as the "rainy day" fund.
"This is the third year in a row that the Rainy Day Fund balance has increased over the prior year’s closing balance as a result of the prudent fiscal policies and strong fiscal management by the Patrick-Murray Administration and the legislature," an administration press release read.
This deposit brings the "rainy day" fund balance from $1.379 billion at the end of FY11 to $1.652. The only two states with a higher reserve fund balance are Alaska and Texas due to billions of dollars of oil tax revenues those states collect, according to the release.
Massachusetts, however, is able to generate a surplus by savings from a low borrowing rate due to the state's high credit rating.
Secretary of Administration and Finance Jay Gonzalez certified earlier this month that projected revenues continue to be sufficient to meet projected expenditures for 2013.