rainy day fund

steve carmody / Michigan Radio

A Michigan U.S. Senator says a federal aid package for Flint might move through Congress quicker if state officials tap the rainy day fund and budget surplus now. 

Sen. Debbie Stabenow and others have been pushing for hundreds of millions of federal dollars for Flint’s water crisis.

But action in Congress is stalled. Sen. Mike Lee, R-Utah, has put a hold on the legislation. He’s expressed concern that the state of Michigan hasn’t committed to spend more of its own money to address the crisis.  

What's the state of the rainy-day fund?

Oct 15, 2015
Money
Steve Carmody

The Michigan Legislature has approved $9 million to deal with the fallout from the Flint water crisis. That price tag has turned attention to how the state’s rainy-day fund is used.

Gov. Rick Snyder has made replenishing that fund a budget priority since he entered office.

Jennifer White spoke to Susan Demas, publisher of Inside Michigan Politics, and Ken Sikkema, former Senate Majority Leader and Senior Policy Fellow at Public Sector Consultants about the state of the rainy-day fund.

Demas says as of the last budget cycle there's about $386 million in the fund. 

Alan Cleaver / Flickr

LANSING, Mich. (AP) - Gov. Rick Snyder and lawmakers don't agree on how much money to set aside in Michigan's savings account.

The rainy day fund was nearly empty when the Republican governor took office after a decade of job losses and budget crises. He successfully built it back up to more than $500 million and is hoping to add another $75 million.

Snyder says a healthy cash reserve is good for the state's credit rating and prudent in case there are future economic downturns.

But the GOP-led Senate next week is expected to approve a budget without extra money in the account. Some legislators say savings are robust and the $75 million should go to other priorities instead.

The House is more in line with Snyder. Lawmakers will negotiate their differences next month.