RALEIGH – House Bill 7, LRC/Strengthen Savings Reserve, would require 15 percent of annual projected state revenue increases be set aside into the state’s Rainy Day Fund. This, along with other measures restricting the ease with which funds from the account can be appropriated, will better grow and preserve the savings reserved for difficult fiscal times.
In the Great Recession beginning in 2008, a woefully underfunded savings reserve contributed to a severe fiscal crisis as revenue crashed along with the economy. A robust, and well-guarded, savings reserve will be a key component to ensure North Carolina is well prepared for the next, inevitable fiscal downturn.
Civitas Action supports financially prudent moves such as this that will prevent fiscal crises in the future, helping to avoid bad policies such as “temporary” tax hikes to cover revenue shortfalls.
Civitas Action fully intends to grade any votes taken on House Bill 7 in its 2017 Civitas Action Conservative Effectiveness Ranking, and the grades will be updated to the website within one or two business days following the vote.
“The alert will indicate Civitas Action’s stance on the bill, clearly communicating how a ‘yes’ or ‘no’ vote will impact a legislator’s score, before they vote,” said DeLuca. “This process should eliminate surprises for legislators when they look at their conservative ranking.”
Civitas Action is a 501(c)(4) non-profit that educates and informs North Carolinians on policy issues and the actions of their elected officials.