Governor Wants Primary Budget Reserve Guarded
January 23, 2009, 5:30 PM
Governor Rounds says state government's primary budget reserve should be kept intact, even in tough budget times like this.
The Republican governor disagrees with a proposal by Democrats to use $15 million from the budget reserve to help balance a state budget being squeezed by a drop in tax collections. The budget reserve contains about $43 million. Rounds says it should be set aside for emergencies that can be met with one-time spending, like the costs of a blizzard or forest fire.
Senate Democratic Leader Scott Heidepriem says the budget reserve was created specifically for times such as the state currently faces.
The state has a second savings account called the property tax reduction fund. Rounds wants to take $35 million from that fund this budget year and $28 million next year.
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