OBM: Rainy Day Fund reaches ‘record’ level; August revenues exceed estimates

The Office of Budget and Management (OBM) announced that the state’s Rainy Day Fund (RDF) stands at a record of nearly $3.7 billion, “an increase of $174.7 million following the accrual of interest at the close of FY23 and the completion of a cash transfer into the fund” as authorized by the FY24-25 budget bill, HB33 (Edwards). This is an increase over the “historic high” of the fund announced earlier this year when it reached nearly $3.5 billion. 

The Rainy Day Fund – aka the Budget Stabilization Fund (BSF) – “is a reserve balance set aside during good economic times to protect the state budget from cyclical changes in revenues and expenditures that may occur during bad economic times,” OBM explained. HB33 increased from 8.5 percent to 10 percent, the minimum amount of the General Revenue Fund (GRF) revenues for the preceding fiscal year intended to be maintained in the BSF, the Legislative Service Commission explains in the HB33 compare doc. 

The Rainy Day Fund stands at precisely $3,650,848,109.92. 

In addition, for August, the second month of FY24, OBM reports that revenues were $37.7 million or 1.4% over estimates. Both the non-auto sales tax and the Commercial Activity Tax (CAT) were over estimates while the personal income tax and the auto sales tax were below. 

Specifically, the non-auto sales tax brought in $42.1 million or 4.5% more than was anticipated and the CAT brought in $37.3 million or 8.8% more. 

Personal income tax collections were $36.0 million or 4% below estimates and the auto sales tax was $3.2 million or 1.6% under. 

For the year so far, revenues are running 1.1% or $50.8 million over estimates with a total of $4.7 billion in revenues. This is nearly $207.4 million or 4.6% more than had been collected last year this time. 

August 2023 revenues are $146.8 million or 5.9% higher than revenues in August 2022.