rainy day fund

The balanced budget outlook through 2025-26 also relies on $7 billion from the state’s rainy day fund, which Newsom and lawmakers previously agreed upon, and continuing to limit corporate tax deductions and credits.

Newsom’s plan to close the deficit relies on $17.3 billion in savings from budget cuts he and lawmakers agreed to in April and using $4.2 billion from the state’s rainy day fund and budget reserves for the upcoming fiscal year.

Democrats also agreed to draw down at least another $12.2 billion from the rainy day fund to cover their spending.

The governor’s January budget assumes revenues of more than $214 billion, an increase of 53%, for the upcoming fiscal year when Democrats plan to cut the rainy day fund in half.

As Maryland lawmakers reached the end of their legislative session Monday, a measure authorizing use of the state’s rainy day fund to help port employees had strong support and was expected to pass.