The state’s rainy day fund has come in quite handy over the past two budget sessions. Lawmakers resisted the push to spend it all the first year the state got into financial trouble.
It was used over the past two budget years and is now being replenished as state tax revenues begin to climb from the worldwide economic recession. State Treasurer Ken Miller told local Republicans it will take several years to reach pre-recession levels. A deposit of between $75 million and $80 million will be made this year.
Voters raised the maximum amount that can be put into the fund.
Norman City Council members are wrestling with similar issues. The city, for some time, has set aside some funds for emergency situations or for those periods when the revenue does not meet budgeted expectations.
The ordinance being considered would allow a reserve of up to 6 percent of budgeted expenditures. An initial $550,000 appropriation from the fiscal year 2012 budget year is part of the ordinance to be considered later this month.
Formalizing the savings account feature seems like a worthy idea. The state does it, schools do it and the county does it. It is only putting into law what administrators, the mayor and the council have done for some time.