Rainy Day Fund will help soak up Virginia's budget shortfall for now
The rainy day came sooner than expected for Gov. Terry McAuliffe and General Assembly budget leaders.
The $1.5 billion shortfall that McAuliffe will announce Friday will require the state to tap the Revenue Stabilization Fund, or rainy day fund, to fill an estimated $420 million of the hole in this fiscal year and an additional $210 million in the second.
But first, the administration will have to deposit $605 million in the fund that the governor and legislature included in the two-year budget, and the General Assembly will have to agree to tap the fund when it convenes in January for a 45-day session.
Any withdrawal has to be appropriated, Secretary of Finance Ric Brown said Thursday.
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