Economy

These governors want to tap emergency savings, a sign of budget stress

“Governors proposing rainy day fund withdrawals in their FY 2027 budgets signals that the pressure really hasn’t eased up.”
FILE -Kentucky Gov. Andy Beshear delivers his State of the Commonwealth speech in front of a joint session of the legislature from the floor of the Kentucky House of Representatives, Wednesday, Jan. 4, 2023, in Frankfort, Ky. In his latest effort to ride the power of incumbency to reelection, Kentucky Gov. Andy Beshear touted the state’s newest round of job-creation successes, honored a retiring police officer and highlighted recovery assistance for a flood-stricken region. (AP Photo/Timothy D. Easley, File)

Governors in at least six states have proposed pulling money from emergency savings this year to cover shortfalls or fund their priorities. 

The proposals in Alaska, Kentucky, Maine, Maryland, Pennsylvania and Washington State illustrate the growing fiscal pressure states are under as tax collections slow and the cost of providing core services such as education and health care rises, according to fiscal policy experts.

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