Legislation Adds To Budget Cushion

Gov. Phil Batt has signed legislation depositing $8.5 million in the state’s Budget Reserve Account, building that cushion against emergencies to a balance of $36 million.

Batt had recommended putting more cash in the reserve in his budget message to lawmakers six weeks ago.

The legislation, combined with the tight revenue situation facing lawmakers this year, also worked to mute enthusiasm for a proposal to automatically divert 1 percent of general tax revenue to the reserve if revenue growth exceeds 4 percent. That plan has been approved by the House but is expected to languish without further action in the Senate.