Why not use rainy day fund? - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Why not use rainy day fund?

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AUSTIN, TEXAS - While almost every state agency is facing big cuts, Texas has a rainy day saving account with almost $9 billion in it, and a lot of the people are asking why this recent shortfall isn't seen as a big enough monsoon to use that.

"If you have a reserve funds it affects your credit ratings. Like ways if it's gone for whatever reason, it might affect your credit rating," Representative Warren Chisum said. 

Plus, it's not a fund you can use for appropriations. You can only pay existing bills with it. That means if a shortfall somehow happens after a budget is already approved, then the money could be used. And it probably would still require a two-thirds vote which is hard to get.

But the biggest concern is that economically things could always get worse, and once that rainy day fund is gone, you can't get it back to use later.