Governor supports rainy-day fund

Governor Beebe mentioned the potential for a "rainy-day fund" this morning on his monthly call-in radio show as a way to protect essential services in the event of an economic downturn. Rep. Bruce Maloch filed legislation last session to set aside some of the surplus for a rainy-day fund, and even though it was enacted, it was not funded. Such a mechanism would help stave off tax hikes if we find ourselves with a shortfall, but setting aside part of the surplus would also reduce the amount available for meaningful tax relief (assuming there is a surplus once we convene on January 12). We'll know much more of the governor's fiscal recommendations for the next biennium once he presents his budget proposal on November 13.