Wolf: Newly-bolstered reserve fund is ‘pathetic,’ but a big improvement

State leaders will transfer $317 million into the state's rainy day fund.

• Katie Meyer
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  Katie Meyer was WITF’s Capitol Bureau Chief from 2016-2020. While at WITF, she covered all things state politics for public radio stations throughout Pennsylvania. Katie came to Harrisburg by way of New York City, where she worked at Fordham University’s public radio station, WFUV, as an anchor, general assignment reporter, and co-host of an original podcast. A 2016 graduate of Fordham, she earned several awards for her work at WFUV, including four 2016 Gracies.
  
  Katie is a native New Yorker, though she originally hails from Troy, a little farther up the Hudson River. She can attest that the bagels are still pretty good there.
  
  WITF's Capitol Bureau Chief Desk is partially funded through generous gifts made in the memory of Tony May through the Anthony J. May Memorial Fund.
  
  For more information about Tony May, click here.

 Matt Rourke / AP Photo

FILE PHOTO: Shown is the Pennsylvania Capitol building Tuesday, Dec. 8, 2015, at the state Capitol in Harrisburg, Pa.

(Harrisburg) — State leaders have confirmed that this year, they’re poised to authorize the largest transfer to Pennsylvania’s rainy day fund in years: $317 million.

The fund has been in rough shape since the Great Recession, when then-Governor Ed Rendell used up all $755 million lawmakers had stockpiled.

That, of course, is the purpose of a rainy day fund. And it wasn’t unheard of–during the 2001 recession, Governor Mark Schweiker drained a considerable portion of a more-than-billion-dollar reserve.

But after 2009, the state had trouble putting money back in.

Last year was the first time there’d been any major deposit, and it was $22 million–enough to run operations for just a few hours.

Governor Tom Wolf, Treasurer Joe Torsella, and Lieutenant Governor John Fetterman confirmed the rainy day fund deposit Tuesday. (Katie Meyer/WITF)

State Treasurer Joe Torsella said the latest deposit will improve that–though the progress is relative.

“With today’s announcement, I think we’re at approximately four days,” he said.

Democratic Governor Tom Wolf said the commonwealth still has “a long way to go” in building savings back up.

A three or four-day reserve is “pathetic,” he said. “But it’s better than zero days–better than a couple hours, which is where we used to be.”

Torsella said on average, states’ reserves can keep them running for about three weeks.

He recommended that Pennsylvania get more measured about its stewardship by, for instance, conducting a volatility study to see what reserve level it should ideally aim for.

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