Running budget surpluses, cutting taxes, and maxing out the rainy day fund

Excerpt from the Feb. 13 Oinkonomics podcast interview of former Secretary of Finance Steve Cummings about Governor Glenn Youngkin’s fiscal legacy:
“We were able to generate $10 billion in cumulative surpluses. Some of that was last year, where a conservative position was taken at the end of the year to hold some money back in addition to our reserve fund. The extra dollars that were held back in the budget added another $900 million. So, $10 billion of cumulative surplus, the ability to return $9 billion to taxpayers within the four-year term of the Governor. Much of that is recurring. That will continue forever. So, itโs not one and done.
“We did have rebates [based on] one-time events. We took a rainy-day reserve fund from about $2.5 billion at the end of the Northam administration. Itโs now $4.7 billion. It is at the required level. As compared to the other 13 or 14 AAA-rated states, we are the number two funded rainy-day reserve fund. At the beginning, we were third from the bottom. So, taxpayer money, rainy day reserve fund, and then you just go through the list of major policy areas that were able to get accomplished. Economic development Iโd put first, and that ties into what we have been able to do with respect to the general fund revenue side, has really been stunning.”












