With the balance at its lowest in five years, Prince George’s County officials indicate they plan to replenish the County’s rain day fund. The fund has been used to cover budget shortfalls, snow removal, and economic development incentives.
As reported by the Washington Post,
The county has $4 million in cash reserves, down from $116 million in 2010 and $22 million in 2014. The latter amount was enough to maintain the AAA bond rating that allows Prince George’s to borrow money relatively cheaply.
County officials say they want to build the fund back up to $30 million in coming years — enough to cover emergencies and ensure that the bond rating will remain strong.
The county safeguards 7 percent of its annual operating budget in an “economic stabilization fund,” which cannot be touched except in cases of extreme and dire emergency. There is about $200 million in that fund.
The remaining cash reserves include whatever other revenues exceed expenditures. That is the fund from which officials have withdrawn $65 million over the past two years to cover shortfalls and one-time expenditures, and it is the fund that county officials say must now be replenished.