The Senate’s version of SB 296, now in the House Finance Committee, appropriates $2.6 billion of the current projected revenue surplus to the constitutional budget reserve. An additional $1 billion would be appropriated to the statutory budget reserve, a second cash account. The $3.6 billion to be placed in the two funds, when combined with $3.1 billion now in the CBR and $6 billion in the permanent fund’s earnings reserve account, would give the state $12.7 billion in liquid cash reserves that could be tapped to meet a revenue emergency.

The permanent fund’s earnings reserve, unlike the permanent fund principle, can be appropriated by the Legislature to meet public needs.