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"He does not have the legal authority."
That is what state Rep. Joe Hamm, R-Hepburn Township, representing the 84th House district, said of Gov. Josh Shapiro's plan to transfer $1.6 billion from the state's Rainy Day Fund as a way to bring revenue into the state.
Shapiro included the proposal in his $51.5 billion proposed budget address to legislators Feb. 4.
The Rainy Day Fund is where the state safeguards reserves for potential economic downturns, according to the state treasurer. States typically see less tax revenue and increased spending on social services during an economic downturn.
Shapiro's spending plan features a transfer of $1.6 billion from the Rainy Day Fund, while also using up the remainder of the state's General Fund surplus to fund the budget plan. If lawmakers approved the spending plan as is, the state's Rainy Day Fund would still have a balance of roughly $6.4 billion at the end of the 2025-26 fiscal year, according to the Shapiro administration's estimates.
"The governor, by law, does not have the authority," Hamm said.
Any time that fund is touched, it must happen only under conditions of a recession or economic downturn, Hamm said. If he tries to do that, as indicated in the proposal to legislators, there is a potential for a lawsuit being filed, Hamm said.