By Bob Katzen

Senate 5-34, rejected an amendment that would require any excess revenue in capital gains revenue over $1 billion to annually automatically be transferred as follows: 80 percent to the Rainy Day Fund; 10 percent to the state’s Pension Liability Fund; and 10 percent to the State Retiree Benefits Trust Fund. The amendment would replace a section that distributes 5 percent to the Rainy Day Fund; 90 percent to the state’s Pension Liability Fund; and 5 percent to the State Retiree Benefits Trust Fund.

Sen. Bruce Tarr (R-Gloucester), the amendment sponsor, said that putting only 5 percent into the stabilization fund at a time when we recognize there’s a possibility of a downturn in federal support for our budget is not a good idea. He noted we have a stabilization fund to ensure we have those resources when we need them.

Sen. Mike Rodrigues (D-Westport), who voted against the amendment, said the Rainy Day Fund is currently already funded at an impressive gold standard of $8.1 billion. He argued that putting the majority of the funds into the Pension Liability Fund would be wiser and would boost the state’s bond rating.

(A “Yes” vote is for the amendment. A “No” vote is against it.)

Sen. Patricia Jehlen No