MISSOURI SHOULD NOT BE SHORT A SAVINGS ACCOUNT

The state government of Missouri quietly did something good last week. The reason it was done quietly, perhaps, is that it was done seven years late. In contributing for the first time to the legislatively created "Rainy Day Fund," Missouri officials are finally taking a step toward setting some public dollars aside to deal with unexpected situations. Such a savings account, properly supported and in timely fashion, would have eased the state's path through the recent economic downturn.

This fund is hardly a novel idea. Most households and many governments sock away money for a "rainy day." Officially tagged the Budget Stabilization Fund, the Missouri account was conceived seven years ago to impound a small portion of tax revenues regularly for use during times when revenues aren't so plentiful. Working as it should, the fund would temper acute swings high to low in the state budget picture.

While all this sounds good in theory, the state bungled its execution by not funding the account until last Tuesday. That initial deposit $17.2 million came from leftover funds generated by a temporary sales tax in 1989. The law that enabled this tax required that its balance (beyond the limited purpose it was intended for) be placed into the fund. In the future, specific action by state officials will be needed to feed this fund.

It is our hope the fund can be built to a reasonable level and will be no longer be ignored as it has been the last seven years. The "Rainy Day Fund" makes good sense. A fiscally responsible Missouri should not be without a savings account.