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Two "Rainy Day" Funds Go Into Effect

By Associated Press

Montgomery, AL – Two state rainy day savings accounts took effect after a state canvassing board certified the results from the general election.

The accounts went into effect Tuesday. The accounts could provide as much as $620 million to lessen or prevent state budget cuts this year.

Voters approved Amendment 1. It was a constitutional amendment to to expand a rainy day account for public schools and create one for state agencies, by a margin of 56.8 percent to 43.2 percent.

The board's approval of final election results means Riley can now withdraw money from the accounts to prevent or limit cuts in budgeted spending caused by lower-than-expected revenues.

The money would come from the Alabama Trust Fund, a state investment pool worth about $3 billion.

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