I see the point of the state keeping some money on hand, however if that money is indeed my tax dollars and the state is just going sit on it, then in effect I am forced to give the state an interest free loan.
That’s what frustrates me when I see people get all giddy when they get a large tax refund every year. I see no joy in getting back a loan that I was forced to give for no interest.
When dealing with a Nation or “State” as it were, running around a 1 to 2% surplus or deficit is about where you want to be at all times. A little under, a little over, and hopefully right at 0 over the long haul.
A little cushion at this time seems prudent.