Rainy Day Fund


Also found in: Acronyms.

Rainy Day Fund

1. In the United States, savings put aside by individual states to pay for services when revenues fall below expenditures. That is, when the state is required to spend money in excess of its tax and other revenue, it may use the rainy day fund to make up the difference. States put a certain percentage of their budget surpluses into their rainy day funds. Rainy day funds are especially important for states that have balanced budget amendments in place.

2. More broadly, any savings especially set aside for a specific purpose.
References in periodicals archive ?
The Legislature needs to take a deep look at the Rainy Day Fund," Bush told the newspaper.
He said: "This would be the perfect source of income to kick-start our rainy day fund which is expected to be set up in 2019.
Design rainy day funds with clear, objective goals that policymakers can refer to regardless of changes in governors, legislatures, and business cycles.
Vermont created a new rainy day fund similar to its Budget Stabilization Trust Fund, that gives the General Assembly, rather than the state's commissioner of finance and management, control over all withdrawals.
Two-thirds (68 percent) have had to dip into their rainy day fund in the past, with car repairs (25 percent), job loss (21 percent), and home repairs (20 percent) being the most common reasons.
The Scotland Office said the Edinburgh administration may now make their first payment into the rainy day fund.
In the 2009 session, we reached agreement to place some additional corporate tax revenues into the rainy day fund beginning in 2013, when our economy will be stronger.
A dummy variable for the presence of a rainy day fund (1 for states that have an RDF, 0 for states that don't) is expected to have a negative sign, because the existence of such a fund should reduce the need for spending cuts or tax increases during a recession.
25 billion in its rainy day fund, predictions for the current year are all over the map.
Although revenues fell slightly year-over-year in both fiscal years 2009 and 2010, the state did not draw on its rainy day fund, and managed the revenue declines with use of federal stimulus funds and spending reductions, continuing to generate surpluses and additions to the rainy day fund in each of these recessionary years.
As Texas awaits action from Washington, Turner said the state should be dipping into its emergency fund, better known as the Rainy Day Fund, to help Harvey victims.