Why States Save: Using Evidence to Inform How Large Rainy Day Funds
Should Growexamines budget stabilization funds-often called rainy day funds
-and offers recommendations to determine optimal savings goals and create enhanced budgetary flexibility over the course of the ups and downs of economic activity.
MOSCOW, Muharram 14, 1437, Oct 27, 2015, SPA -- Russia says it will likely deplete one of its two rainy day funds
by the end of next year as it tries to plug the state deficit amid the economic downturn, AP reported.
Rainy day funds
are one of the most common tools states have to soften the blow of economic downturns and budget shortfalls.
2012 rainy day funds
Arkansas United States Have funds 37% 40% No funds 58% 56% Arkansas vs.
It may take several attempts over a few sessions to get it exactly right, but we're hoping that we at least get the mechanism and some Rainy Day funds
available for it.
When rainy day funds
work, it is the strength of their withdrawal rules that matter.
In a 2005 policy brief titled "A Primer on State Rainy Day Funds
," the Institute on Taxation and Economic Policy in Washington, D.
Many states have bailed themselves out by using money that accumulated in their rainy day funds
when the economy was thriving.
The rainy day funds
cannot be spent without legislative appropriation.
Many states used the unexpected excess to supplement appropriations or fortify their rainy day funds
Lawmakers are still more likely to use debt-financing (bonds) or rainy day funds
(one-time infusions) than they are to vote for taxes or for fees that can be called taxes by future opponents.
Jennifer Granholm has suggested the state may want to set up multiple rainy day funds
, including a new rainy day fund
for schools, instead of adding the money to the current Budget Stabilization Fund.