In this week’s Monday Map, we take a look at the size of each state’s rainy day fund balance prior to the beginning of the recession in 2007. The map illustrates a state’s rainy day fund balance as a percent of its annual general fund spending. Oregon, Montana, Colorado, Kansas, and Arkansas were the least prepared for economic hardships with rainy day funds equal to 0% of their general fund spending. Not far behind were Michigan (0.02%), Wisconsin (0.43%) and Illinois (0.97%). Certain states, however, were much better prepared. Alaska’s rainy day fund was by far the most secure; prior to the recessionA recession is a significant and sustained decline in the economy. Typically, a recession lasts longer than six months, but recovery from a recession can take a few years. , it was equal to 49.89% of the state’s general fund spending. Next best prepared were North Dakota (17.79%), Nebraska (16.13%), and West Virgiia (13.59%).
Stay tuned next week, when we will take a look at rainy day funds for each state in 2013.
All maps and other graphics may be published and re-posted with credit to the Tax Foundation.
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Additional recourses:
Joseph Henchman, “Top 10 State Tax Trends in Recession and Recovery: Insufficient Rainy Day Funds” (6/5/12)
View previous maps here.
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