3 Points Informed Intel. 1 State Lessons on Rainy Day Fund.

Utah, home to the Great Salt Lake, and held out as an example of Rainy Day Fund Policy.

Rainy Day Fund lessons from the west:

• Stress Test. The Utah Legislature’s budget staff put the state’s finances to a fiscal stress test
  • This let budget writers know forecasted spending and revenue under conditions of severe economic stress
• Stress Test Lesson 1. Rainy Day Fund is large enough.
• Stress Test Lessonn 2. legislators began talking about  “proactive budget adjustment” when talking about how spending may impact stress test results
• Stress Test Lesson 3.  Rainy Day Funds can “stabilize the often volatile politics of state budgeting”

Governing | The Great Recession’s Lessons on Rainy Day Funds