PROVIDENCE – Rhode Island could operate for 19.8 days on the reserves in its rainy day fund, which is the longest time period among the New England states, according to The Pew Charitable Trusts, which updated its 50-state data on reserves and balances on Thursday.
Rainy day funds, also called budget stabilization funds, were the largest component of states’ financial cushions in fiscal 2016, accounting for nearly $2 of every $3 daily balances, Pew said.
It said that nationally, rainy day funds held $48.2 billion in fiscal 2016, more than before the recession in both nominal dollars and as a share of government expenditures. Pew said states set aside enough in these funds to run operations for a median of 17.9 days in fiscal 2016, or 4.9 percent of general spending, which is more than a median of 16.5 days, or 4.5 percent of general spending, in fiscal 2007.
Alaska can operate for the longest time on its reserves at 421 days. Wyoming was the only other state with more than a year’s worth of operating costs in its rainy day fund at 397.5 days.
Connecticut was one of six states with less than a week’s worth of operating costs at 4.8 days. After Rhode Island, Vermont had the next-longest number of days in which it could operate on reserves in New England at 19.4, followed by Massachusetts at 15.4 days, New Hampshire, 14 days, and Maine at 13.6 days.
Nevada and New Jersey had nothing in their savings accounts, according to Pew.
Running on total balances
Pew said that total balances in states’ general fund budgets, including rainy day funds, were large enough to run government operations for a median of 34.9 days in fiscal 2016, or 9.6 percent of spending, compared with 40.7 days in fiscal 2007, or 11.1 percent of spending. States’ total balances were $73.3 billion in fiscal 2016.
Wyoming led the nation in this category with the largest total balance as a share of operating costs at 397.5 days worth, while Alaska this time was second at 171.1 days.
Rhode Island could operate for 37 days. Connecticut again was among four states with less than a week’s worth of operating costs at 4.8 days.
New Hampshire’s total balance at 48.3 days can cover more days’ worth of operating costs than at any point since at least 2000.
The rest of New England’s results were as follows: Maine’s total balance can cover 21.5 days of operating costs, Vermont’s was 19.4 days, and Massachusetts’ was 17.2.
Lori Stabile is the PBN Web Editor.
