* Pretty sure we’ve discussed this before, but it’s worth repeating every now and then. From Finke’s column…
The National Conference of State Legislatures recently took a look at rainy day funds, money state’s put aside to help cushion the blow in the event of an economic downturn.
The organization said only two states don’t have an official rainy day fund, although one of them, Colorado, has a “required reserve” fund. That leaves only Illinois without one, NCSL said.
That’s a bit misleading. Illinois has a “Budget Stabilization Fund,” which is essentially a rainy day fund under a different name. Right now, it has $60,000 in it, which the comptroller’s office said will pay less than 30 seconds worth of state bills.
…Adding… As noted in comments, it makes little sense to establish a large rainy day fund while the state has so much debt. However, building in a bit of fiscal flexibility would still be a decent idea.