FY2023 Rainy Day Fund
FY2022 Rainy Day Fund
What is a Rainy Day Fund?
The Rainy Day Fund is where the state safeguards reserves for potential economic downturns. States typically see less tax revenue and increased spending on social services during an economic downturn. If a state has set aside funds during periods of economic growth, this means the state will face less pressure to cut discretionary programs, e.g. higher education.
Sources: Pennsylvania’s FY 2022-23 state budget, The Pew Charitable Trusts publication Fiscal 50: State Trends and Analysis, The Pew Charitable Trusts publication States Build Their Reserves Amid Growing Uncertainties, and the National Association of State Budget Officers publication The Fiscal Survey of States Fall 2021.