Excellent Fiscal News For Connecticut

November 1, 2021

I would like to share some excellent fiscal news regarding Connecticut’s rainy-day fund. Our state currently has $3.1 billion saved in this fund, making Connecticut a national leader in budget reserves! The Pew Charitable Trusts found that, in 2020, Connecticut’s reserves grew the second-fastest nationally, even in the midst of a global pandemic.

With $3.1 billion in savings, the state has the ability to operate essential programs and services such as education, healthcare, and municipal aid for nearly 70 days in the event of an economic downturn or natural disaster. 
 
Our rainy-day fund is a critical resource in times of budgetary uncertainty. These reserves are a financial cushion which can soften the need for severe spending cuts or tax increases. 
 
The profound growth of the rainy-day fund, from only $138 million in 2017 to $3.1 billion in 2021, is the result of smart fiscal policies, such as the strong bipartisan budget and saving reforms passed in 2017. 
 
Overall, our abundant rainy-day fund is great news for the future of Connecticut as we continue to pay down our debts and emerge from the pandemic stronger than ever!