State Budget Reserves Among the Best in U.S.

October 29, 2021

I would like to share some excellent fiscal news regarding Connecticut’s Rainy-Day Fund. The state currently has $3.1 billion saved to the fund making Connecticut a national leader in budget reserves! According to The Pew Charitable Trusts, only New Jersey's reserves grew faster than Connecticut's in 2020 despite a global pandemic.

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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 that 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 savings 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!