States Got More Than a Rainy Day With COVID-19.

• Position: State Stats - Budget stabilization

To prepare for a possible recession, state lawmakers have been building up their budget stabilization--or rainy day--funds for nine years straight, reaching a record combined total of $74.9 billion in fiscal year 2019, according to The Pew Charitable Trusts.

Rainy day funds can lessen the pressure fixed costs--like debt service, retirement system contributions, Medicaid and the Children's Health Insurance Program--can have on a budget during economic downturns.

Funds were at an all-time high in early March and, on average, could be used to run government for almost 30 days, compared with just 17 days in 2007.

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