ILLINOIS — Illinois could cover just over 0 percent of its annual general fund expenditures using only its rainy-day fund, the lowest rate among the 50 states, according to a new study from the Tax Foundation.
The states that rely most heavily on volatile revenue from oil, gas and other extracted natural resources – Wyoming, Alaska, North Dakota and New Mexico – had the most robust revenue stabilization funds, according to the analysis. Such states often need to sock away a larger amount of excess revenues during prosperous years to fund state operations when oil and gas prices drop, the study reported.
The rainy-day funds allow states to prepare for inevitable downturns in the economy, according to the Tax Foundation. The funds are now a standard component in states’ fiscal toolkits, the analysis said. Kansas and Illinois have the least in their rainy day funds—Illinois with very little (only $4 million), and Kansas with nothing at all.
What’s the Status of Your State’s Rainy-Day Fund?
|Rank||State||Rainy-Day Balance as % of General Fund Spending|
Source: Tax Foundation
Due to data availability, Michigan, North Carolina, Oklahoma, and Wisconsin numbers are from 2019, and numbers for Georgia are from 2018. All other info is from 2020.