State’s Rainy Day Fund Among Country’s Strongest
Connecticut’s rainy day fund has risen to fifth strongest in the nation.
That’s according to a new report from The Pew Charitable Trusts, which measured how long each state’s rainy day fund could support government operations.
The $3.1 billion rainy day fund could keep Connecticut open for nearly 70 days, up 11.2 days from 2020’s reserve, and behind only Alaska (73 days), West Virginia (76), North Dakota (106), and Wyoming (301).
The report also showed that the reserves grew second fastest nationally, behind New Jersey.
This news comes on the heels of Connecticut’s bond credit rating being upgraded by four major credit rating agencies in May and the state moving up eleven spots to 24th best business climate on CNBC’s America’s Top States for Business study.
In 2011, the state’s rainy day fund was nearly depleted, with a balance of just $48,000.
The 2017 bipartisan state budget agreement, which included a number of fiscal reforms, was the catalyst for restoring the fund, which now has an historic balance of $3.1 billion.
While Connecticut has amassed—and subsequently lost—billions in surplus revenue in the past, Sen. John Fonfara (D-Hartford), credited a “culture change” at the state Capitol as to why it now will be managed differently.
“My colleagues have seen the benefit of the budget reserve fund,” Fonfara told the Connecticut Mirror.
CBIA president and CEO Chris DiPentima said the fund’s balance “was a sign of the strength of Connecticut’s growing economy.”
“Our legislature has renewed its focus on making Connecticut an attractive and competitive place that people want to live in, and we look forward to continue advocating for our state’s growth,” he said.
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