LINKS AND OTHER RESOURCES

National Studies

The Center for Budget and Policy Priorities has done several studies on states’ rainy day funds. Their most recent report, “Heavy weather: are state rainy day funds working?” looks at the effectiveness of rainy day funds over the past recession.

The Center on Budget and Policy Priorities also produced an earlier state-by-state look at rainy day funds in 2002.

Gary Wagner examines the efficacy of rainy day funds in, “Are state budget stabilization funds only the illusion of savings? Evidence from stationary panel data.” Forthcoming in Quarterly Review of Economics and Finance. (2002).

Gary Wagner is also the author of a working paper entitled, “Fiscal stress and rainy day funds: are they the answer for brighter days ahead?”

On the issue of fund size, an article in Public Budgeting and Finance, Philip Joyce asks, “What’s so magical about five percent? A nationwide look at factors that influence the optimal size of state rainy day funds.” (Summer 2001)

A report from the Center on Budget and Policy Priorities (1999) also looks at the question of fund size in, “When It Rains It Pours: A Look at the Adequacy of State Rainy Day Funds and Budget Reserves.”

Earlier, Sobel and Holcombe, in a Public Budgeting and Finance article examined, “The impact of state rainy day funds in easing state fiscal crises during the 1990-91 recession.”

In a more general vein, The Center on Budget and Policy has recently taken a look at current fiscal crisis on the state level in “The state fiscal crisis: extend, causes, and responses.”

A recent article in New Federalism by Kenneth Finegold, Stephanie Schardin and Rebecca Steinbach examines various approaches states are taking to alleviate fiscal stress.

Similarly, the National Conference of State Legislatures’ study, “State strategies to manage budget shortfalls,” also looks at recent budget shortfalls and states’ responses. .

In Economic Perspectives, Leslie McGranahan’s article, “Unprepared for boom or bust: understanding the current state fiscal crisis” looks at the effectiveness of state strategies for dealing with the ebb and flow of the business cycle.

Colorado Sources

Colorado Treasurer Mike Coffman has written several pieces on the issue of a rainy day fund for Colorado. His electronic newsletter, Treasure-E-Notes earlier this year contains the article, “A rainy day fund for Colorado.”

In addition, the Treasurer’s office issued a press release late last year, “Coffman proposes rainy day fund.”

Treasurer Mike Coffman and Barry Poulson jointly authored a guest commentary in the Denver Post titled, “Adjust TABOR to create rainy-day fund” (January 5, 2003)

Barry Poulson has written an analysis of the current fiscal crisis in Colorado that includes a section examining the possible creation of a rainy day fund for Colorado for the Independence Institute.

Daphne Greenwood has written a piece for the Denver Post, “Colorado Needs a Rainy Day Fund.” Denver Post (September 28, 2001). Also available online through the Center for Colorado Policy Studies, University of Colorado at Colorado Springs, at http://web.uccs.edu/ccps/newsite/TABOR.rdf.pdf.

Studies from Other States

Kentucky: Office of the Kentucky State Budget Director. “The importance of state rainy day funds: The Kentucky Budget Reserve Trust Fund.” Policy Paper Series I, Issue 1 (October 2001).

Texas: House Research Organization, Texas House of Representatives. “Cash-Strapped states tap “rainy day funds.” Interim News, No. 77-6 (March 25, 2002).

Washington D.C.: Lazere, Ed. “Fixing DC’s rainy day fund.” D.C. Fiscal Policy Institute (2003).

Washington: “Washington state tax structure study, appendix D” (“Rainy Day Fund”).