![]() Twelve states have rainy day funds between 15 percent and 25 percent of state spending. On average, state rainy day fund balances equal 15.4 percent of state spending, but the six slakers’ balances equal less than 5 percent. Even so, several states have very low balances, and you likely won’t be surprised at the slackers-New York, New Jersey, Illinois, Washington, Hawaii and Montana. The Tax Policy Center reported last month that state rainy day fund balances have reached an all-time high. Forty-eight states have created a “rainy day fund.” (Note: Colorado and Illinois do not have a rainy day fund as defined by the Pew Charitable Trusts, even though surveys by the National Association of State Budget Officers claim the two states have rainy day balances.) President Trump proved to be nearly as big a spender as President Obama. But while Republicans talk fiscal responsibility, most of them don’t vote that way, even when they have controlled the White House and both houses of Congress. We wish we could say that only Democrats were behind the spending spree. In other words, Washington spent 40 percent more than it received. The problem is the federal government only took in $3.97 trillion in 2023, leaving a $1.53 trillion deficit. That’s down slightly from the $6.27 trillion it spent in FY2022. Treasury Department, the federal government spent $5.5 trillion in FY2023 (the government’s fiscal year runs from Oct. Washington spends every cent it takes in and borrows the rest.Īccording to the U.S. Most states do the same thing, but not Congress and the White House. And even those who live paycheck to paycheck may try to limit their current expenses so they can borrow money or use a credit card when needed. Wise and prudent individuals and families set aside some portion of their assets just in case some unexpected event-e.g., medical expenses, car or appliance problems, home repairs, etc.-needs to be addressed.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |