September 16, 2018

ONLY BELTWAY REPUBLICANS ARE UNPREPARED:

Most states are prepared for the next recession (Maylan Studart, 9/12/18, Yahoo Finance)

The collapse of Lehman Brothers a decade ago was a cataclysmic event that ushered in a financial crisis that would take over the country.

While some sectors, like housing, are still recovering, state governments have learned from the downturn and have built up their rainy day funds. So much so that they are well positioned to weather the next recession, which they know will occur. They just don't know when.  

"Rainy day fund balances, in the aggregate, grew steadily in the several years following the Great Recession, and have continued to increase as states have made building reserves a top budget priority," according to the National Association of State Budget Officers.

In the past seven years, the median rainy day fund balance grew from 1.9% as a share of fund expenditures to a high of 5.8% in fiscal 2018, above the pre-recession peak of 4.9%, NASBO said, with 30 states reporting increases in fiscal 2018 (seven decreased).

These seven fat years are when a functional party would have balanced the budget.

Posted by at September 16, 2018 8:59 AM

  

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