South Carolina ranks 13th in U.S. in rainy day fund reserves
(The Center Square) – South Carolina has 42.8 days of reserves in its rainy day fund, according to a new report from the Pew Charitable Trusts.
The report ranked South Carolina 13th-best in the U.S. for the number of days its rainy day fund could keep the government running based on estimates at the end of the previous fiscal year, which ended June 30.
Rainy day funds, also known as budget stabilization funds, are money states keep on hand to cover for any revenue issues to ensure that the government continues to operate.
South Carolina’s total this year is a decrease from the 49.9 days of rainy day fund reserves the fund had a year before. South Carolina’s rainy day fund has fluctuated over the past 15 years. The state didn’t have any reserve days in its rainy day fund in 2009.
The current balance is estimated to be $1 billion, or 11.7% of the state’s annual expenditures.
Pew’s report said there was a $4.6 billion increase nationally in rainy day funds, reaching a new high of $82 billion.
Preliminary estimates from the National Association of State Budget Officers show the average state could run its government operations on rainy day funds for 29.4 days, which is equal to 8.1% of overall spending.
The National Association of State Budget Officers report said South Carolina had enough in overall reserves (more than $2 billion) to pay for 88 days of expenditures; the sixth-longest amount in the U.S. That raw total was more than $2 billion in overall reserves, equal to 24.1% of the state’s annual spending.
Disclaimer: This content is distributed by The Center Square
