By: Ted Dabrowski and John Klingner
Illinois had just $4 million of rainy day funds before the Coronavirus hit. That was enough to cover just one hour’s worth of the state’s $40 billion operating budget.
That finding is based on a new report published by the Tax Foundation. The Foundation measured the fiscal year 2020 rainy day funds of each state across the country and compared those amounts to each state’s annual expenditures. States like Wyoming, Alaska, North Dakota and New Mexico had more than 25 percent of their annual expenditures, or at least 3 month’s worth of spending.
The national median was about 8 percent of annual expenditures – meaning most states had cash to cover about one month’s worth of operations.
Kansas and Illinois had zero percent of expenditures set aside. Technically, Illinois had about $4 million in its rainy day fund, or 0.01%.
Of course, the discussion of a rainy day fund is meaningless in Illinois. The state has nearly $8 billion in unpaid bills, billions in budget budget deficits and hundreds of billions more in pension shortfalls.
Illinois politicians may want to blame everybody else for the state’s problems, but the reality is they’ve left the state, and its residents, financially unprepared for any kind of emergency.
Read more about the impact of the Coronavirus on Illinois:
- The COVID-19 crisis: It’s time to move past the public health vs. economy argument
- Illinois’ near-insolvent unemployment trust fund can’t handle surge in unemployment claims, will need to tap federal loans
- Illinois Finally Starts Collecting Key Coronavirus Hospitalization Info.
- Coronavirus impact may push Illinois state pension debt to over $300 billion
- Don’t Let States Rob COVID-19 Funds to Bail Out Pensions
- Bad Public Pension Bailout Ideas Now Surfacing
- State of Illinois provides first look at possible revenue impact from downturn
- Will Recession Revive Discussion of Municipal Bankruptcy and Bankruptcy-for-States?