Kentucky Response to COVID-19: Inadequate Rainy Day Fund Heightens Need for Federal Aid and More State Revenue
March 13, 2020
States set aside rainy day funds to draw on when economic downturns or crises hit. Governor Beshear may well need to tap the state’s rainy day fund to deal with the costs of directly addressing the COVID-19 pandemic, which he has the authority to do after declaring a State of Emergency.
But Kentucky has among the most depleted rainy day funds in the country, with only enough money for the equivalent of 4 days of state budget needs (and 10 days by the summer, after additional dollars are scheduled to read more