We made it through the Great Recession. We barely made it through the Pandemic. No one made it through Cats. And now, experts are saying we don’t have enough money in the state’s Rainy Day Fund to make it through another recession.
Here’s Five Fast Facts About Wisconsin’s Rainy Day Fund
- ☔☂Umbrella - A Rainy Day Fund allows states to set aside extra revenue to use during times when the state’s money runs dry.
- ⛈🌧Rain on Me - Wisconsin’s rainy day fund currently sits at 8.4% — one of the highest in the country! However, a recent report said it needs to be twice that for Wisconsin’s state spending plan to survive the next recession.
- ⛔🚫 Blame it on the Rain - Lawmakers have said none of the current budget surplus is going into the rainy day fund. The reason: a state law requires them to deposit only half of any surplus until the fund hits 5%. We’re already above that number, so they will find another way to distribute the cash instead of just stockpiling it in the government’s accounts.
- 🥩🍖November Rain - During the great recession states cut funds for education, infrastructure, and state aid among other things. Some have barely made up those cuts, so there’s not much meat left on the bone.
- ❗🙅Gimme Shelter - Deutsche Bank is now the first bank to identify warning signs that the recession is on its way.
🔥Bottom line: Add it up and it’s clear Wisconsin isn’t exactly not ready for the coming storm. The way our state spends and saves money will likely have to change in order to adjust for any coming recession or things could get very bad.
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