New from : states tapping rainy day funds during a recession or crisis like #COVID19 (and replenishing them when the crisis ends) isn't a credit-negative. Instead it may reduce the chance of a downgrade
States sometimes worry that tapping their savings could hurt their credit rating, even during a recession. That doesn't have to be the case.
Hot tip from : Blowing through rainy day funds early in a recession could negatively impact a state’s credit rating.
Yep, does have a lot of research on state rainy day funds! #NCSLbc Best practices on design and use: How it affects credit ratings: A 50-state tracker of balances:
(You know, I wasn't originally sold on this pig pic but now I'm kinda into it.) The latest from : How withdrawing from reserves could affect state credit ratings