3 Steps to Strengthen Your State's Rainy Day Fund

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3 Steps to Strengthen Your State's Rainy Day Fund

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Is your state ready for a rainy day— such as the next natural disaster or economic downturn? If not, policymakers may face tough choices, like cutting funding for schools and road construction, or raising taxes.

To help states prepare, The Pew Charitable Trusts has identified three steps to strengthen state reserves. The key: planning for tax revenue volatility when designing a rainy day savings fund. Twelve state governments already do it—watch to find out how yours can too.

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