Pixabay
Pixabay
Minnesota could pay 10.4% of its general fund expenses each year by using its rainy-day reserves, according to The Center Square.
A report published by The Tax Foundation reveals that Minnesota is the 16th healthiest state when compared to the 49 other states.
The Tax Foundation reports that the states that rely on revenue from oil, gas and other natural resources had the most healthy revenue stabilization reserves. These states include Wyoming, Alaska, North Dakota and New Mexico. These states usually have to put away a larger amount of revenues during the flourishing years to fund state operations when oil and gas prices drop.
When they put more away, they have enough funds to get by on during the slower, less prosperous years.
The rainy-day funds permit states to prepare for impending downturns in the economy. Especially now, amid the COVID-19 crisis. the analysis reveals that the rainy-day funds are now a mandatory element in the states’ economic system.
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