Journal Article

Rainy Day Funds Have Grown as State Tax Revenue Strengthens

Abstract: Many state governments have seen solid growth in their tax revenues over the past couple of years. We show that recent changes in the federal tax code contributed to the uptick in state revenues. In addition, we show that states have used the recent revenue windfall to build up rainy day funds at a much faster pace than they did before the Great Recession.

Keywords: State Revenue; U.S. Federal Tax Code; State Government; Revenue; Taxation;

JEL Classification: E62; H20;

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2019-10-16

Issue: October 16, 2019

Pages: 4