What are state rainy day funds, and how do they work? Q.What are state rainy day funds, and how do they work? A.Budget stabilization funds allow states to set aside surplus revenue for times of unexpected revenue shortfall or budget deficit. Every state but Arkansas, Kansas, and Montana has some type of rainy day fund. Read more about What are state rainy day funds, and how do they work?
What types of federal grants are made to state and local governments and how do they work? Q.What types of federal grants are made to state and local governments and how do they work? A.The federal government distributes around $530 billion, about 14 percent of its budget, each year to states and localities, providing about a quarter of these governments’ general revenues. The bulk of the funds are dedicated to health care (figure 1). Read more about What types of federal grants are made to state and local governments and how do they work?
