November 2017 | State Budget Note 2017-01

In a Nutshell

1) Michigan’s rainy day fund is being refilled after sitting empty for many years at the end of the last recession.

2) Current deposits are insufficient for anything beyond a very mild economic downturn. Michigan should continue efforts to build up reserves in that fund.

3) Michigan’s rainy day fund is designed very well to conserve money that has been saved for a recession, but the savings cap might limit the effectiveness of the fund. Once savings reach the fund cap, lawmakers should consider raising the amount that can be saved in the rainy day fund.

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