August 08, 2019
PUBLIC FINANCE > Budget > FY 2019

The $3 Billion Stabilization Fund

The Commonwealth Stabilization Fund, the state’s “rainy day” fund, is a critical component of the Commonwealth’s financial structure. For example, amid the Great Recession in fiscal 2009, budgeted tax revenue plummeted by nearly $2.7 billion compared to fiscal 2008. The Stabilization Fund was a key element of the response to the crisis, with nearly $1.3 billion transferred from this reserve to support ongoing programs and projects that year. While budget cuts and other hard decisions were also required, these measures would have been more difficult without the Stabilization Fund.