Colorado is the only state without a rainy day fund. Now the coronavirus means it will pay the price. | VailDaily.com
YOUR AD HERE »

Colorado is the only state without a rainy day fund. Now the coronavirus means it will pay the price.

John Frank, Colorado Sun

In early February, the governor’s office and state treasurer issued a warning to lawmakers: Colorado is the only state in the nation without a rainy day fund to buffer against a recession. Now is the time the state should save for a downturn, they said, before it’s too late.

“We all know that the economy, at some point, may turn,” Treasurer Dave Young said at the time. “It usually does. We don’t know when.”

The Feb. 6 presentation to the legislative budget committee made no mention of the coronavirus. But only weeks later, the spread of COVID-19 became a pandemic that crippled the economy and made the premonition about Colorado’s weak fiscal safety net all too real.

“No one could have imagined at that point in February that we were going to be in this kind of economic and health crisis today,” Young said in a recent interview. “It didn’t give us enough time to actually enact the plan and start to carry it out.”

Support Local Journalism


Even if a pandemic is difficult to imagine, the state’s lack of preparation for an economic slump is entirely predictable. The warnings about the state’s limited savings date back at least a decade to the end of the Great Recession, according to a series of interviews and review of legislative documents. 

Read more via The Colorado Sun.

The Colorado Sun is a reader-supported news organization dedicated to covering the people, places and policies that matter in Colorado. Read more, sign up for free newsletters and subscribe at coloradosun.com.


Support Local Journalism

Readers around Vail, Beaver Creek and Eagle Valley make the Vail Daily’s work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Each donation will be used exclusively for the development and creation of increased news coverage.

For tax deductible donations, click here.
 


Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.

User Legend: iconModerator iconTrusted User