From NewsTribune.com:

While budget deficits threaten to cripple government services across the country, a handful of states with billions of dollars socked away in “rainy day” funds for troubled financial times are discovering they can’t use that money to offset their cuts.

Amid the worst financial crisis facing states in decades, stringent rules governing the use of reserve funds have tied the hands of lawmakers in nearly a dozen states even as they consider raising taxes, slashing health and social services and shuttering education programs.

About three-fourths of states have used rainy day funds in the past three years to alleviate budget cuts, but some have had difficulty accessing the money or have shied away from doing so. They would have to repay it quickly or were worried it would hurt their bond ratings.

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