California Budget Reserve Fund

The California Budget Reserve Fund, often called the "rainy day" fund, is a savings account set aside by the state government to help manage financial stability during economic downturns or unexpected expenses. Its purpose is to provide a cushion to maintain essential services and avoid spending cuts when revenues fall short. Contributions are made when the economy is strong, and withdrawals are used during tough times. This fund helps California adapt to economic fluctuations, ensuring fiscal responsibility and stability without compromising key programs or increasing debt.