How can these contingency funds stabilize a state’s economy?

A number of states have established stabilization funds that are paid into in years when the state’s economy is strong and drawn from when the state’s economy is in recession. This means that state taxes are greater than spending in good economic years and less than spending in bad years. How can these contingency funds stabilize a state’s economy?

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"