8/27: States tap rainy-day funds

Stateline: States tap rainy-day funds to shore up budgets

Alabama's rainy-day fund, which is designated for education, has been emptied to shore up the budget for the current fiscal year. At least 11 states have accessed their emergency funds -- including Georgia, Louisiana and Mississippi, in order to provide services to residents.

Despite the risks to future budget cycles, budget experts support the use of rainy day funds during hard times.

“The rainy day funds exist to help states buy some time while they consider where they might need to cut their budget or where they might want to raise taxes, so I think it makes sense to withdraw money … in the current situation,” said Liz McNichol, a senior fellow at the Center on Budget and Policy Priorities (CBPP), a group that tracks government spending on low-income families.

In Alabama, for example, the reserve money helped shield schools from scarring funding reductions.

Also in the South:

ALABAMA: State Republicans want Democratic state Rep. Terry Spicer to resign

ARKANSAS: U.S. Trade Symposium to be held across state during September

FLORIDA: State loses 42,300 manufacturing jobs in the past 12 months

GEORGIA: Solar power becoming more attractive option in Georgia

KENTUCKY: 'Almighty God' reference in state homeland security law struck down

LOUISIANA: The Black infant mortality rate and the role racism plays

MISSISSIPPI: Unemployment rate now above 10%

NORTH CAROLINA: Pamlico Sound noted as best spot for utility-scale wind energy farm

SOUTH CAROLINA: Gov. Sanford resists Lt. Gov. Bauer's call to resign

TENNESSEE: Sen. Bob Corker speaks out against AARP

VIRGINIA: GOP leaders put pressure on powerful GOP legislator to resign before party is hurt

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