By law the state must set aside surplus moneys into a "rainy day" fund to cover unanticipated economic situations,such as a downturn,or emergency spending.

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This statement is true. Many states have a requirement to maintain a reserve fund for emergencies and economic downturns. This fund is commonly referred to as a "rainy day" fund. The purpose of the fund is to ensure that the state has adequate resources to weather economic storms and pay for unexpected expenses without having to resort to drastic measures such as cutting services or raising taxes.

By Law the State Must Set Aside Surplus Moneys into a "Rainy