Question

The Economic Stabilization Fund, created by the state legislature in 1988 as a sort of state savings account, is often also referred to as what

Answer 1

The Economic Stabilization Fund is also known as the rainy day fund.

Step-by-step explanation:

This is a fund that the state of Texas (and many other U.S. states) can access in times of economic distress, in order to fund state spending.

The reason for this is that Texas, by it's constitution, must run a balanced budget, meaning that it cannot take on debt in case of deficit. This is why, in times when revenues do not match expenditures, the rainy day fund can be used as an option of last resort.