Rainy Day Funds: If Not Now, When?

A cursory glance at state balances suggests that a reasonable level of funding remains in them, even as states have made deep spending cuts and raised taxes. Have states been loath to use their rainy day funds? If so, why? And what might be done to either increase the likelihood of the funds being spent, or—failing that—to minimize the damage that comes from state budget cuts and tax increases in the midst of a recession?