Yep. CT (a capital gains heavy state) built guardrails into

...its budget process to reflect the reality you describe. As I understand it, the legislature can only spend a percentage of capital gains revenue tied to historical averages. Any amounts above that are required to be placed into a rainy day fund and, once that has reached its statutory maximum, used to pay down debt.

My understanding is that the combination of the guardrails plus a booming stock market have resulted in record surpluses for CT that are being used to reduce debt rather than to fund additional spending that will become unsustainable once the stock market book subsides.