Posted by: Democratic Thinker | July 8, 2015

Commentary: Ranking the States by Fiscal Condition

Commentary

 
 
Eileen Norcross, writing for the Mercatus Center at George Mason University, rates the fiscal solvency of the various states.

 


How financially healthy is your state? Most states are nearly back to normal since the Great Reces­sion, although there are troubling signs that many states are still ignoring the risks on their books, mainly in underfunded pensions and health care benefits.


 

Mercatus Center.



 

Ranking The States By Fiscal Condition.

Eileen Norcross | Jul 07, 2015

In new research for the Mercatus Center at George Mason University, Senior Research Fellow Eileen Norcross ranks each US state’s financial health based on short- and long-term debt and other key fiscal obligations, including unfunded pensions and health care benefits. The study, which builds on previous Mercatus research about state fiscal conditions, provides information from the states’ audited financial reports in an easily accessible format, presenting an accurate snapshot of each state’s fiscal health.

With new spending commitments for Medicaid and growing long-term obligations for pensions and health care benefits, states must be ever vigilant to consider both the short- and long-term consequences of policy decisions. Understanding how each state is performing in regard to a vari­ety of fiscal indicators can help state policymakers as they make these decisions.

A closer analysis of the individual metrics behind the ranking shows how each state’s fiscal condi­tion should be assessed. Notably, nearly all states have unfunded pension liabilities that are large relative to state personal income, indicating that all states need to take a closer look at their unfunded pensions, which represent a significant portion of each state’s economy. Another finan­cial crisis could mean serious trouble for many states that are otherwise fiscally stable.

Overall Fiscal Solvency.

. . .

(Read the complete article at the Mercatus Center)

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