Ranking the States by Fiscal Condition 2016 Edition

These fiscal pressures point to areas for policymakers to direct their efforts. They also highlight areas where improved financial reporting could give the public a clearer picture of states’ fiscal health.

Ranking the States by Fiscal Condition 2016 Edition

Ed. Note: By looking at the states’ basic financial statistics on revenues, expenditures, cash, assets, lia­bilities, and debt, the Mercatus Center ranks states according to how easily they will be able to cover short-term and long-term bills, including pension obligations.

There should be no surprise that cash solvency, budget solvency, long-run solvency, service-level solvency, and trust fund solvency (parameters that protect hard-working middle class Americans) are by far strongest in states with lower taxes and limited government.

Republished from Mercatus.org, by Eileen Norcross and Olivia Gonzalez, June 1, 2016. Image credit: Mercatus

A new study for the Mercatus Center at George Mason University ranks each US state’s financial health based on short- and long-term debt and other key fiscal obligations, such as unfunded pen­sions and healthcare benefits. This 2016 edition updates the version the Mercatus Center pub­lished in 2015 [3]. Using the approach pioneered in 2015, the 2016 edition presents information from each state’s audited financial report in an easily accessible format, this time including Puerto Rico to provide a benchmark of poor fiscal performance.

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