Ranking the States by Fiscal Condition, 2016 Edition

168 Pages Posted: 6 Sep 2018

See all articles by Eileen Norcross

Eileen Norcross

George Mason University - Mercatus Center

Olivia Gonzalez

George Mason University, Department of Economics, Students; Mercatus Center at George Mason University

Date Written: June 2016

Abstract

Based on the fiscal year 2014 comprehensive annual financial reports of the 50 states and Puerto Rico, this study ranks states’ fiscal solvency using 14 metrics that assess the extent to which the states can meet short-term bills and longer-term obligations. State finances are analyzed according to five dimensions of solvency: cash, budget, long-run, service-level, and trust fund solvency. These five dimensions are combined to produce an overall ranking of state fiscal solvency. Alaska, Nebraska, Wyoming, North Dakota, and South Dakota rank as the top five most fiscally solvent states. Kentucky, Illinois, New Jersey, Massachusetts, and Connecticut rank as the bottom five states, with Puerto Rico taking 51st place.

Keywords: state fiscal condition, fiscal solvency, financial ratios, state financial condition, public finance, state budget, state borrowing, state tax, public pensions, deficit, state expenditure, debt, surplus, government bonds, revenue

JEL Classification: H2, H3, H7, M410, M420

Suggested Citation

Norcross, Eileen and Gonzalez, Olivia, Ranking the States by Fiscal Condition, 2016 Edition (June 2016). Mercatus Research. Available at SSRN: https://ssrn.com/abstract=3245312 or http://dx.doi.org/10.2139/ssrn.3245312

Eileen Norcross (Contact Author)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States
703-993-4930 (Phone)

HOME PAGE: http://https://www.mercatus.org/eileen-norcross

Olivia Gonzalez

George Mason University, Department of Economics, Students ( email )

Fairfax, VA
United States

Mercatus Center at George Mason University

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

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