Posted on 01/17/2014 7:08:04 AM PST by rightwingintelligentsia
New research from Sarah Arnett examines states’ abilities to meet their financial obligations in the face of state budget challenges that have far outlasted the Great Recession. Fiscal simulations by the Government Accountability Office suggest that despite recent gains in tax revenues and pension assets, the long-term outlook for states’ fiscal condition is negative (GAO 2013). These simulations predict that states will have yearly difficulties balancing revenues and expenditures due, in part, to rising health care costs and the cost of funding state and local pensions.
Arnett uses four different indices to analyze state solvency using each state’s fiscal year 2012 Comprehensive Annual Financial Report data. She then weights these four indices to create the State Fiscal Condition Index below.
Cash Solvency
A state’s cash solvency takes into account the cash the state can easily access to pay its bills in the near term, reflecting the state government’s liquidity. The map below indicates that most states have enough cash on hand to meet their short-term obligations.
(Excerpt) Read more at mercatus.org ...
Cheap labor ain’t so cheap, is it?
I’m not sure that I’d lump KY and LA with the Red states. Although they vote GOP in Presidential elections, further down the ticket there’s a pretty solid purple pattern. KY is run by Dems at the state level right now, as was the previous LA state government.
How long have these states been Rat or Repub? Maybe they’re Repub now but after decades of Rat misbehavior ruined them financially.
Have you seen our train?
Yes, illegals (and democrats/those on the dole) are really dragging New Mexico down.
Way to go Illinois. Headed for the toilet faster than a plateful of bad tamales.
When I bugged out of Pennsylvania 20 years back, I noticed pretty quick how much state taxes back East had been robbing my family for years. No taxes in Alaska. Now if something could be done about the 2 weeks of minus 60 we usually get every January.
Anyway you look at it though, Alaska is better than back East.
Media’s using this one to take out Christie. All the headlines are about “Christie’s New Jersey” coming up 50th.
As for poverty and the schools in AL, there seems to be a correlation with other factors, but it would be impolite to mention it.
as gloomy as this seems, “what difference..does it make”?
The states have defacto money printing presses via their ability to continue to borrow. And who’s going to doubt that the federal government would act swiftly to bail out any state that goes over some fiscal cliff.
At this scale, it’s not like the “real money” that we have to deal with.
That is really good!!!
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That means that they would view the ideal Presidential candidate to be Sean Parnell (or his predecessor—heh, heh!). Alaska is #1!
By my count, 9 of the worst 11 are liberal states, one is conservative, and one (Arizona) is mixed. States with high levels of illegal immigrants tend to be among the worst, including Texas, the only conservative state in the bottom eleven.
10 of the 11 states with the worst long-term solvency projections are liberal - only Kentucky breaks up the monopoly.
South Dakota’s high ratings may have a lot to do with the state having no state personal or corporate income tax and a Constitution that requires a balanced budget. Our Legislature meets for no more than 40 days...30 days in even years so they have less opportunity to spend money foolishly.
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