Illinois Ranked State in Worst Financial Condition

Written by Michael Hausam

The Mercatus Center at George Mason University just completed a study of the financial health of each state in the country. Considering debt, pensions, and health-care costs, they’ve ranked them in order of fiscal solvency.

Here is a map showing the overall ranking of the states [click on the maps to zoom]:

Overall-Solvency

The rankings are based on relative economic stability based upon five separate categories:
  1. Cash Solvency – Can the state cover short term bills?

  2. Budget Solvency – Is there a budget shortfall or can revenues cover expenses?

  3. Long-run Solvency – Can it meet future commitments?

    FR-LONG-RUN-map-41
  4. Service-level Solvency – Could it accommodate an increased demand for services?
    FR-SERVICE-LEVEL-map-5
  5. Trust Fund Solvency – What are the debt levels, unfunded pension liabilities, and health care liabilities?

    FR-TRUST-FUND-map-6

A quick observation about these states: Firstly, the top five fiscally healthy states, Alaska, North Dakota, South Dakota, Nebraska, and Florida, are controlled by Republicans in their state governments.

The bottom five – Illinois, New Jersey, Massachusetts, Connecticut, and New York – are blue states with budget problems.

Norcross-State-Fiscal-Condition-table

 You’ll have to decide for yourself if that’s just a complete coincidence.

This article was originally posted at the IJReview.com.