When it comes to financial health, Hawaii ranks 45th.
At least we are ahead of Kentucky, Illinois, New Jersey, Massachusetts and Connecticut, which rank as the bottom five states, “largely owing to the low amounts of cash they have on hand and their large debt obligations,” according to a new report.
The survey, from Mercatus Center at George Mason University, ranks each state’s financial health based on short- and long-term debt “and other key fiscal obligations, such as unfunded pensions and healthcare benefits.”
Mercatus Center concludes, “Updating the fiscal condition of the states with another year of data shows that most states’ fiscal performance remains relatively constant, but the signs of fiscal stress persist. Underfunded pensions and healthcare benefits continue to put pressure on state finances. Even states that appear to be fiscally robust—perhaps owing to large amounts of cash on hand or revenue streams from natural resources — must take stock of their long-term fiscal health before making future public policy decisions.”
Alaska, Nebraska, Wyoming, North Dakota and South Dakota rank in the top five states for fiscal solvency.