This handy chart by Investor’s Business Daily reveals the top 10 and bottom 10 according to the report:
This map by the Mercatus Center reveals the rankings of all 50 states and Puerto Rico:
The states are ranked according to five separate metrics:
- Cash solvency. Does a state have enough cash on hand to cover its short-term bills?
- Budget solvency. Can a state cover its fiscal year spending with current revenues, or does it have a budget shortfall?
- Long-run solvency. Can a state meet its long-term spending commitments? Will there be enough money to cushion it from economic shocks or other long-term fiscal risks?
- Service-level solvency. How much “fiscal slack” does a state have to increase spending if citizens demand more services?
- Trust fund solvency. How much debt does a state have? How large are its unfunded pen-sion and healthcare liabilities?
According to the report, the worst states are plagued by two common characteristics: massive debt, and unfunded pension and healthcare liabilities. Of course, it’s this type of accounting that Obama has brought to the White House.
As liberal-led states flirt with bankruptcy, they also continue to wage war on free speech and moral absolutes. As recent headlines reveal, California wants to prosecute those who openly deny liberal dogma on climate change, and Massachusetts wants to legalize gender perversion.
Remember, as I’ve noted before, the states are “laboratories for democracy.” As we’ve seen (and continue to see) with the homosexual agenda (same-sex “marriage,” et al), what liberals are attempting at the state level they will bring to the federal level. That’s something worth remembering come November.
Copyright 2016, Trevor Grant Thomas
At the Intersection of Politics, Science, Faith, and Reason.
Trevor and his wife Michelle are the authors of: Debt Free Living in a Debt Filled World