Connecticut residents and business people probably don’t need any more evidence as to the well discussed fiscal issues for the state. However, Connecticut landing just one notch below the bottom of the barrel in a new report that grades the fiscal health of all states. The Nutmeg State has recently ranked 49th for fiscal health by The Mercatus Center at George Mason University.
The ranking is based on its solvency in five separate categories.
Connecticut has between 0.42 and 1.05 times the cash needed to cover short-term obligations, well below the US average.
Revenues only cover 92 percent of expenses, with a worsening net position of –$693 per capita. In the long run, Connecticut’s negative net asset ratio of 1.71 points to the use of debt and large unfunded obligations.
Long-term liabilities are higher than the national average, at 230 percent of total assets, or $17,418 per capita.
Total unfunded pension liabilities that are guaranteed to be paid are $121.65 billion, or 48 percent of state personal income.
OPEB [other post-employment benefits, example healthcare costs] are $21.89 billion, or 9 percent of state personal income.
Only Illinois was ranked below Connecticut, while neighboring Massachusetts was listed at 47th the Commonwealth’s Governor’s re-election advertising cites a one billion budget surplus.
The top five most fiscally solvent states reported were Nebraska, South Dakota, Tennessee, Florida and Oklahoma. The bottom five are Kentucky, Massachusetts, New Jersey, Connecticut and Illinois. The fiver year tracking shows that Connecticut was among states that consistently performed poorly.