Saturday, May 25, 2019

U.S. News ranks Tennessee as the top state for fiscal stability.

by Rod Williams - U. S. News and World reports that Tennessee is the number one state in the nation for fiscal responsibility. States were ranked for both short-term and long-term fiscal responsibility and then given an overall rating. Tennessee was ranked tops for long-term fiscal responsibility and seventh for short-term fiscal stability and given an overall rating of number one. Ranking below Tennessee for overall fiscal stability was Florida at number two, South Dakota at number three, North Carolina number four and Utah number five.

The worst states in overall ranking begins with Illinois, followed by New Jersey, Alaska, New Mexico, and Connecticut.  California was the ninth worst.

The ranking of long-term fiscal stability included a state's ability to cover long-term pension obligations and issue bonds at a reasonable cost which is largely dependent on its credit rating. Moody's Investors Service was used for the credit rating component. The pension score was based on research by The Mercatus Center at George Mason University. Tennessee got a perfect score of "1" on both the credit rating and the pension liability factors.

The short-term score looked at how well a state meets its immediate financial obligations and if it had sufficient access to capital to cover short-term liabilities.

It matters who governs.

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