Virginians persist in the belief that the commonwealth is an exceptionally well managed state with lower-than-average taxes, better-than-average services and rock-solid finances, as exemplified by its AAA bond rating. But there’s more to a state’s fiscal health than its ability to repay bonds. Sarah Arnett with the Mercatus Center rates the fiscal condition of the 50 states and finds Virginia right smack in the middle of the pack, in 25th place.
The overall ranking is a composite of four specific indices based on 2012 Comprehensive Annual Financial Report data: cash solvency (states with more cash on hand score better), budget solvency (ratio of revenue to expenses), long-run solvency (the ability to meet long-term obligations such as pension benefits and infrastructure maintenance), and service-level solvency (reflecting the ability to provide citizens with an adequate level of services).
Read the details in “State Fiscal Condition: Ranking the 50 States.”
Update: Tim Wise provides more in-depth analysis of the numbers over on the Growls blog.There are currently no comments highlighted.