A new report out of the Mercatus Center at George Mason University, ranks New York in the bottom five states for fiscal outlook.
New York came in at 46th on the list which analyzes short- and long-term debt, as well as other key obligations such as unfunded pensions and health care.
With barely sufficient cash to cover short-term spending, New York’s fiscal position showed several areas of stress. While the state was able to match revenues and expenses, a small deficit was reported during the fiscal year. On a long-run basis, liabilities accounted for 63 percent of the state’s total assets. Unfunded pension liabilities amounted to $251 billion, with unfunded OPEB liabilities adding a further $67 billion. Total primary government debt added more than $57 billion, representing 5.4 percent of state personal income.
Meanwhile, USA Today also explains that “New York … relies heavily on capital gains tax revenue and has seen large fluctuations in that income source due to federal legislative changes in recent years.”
In regards to the bottom five states, the study summarizes:
Illinois, New Jersey, Massachusetts, Connecticut, and New York rank in the bottom five states, largely owing to low amounts of cash on hand and large debt obligations.High deficits and debt obligations in the forms of unfunded pensions and health care benefits continue to drive each state into fiscal peril. Each holds tens, if not hundreds, of billions of dollars in unfunded liabilities—constituting a significant risk to taxpayers in both the short and the long term.
Notice any other similarities amongst the bottom five states other than their bleak fiscal health?