Filed under: Capitalism, Domestic Policy, Economics, Economy, Energy, Health Care, Politics | Tags: Changing Energy Picture, Mercatus Center Study, Minding the Budget
The Mercatus Center at George Mason University has published a new study on the fiscal condition of the states. They rank each state on their fiscal health based on short-and long-term debt and other key fiscal obligations including unfunded pension liability and healthcare benefits. Growing pension obligations and increasing healthcare costs are straining budget planning.
Many states are facing big jumps in insurance premiums. Humana is seeking a 50% ObamaCare price hike in Michigan, deductibles are going up. Silver plan deductibles of $6,000 and $7,000 are not uncommon.
Ranking the 50 states is based on five separate categories.
- 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 it’s 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 pension and healthcare liabilities?
The top five states, Alaska, Wyoming, North Dakota and South Dakota rank in the top five. Pensions and healthcare will be long term challenges, but these states are considered fiscally healthy. The top five have changed since last year. Wyoming moved up and edged Florida out, but Nebraska moved up to second place.
Kentucky, Illinois, New Jersey, Massachusetts and Connecticut are in the bottom five largely owing to low amounts of cash and big debt obligations. That little bright red spot at the bottom is Puerto Rico.
Filed under: Capitalism, Conservatism, Economy, Freedom, Law, Politics, The Constitution | Tags: Minding the Budget, Paul Ryan at Heritage, The American Idea
Paul Ryan’s speech at Heritage has been much celebrated. It seems impossible that the American idea, which so many of us take for granted, would be under threat as never before. The old Chinese proverb says “May you live in interesting times.” We certainly do.
We are extremely lucky to have Paul Ryan as the Chairman of the House Budget Committee. He’s not only very good at math, good at explaining, but he understands how government works, and is willing to stand up for what he believes in. Many were hoping he would run for president, but he knows that at this moment in time he is most valuable where he can make a difference on our behalf. We should all drop him a note to let him know how much we appreciate his efforts. He gets plenty of venom from the other side.