The Mercatus Center at George Mason University is famous for it’s studies on state government and state financial health. Their annual study showed that the State of N.C., under it’s new Republican leadership, is the only state in the US to not only improve but to significantly shift in their long-run overall sol­vency ranking.

N.C. has moved up over 7 spots from 28th in the nation to 21st. This reverses a downward slide in the state under prior Democratic administrations. This represents a dramatic success story for the Republican leadership in recent years inspite of some negative press recently on LGBT issues.

The Mercatus Center study ranks the 50 states and Puerto Rico based on their fiscal solvency in 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 its 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 pen-sion and healthcare liabilities?

http://mercatus.org/statefiscalrankings

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