South Carolina ranks 17th out of the 50 states in fiscal health, according to a new study by the Mercatus Center at George Mason University. That’s considered a “moderate” rating, the study shows.
The study by researcher Eileen Norcross, which is based on fiscal year 2013 state financial reports, used 14 metrics to determine whether states could meet their short- and long-term obligations. Here’s how South Carolina ranked on five indicators, with 1 being the best:
- Cash solvency: 18th. This indicator measures the state’s cash position relative to current or short-term liabilities.
- Budget solvency: 14th. This is a measure of whether a state can meet its fiscal year obligations.
- Long-run solvency: 11th. This metric illustrates the state’s long-term liabilities relative to total assets.
- Service-level solvency: 25th. This measure gives an idea of how much room a state government has room to raise taxes or increase spending.
- Trust fund solvency: 33rd. This is another measure of the state’s indebtedness.
The highest performers overall were Alaska, North Dakota, South Dakota, Nebraska and Florida. The lowest performers were New York, Connecticut, Massachusetts, New Jersey and Illinois.
We Can Do Better, South Carolina!