State of the States
Spring 2018

State of the States Spring 2018


Conning maintains its declining outlook on U.S. state credit quality overall, and tax reform may worsen conditions in some cases, but there are bright spots. Our State of the States report May 2018 is the latest in our semi-annual analysis and ranking of all 50 states by credit quality.

The nation’s economic recovery is not shared equally among the states. While the Northeast region struggles, conditions are far better in the Mountain, West and Southeast regions. Among our findings we note:
  • State revenue growth is trending below growth in U.S. GDP, and most state reserves are shrinking due to the mismatch between revenues and expenditures
  • Growing legacy costs such as pensions and Medicaid are eating into funding for other public needs, forcing local governments to make tough political choices
  • States with higher tax rates will be further challenged by a new cap in state and local deductions, potentially driving more residents to states with lower tax rates


Please fill out the form to download the Viewpoint and learn the answers to these questions and more about how insurance companies can benefit from more diversified portfolios.

Download State
of the States

Please fill out the form to download the State of the States May 2018 report and learn more about our views of state credit quality and the issues municipalities face in credit markets.