State of the States -
2026 Report
State of the States
State fiscal health remains fundamentally sound heading into 2026, but the factors driving state discal strength and relative performance are shifting. In Conning’s June 2026 State of the States report, we maintain a stable outlook for U.S. states, supported by strong balance sheets and generally prudent fiscal management, while highlighting a more challenging operating environment as post‑pandemic tailwinds fade.
This year’s rankings show greater dispersion and more movement than in prior years, with 23 states moving 10+ positions year‑over‑year. The analysis tracks the indicators muni investors rely on, including reserves and fixed costs, leverage, tax revenue trends, income and employment growth, migration, and housing dynamics, while placing greater emphasis on structural differentiators such as cost of living pressures and climate‑related catastrophe exposure.
Download the report to see the full rankings, understand what’s driving year‑over‑year changes, and identify emerging fiscal and credit risks. For deeper insight, explore the interactive analysis to compare state‑by‑state fiscal and economic metrics and monitor trends over time.
This year’s rankings show greater dispersion and more movement than in prior years, with 23 states moving 10+ positions year‑over‑year. The analysis tracks the indicators muni investors rely on, including reserves and fixed costs, leverage, tax revenue trends, income and employment growth, migration, and housing dynamics, while placing greater emphasis on structural differentiators such as cost of living pressures and climate‑related catastrophe exposure.
Download the report to see the full rankings, understand what’s driving year‑over‑year changes, and identify emerging fiscal and credit risks. For deeper insight, explore the interactive analysis to compare state‑by‑state fiscal and economic metrics and monitor trends over time.
2026 Report
© Conning Holdings Limited 2026. All Rights Reserved.Securities are offered through Conning Investment Products, Inc., One Financial Plaza, Hartford, CT 06103 an affiliated broker-dealer. Member of FINRA / SIPC.
