U.S. economic growth is driving state tax revenue and states are demonstrating improved spending discipline, factors leading Conning to upgrade its outlook for U.S. state credit quality to stable. Our State of the States report November 2018 is the latest in our semi-annual analysis and ranking of all 50 states by credit quality.
While the nation’s metrics in aggregate show improved credit conditions, the gains are not equally shared. While the Mountain, Southeast and West regions are faring well, the Northeast region and pockets of the Midwest and South continue to struggle. Among our findings:
State revenue growth is trending above both state expenditure growth and national GDP growth in current dollars
Many states have strengthened their “rainy day” funds, notably California and Connecticut
Several states have not improved their fund reserves, debt levels and operating costs, a concern given that we may be late in the credit cycle. These states may be more vulnerable to an economic downturn and there are fewer resources available to help now than during the financial crisis of 2008
Please fill out the form to download the State of the States November 2018 report and learn more about our views of state credit quality and the issues municipalities face in credit markets.
Download The State of the States
Please fill out the form to download the State of the States October 2018 report and learn more about our views of state credit quality and the issues municipalities face in credit markets.