A new study published by George Mason University ranked Connecticut 50th among all states in overall fiscal health, rating the Nutmeg State “poor” in each of its categories: cash, budget, long-run, service level, and trust fund solvencies.
The report, written by Eileen Norcross, a senior research fellow at the Mercatus Center at GMU, states that, with between only 0.46 and 1.19 times the cash needed to cover short-term liabilities, Connecticut’s revenues matched only 94 percent of expenses, producing a deficit of $505 per capita. With a negative net asset ratio of −0.88 and liabilities exceeding assets by 34 percent, per capita debt is $9,077; total debt is $20.88 billion.
The study went on to say that unfunded pensions are $83.31 billion on a guaranteed-to-be-paid basis, with other post-employment benefits at $19.53 billion. Total liabilities are equal to 53 percent of total state personal income.
The state finished one spot higher than Puerto Rico. Alaska topped the rankings, with New York 42nd and Massachusetts 49th.