Ranking the states by their fiscal health

The massive federal debt, and the annual deficits that add to it, are frequently in the news. Far less covered are the overall financial challenges facing the fifty states. A substantial portion of fiscal problems are attributed to underfunded pensions and medical expenses.

While each individual state possesses individual strengths and weaknesses, some generalizations can be made. Overall, citizens of high tax states are leaving to take up residence in lower taxed states. IRS data reveals that:

Texas has the largest positive net migration1 of 152,477 people (number of exemptions) on 72,032 individual income tax returns, followed by Florida (73,789 people on 27,991 returns) and South Carolina (28,905 people on 13,475 returns).
New York had the largest negative net migration of 113,861 people on 51,825 returns.
Regionally, Texas accounted for more than half of the net migration into the South, while residents leaving New York made up more than half of the net loss from the Northeast.
Returns filed by primary taxpayers ages 34 or younger were at least twice as likely as those in any other age category to have migrated to another State between Calendar Years 2012 and 2013.
The single largest net migration was from New York to Florida (17,355 people on 7,861 returns).

Sending a well drafted e-mail could be an tadalafil canadian pharmacy continue reading this economical baby shower invitation. There are two methods of brachytherapy – permanent seed implantation and high dose shop for viagra rate (HDR) temporary brachytherapy. In respect of quality and effectiveness of on sale here levitra uk, we are now getting the medicine with the lowest cost. Male sexual dysfunction is mostly a circumstance in sildenafil 50mg browse for more info which victim fails to sustain a stiff erection during sexual process and become dissatisfied.
The Americans for Tax Reform organizationnoted that in the latest year for which complete records are available (2013) Arizona gained the most in terms of “wealth migration,” predominately from high tax, high regulation states.

“In 2013 Arizona had the largest net population gains from:

California 5,366 ($317 million)
Illinois 3,701 ($238 million)
Washington 1,538 ($82 million)
New Mexico 1,304 ($50 million)
New York 1,251 ($96 million)

States like New York, Illinois, and California were 2013’s biggest losers.”

Overall fiscal health of each individual state has been ranked by the Mercatus Center at George Mason University .

“With new spending commitments for Medicaid and growing long-term obligations for pensions and health care benefits, states must be ever vigilant to consider both the short- and long-term consequences of policy decisions. Understanding how each state is performing in regard to a variety of fiscal indicators can help state policymakers as they make these decisions. A closer analysis of the individual metrics behind the ranking shows how each state’s fiscal condition should be assessed. Notably, nearly all states have unfunded pension liabilities that are large relative to state personal income, indicating that all states need to take a closer look at their unfunded pensions, which represent a significant portion of each state’s economy. Another financial crisis could mean serious trouble for many states that are otherwise fiscally stable.”

According to the Mercatus research, Alaska, North Dakota, South Dakota, Nebraska and Florida are currently the most stable, while Illinois, New Jersey, Massachusetts, Connecticut, and New York at the bottom.

The complete rankings, from best to worst: Alaska, North Dakota, South Dakota, Nebraska, Florida, Wyoming, Ohio, Tennessee, Oklahoma, Montana, Utah, Nevada, Alabama, Missouri, Idaho, Indiana, South Carolina, Iowa, Texas, New Hampshire, Virginia, Colorado, Washington, Kansas, Oregon, Georgia, North Carolina, Wisconsin, Arkansas, Delaware, Minnesota, Arizona, Mississippi, Michigan, Louisiana, New Mexico, Maryland, Rhode Island, Vermont, Hawaii, Pennsylvania, Maine, West Virginia, California, Kentucky, New York, Connecticut, Massachusetts, New Jersey, Illinois.

Quick Analysis

Ignoring National Security Needs

Too many in Washington are far less interested in protecting against foreign military threats than in pushing a separate agenda. The defense budget may hold steady, but accounting for inflation, even a small increase is actually a cut. It’s a bad time to underfund national security. How defense dollars are used is vital. While key, front-line needs are crucial, the Defense Department spends money on items such as placing solar panels on the Pentagon and pursuing nonexistent internal threats from its own service personnel. Even as dangers lurk in Ukraine, the Middle East, the Indo-Pacific and on America’s own southern border, some of those entrusted with the defense of the nation are using the their budget to pursue political goals. The most important element of our defense, the men and women who serve, is in deep trouble. In 2023, the military fell short of its recruitment goal by an astounding 41,000. A Military Times report stated that “One possibility [for missing recruitment goals] that is increasingly resonating with veterans is that the military is too ‘woke.’ Sen. Tommy Tuberville, R-Ala., for example, is among a group of Republican senators who have repeatedly blamed recruiting problems on the Biden administration for trying to build a ‘woke Army.’ Key defense fundamentals, both conventional and strategic, are facing challenges. An essential element of updating our nuclear deterrent is behind schedule. According to Rep. Mike Rogers, Chair of the House Armed Services Committee, the Sentinel land-based missile program, a key part of the modernization program, is not doing well. “Sentinel is absolutely necessary for the future of our nuclear deterrent… The Department must ensure that Sentinel is ready in time to replace the current ICBMs before they reach the end of their lives. Failure is not an option.” As an actual assault on U.S. interests becomes more likely than at any time since the Cold War, eyes that should be focused on the threat are looking elsewhere. In an August address to West Point cadets, Deputy Defense Secretary Kathleen Hicks said “Climate change is a national security issue…” A Heritage Foundation study reports that “The Department of Defense has taken on the most ambitious climate change policy agenda in its history. On January 27, 2021, President Joe Biden declared by executive order “that climate considerations shall be an essential element of United States foreign policy and national security” and directed that: ’The Secretary of Defense and the Chairman of the Joint Chiefs of Staff shall consider the security implications of climate change.’” Our major adversary, China, grows stronger at sea as the U.S. falls behind. Beijing has built a navy larger than America’s. In fact, the U.S. Navy’s fleet is now smaller than it was in 2007. Mackenzie Eaglen, writing for the American Enterprise Institute reports that “The Navy has been making ends meet for now, but can only surge at this tempo for a limited period of time as deployment extensions continue to place additional wear and tear on overworked crews and aging ships. Furthermore, the fleet is set to slowly but steadily get smaller before it gets any bigger, as early retirements pile up and replacements slow….Battle force retirements have largely outpaced new procurement for the past two decades. Unstable funding and changing demands have left industry to cut down their shipbuilding operations to stay profitable, hollowing out domestic shipbuilding capacity and limiting our ability to build the fleet of the future. As former Chief of Naval Operations…Adm. Mike Gilday bluntly put it… ‘’The fleet is aging. As ships become older, they become more expensive and difficult to maintain. Ships are being tied in up in compounded maintenance delays, taking numerous ships off the line. Copious maintenance delays for the surface fleet resulted in less than 68 percent surface fleet ships deemed “mission-capable,” last year. Submarines face a similar situation, with just 63 percent of attack submarines available in the last year, further shrinking the true size of our Navy.” While Democrats have engaged in diverting military funds and attention away from defense and towards environmental and woke goals, Republicans have made their share of mistakes, as well. The border is a key issue and Biden’s negligence continues to produce current harm and future threats. But the GOP’s leveraging withholding of support for Ukraine and Israel for border policy reform is a poor strategy, simply replacing one threat with another. The current National Defense Authorization Act has been criticized as one that fails to address the threat from America’ “Pacing challenger,” China. A Heritage analysis points out that ‘Not long ago, House Republicans could have credibly argued that they were Capitol Hill’s toughest China hawks. Despite that track record, lame-duck Financial Services Committee Chairman Patrick McHenry (R-NC) and a few cronies were allowed to strip out virtually all of the important China-related national security provisions from this year’s National Defense Authorization Act (NDAA).” Photo: Chinese frigate firing. (China Defense agency)