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Report: Illinois is 2018's least fiscally stable state

Illinois is the most financially unstable state in the nation, according to new ranking by U.S. News and World Report.

The ranking of 2018’s most fiscally unstable states was conducted by McKinsey & Company, the global management and consulting firm. The report considered credit rating and state public pension liability to rank states on long-term stability. For short term, the report measured each state's cash solvency and budget balance.

Illinois was 50th overall.

The state’s pension debt – commonly estimated at $130 billion, but measured as high as $250 billion last summer by Moody’s – was a factor. That debt load was cited by Moody’s and other creditors as a cause of the state’s near junk rating.

Rankings by short-term stability used the amount of liquid funds in a state’s budget and how balanced the state’s budget is.