Puerto Rico Is Greece, & These 5 States Are Next To Go | WHAT REALLY HAPPENED

Puerto Rico Is Greece, & These 5 States Are Next To Go

The direct indebtedness of US states (excluding revenue bonds) is $500 billion. However, bonds are just one part of the picture: states have another trillion in future obligations related to pension and retiree healthcare. In the summer of 2014, we conducted a deep-dive analysis of US states, incorporating bonds, pension obligations and retiree healthcare obligations. After reviewing over 300 Comprehensive Annual Financial Reports from different states, we pulled together an assessment of each state’s total debt service relative to its tax collections, incorporating the need to pay down underfunded pension and retiree healthcare obligations.

While there are five states with significant challenges (Illinois, Connecticut, Hawaii, New Jersey, and Kentucky) , the majority of states have debt service-to-revenue ratios that are more manageable.

Webmaster's Commentary: 

Thank you for wrecking our tourism economy, TSA!

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA