Florida Ranks 5th for Financial Health in New Study

Posted at 3:45 PM, Jul 07, 2015
and last updated 2015-07-07 12:03:12-04

TALLAHASSEE, Fla. (WTXL) - Florida ranks fifth among all 50 states for being the most fiscally healthy, according to the Mercatus Center.

In new research for the Mercatus Center at George Mason University, Senior Research Fellow Eileen Norcross ranks each US state’s financial health based the states' own audited reports and their fiscal solvency in five separate categories:

Cash solvency

Budget solvency

Long-run solvency

Service-level solvency

Trust fund solvency

The top five states for fiscal solvency are as follows:

1. Alaska

2. North Dakota

3. South Dakota

4. Nebraska

5. Florida

According to the study, these states are considered fiscally healthy relative to other states because they have significant amounts of cash on hand and relatively low short-term debt obligations. However, the study also finds each state faces substantial long-term challengers concerning its pension and health care benefits systems.

Florida Governor Rick Scott released the following statement today regarding the rankings:

Governor Scott said, “Florida’s top five ranking of most fiscally healthy states is great news. By paying down debt, maintaining a healthy pension system, balancing our budget and building our reserves, Florida’s economy is growing so we can make important investments in our families and ensure our state is in great financial shape. Florida has become a global beacon for business, and created over 879,000 new private sector jobs in a little over four years. We will continue to work every day to make Florida the best place for business and to get a great job.”

Florida was also ranked #5 during FY 2013.