States in financial trouble – Don’t move there


While we concern ourselves with the state of the federal government, perhaps we should really be as much or more concerned with the financial stability of the state in which we live. This will determine how the basic safety of our family and ourselves fare. Fire, police and schools are impacted. Here tis:

Most people don’t consider this, but you should really look into the financial stability of any state that you’re thinking about moving to. If worse comes to worse, and the economy collapses, you want to make sure that the state you live in is fiscally responsible. States that have high debts and low credit ratings are living on the edge. Any major economic event could push them into bankruptcy.

That means pensions could go unfunded. Public services like law enforcement and firefighting would be understaffed. The infrastructure of the state would crumble, and public education would be decimated. Taxes would likely be increased, which would only exacerbate the financial problems of the state because businesses would leave, leading to more unemployment and a smaller tax base. Obviously, all of these factors could contribute to the risk of civil unrest.

So which states should you avoid? There are three factors you should look out for. There’s the amount of debt as a percentage of the state’s GDP, the amount of debt per person (debt per capita), and the state’s current credit rating.

The 10 states with the worst debt to GDP ratios are:

New York-22.71%

South Carolina-21.31%

Rhode Island-19.40%

Washington-18.83%

Florida-18.65%

Kentucky-18.50%

Illinois-18.45%

Connecticut-17.52%

California-17.18%

Pennsylvania-17.17

The 10 states with the most debt per person are:

Massachusetts-$11,337.63

Connecticut-$9,297.33

Rhode Island-$8,919.27

Alaska-$8,516.41

New Jersey-$7,517.15

New York-$7,040.97

Hawaii-$6,194.64

New Hampshire-$6,152.00

Delaware-$5,962.86

Vermont-$5,259.69

And perhaps the most important factor is the credit rating of any given state. This gives you a good idea of how investors think a state will fare financially in the future, as opposed to a state’s current financial woes. According to credit rating agencies like Standard and Poor’s, as of last year the states with the five worst credit ratings are: (Has interesting stats as well)

  • Illinois-BBB
  • New Jersey-A
  • Kentucky-A+
  • California-AA-
  • Connecticut-AA-

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18 Responses to “States in financial trouble – Don’t move there”

  1. The Weekly Headlines – My Daily Musing – Br Andrew's Muses Says:

    […] States in financial trouble – Don’t move there […]

    Like

  2. The Weekly Headlines – My Daily Musing Says:

    […] States in financial trouble – Don’t move there […]

    Like

  3. Mustang Says:

    With Boeing recent move and Gov. Hailey’s conservatism, SC surprises me.

    Liked by 1 person

    • bunkerville Says:

      A lot of the States surprised me because many require a balanced budget. PA requires one. Now I know why Rendell wanted to sell the roads to foreign entities and then become toll roads. Stupid.

      Like

    • bunkerville Says:

      Mustang… looks like it is the local debt that is the issue 7 plus State to 13 plus local

      Like

  4. Steve Dennis Says:

    Interesting, thanks for sharing it. I am sad to see NH in the top ten for debt per person. We now have a Republican governor and legislature so hopefully we can make a dent in that.

    Liked by 1 person

    • bunkerville Says:

      I was very surprised to see your State in such a place… I thought it had been more GOP. Many of these states require a balanced budget such as PA so its curious how they acquired so much debt.. I guess it doesn’t preclude borrowing.

      Like

  5. teelee2013 Says:

    Wow. Eye-opening.

    Liked by 1 person

    • bunkerville Says:

      Your looking good!

      Like

  6. Hootin' Anni Says:

    I’m surprised Louisiana isn’t listed here. Just the other day, after reading about where I LIVE, in Corpus Christi, about dredging our ship channel to a deeper depth of nearly 52 feet to help with larger tanker ships [and probably the onset of cruise ships after the higher bridge in the harbor is completed]…anyway I was listening and reading the article underneath about New Orleans and the Mississippi River needing repairs and more dredging to keep the river open to ship/cargo traffic….guess what [not surprising]…in 2011, New Orleans found out that the tax money from the incoming/outgoing ships solely for the need of maintenance and repair of the route….was GONE. Congress ‘stole’ the moneys. Hmmmmm, and who’s administration was that y’wonder? I always got the impression that our government believes LA is a poor state….biased/prejudiced as they are in Congress.

    You got me riled again. lol

    Like

    • bunkerville Says:

      Louisiana 7.93% 8.39% 16.32%
      Your getting there!! Sate local Total. Yea, I have a tendency to do that! LOL

      Like

  7. Brittius Says:

    Reblogged this on Brittius and commented:
    Wait until the free college starts in NYS. Real property taxes are going to burst.

    Liked by 1 person

    • bunkerville Says:

      Unbelievable.

      Liked by 1 person

      • Brittius Says:

        Cuomo, is already sniffing at a 2020 run for the White House, so he is pandering to the younger voters, rather than the older and elderly homeowners. Cuomo’s neighbor, is none other than George Soros.

        Liked by 1 person

      • bunkerville Says:

        Say it isn’t so….. Fauxahontas will not be pleased

        Liked by 1 person

      • Brittius Says:

        2020 (DNC): Nutjob vs. Nutjob.
        Business as Usual.

        Liked by 1 person

  8. Just Simply Linda Says:

    I wonder with New York ,is it only the City? Grant it, us folks here in the Southern Tier/ western side of the state are pretty poor…I’m personally carrying close to $40,000 debt (being in school/financial aid)–I would venture say that is prob the “norm”.

    Like

    • bunkerville Says:

      First number is State and second local.. totel. You need fracking and your area would rock.. I think you are in the marcellius shale area. NE PA is rocking… poor no more. Jobs Jobs jobs.
      New York $7,173.6 $10,740.3 $17,913.9

      Like


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