Vermont Ranks “Below Average” for Fiscal Condition

by Rob Roper

The Mercatus Center released its annual study, “Ranking the States by Fiscal Condition.” Vermont landed in the “Below Average” category with an overall raking of 40.

According to the summary, “The study ranks each US state’s financial health based on short- and long-term debt and other key fiscal obligations, such as unfunded pensions and healthcare benefits.” The numbers used to make these calculations are from 2015.

The most major red flag for Vermont came in the “Service-Level Solvency” category, which determined the ability of a state to raise taxes in the face of a fiscal emergency, or, in other words, how much tax capacity is left. Here Vermont ranked 48th. We are taxed to the max.

Spelling more bad news, Vermont’s “Trust Fund Solvency” and “Long Run Solvency” rankings fell far enough to be mentioned in the “big movers” section. On the positive side, our “Budget Solvency” number improved significantly.

You can read the study summary HERE, the Vermont one pager HERE, and the full study HERE.

Rob Roper is president of the Ethan Allen Institute. 

 

 

{ 4 comments… read them below or add one }

Willem Post July 12, 2017 at 12:50 pm

Bob,

What about business-friendliness rating?

One of the reasons is public-private partnerships, such as Efficiency Vermont.

Here is my article on the subject.
http://www.windtaskforce.org/profiles/blogs/efficiency-vermont

Reply

Jim Bulmer July 16, 2017 at 10:23 pm

Just another black mark. What ever the topic, if it’s a positive one, Vermont always ranks toward the bottom. On the other hand if the catagory is negative, Vermont is always at or near the top. And the folks in Montpelier appear to be clueless or could care less.

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Kerin Bostock July 22, 2017 at 5:08 pm

Thank you for sharing that link. I’ve lived in Rutland since ’03 and Vermont since ’93 and had no idea the seriousness. As of now, Governor Scott is adamant about the greenhouse gases in Vermont. A goal and policy for renewable energy set for 2018. How will this affect that fee in an already maxed tax Vermont.

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Kerin Bostock July 22, 2017 at 4:50 pm

Maybe it’s about time the minority in this State is heard. Mostly, we want jobs and friendly activities to do. Friendly as in music, art, family activities, all ages, all walks of life, non structured, stuff.
Here in Rutland, our mall has loads of room! Sure could use a new clothing department and arcade! We don’t need another automobile sale.
We do need more public transportation.

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