A new study from the Mercatus Center highlighted improvements in North Carolina’s fiscal performance from fiscal 2013 to 2014.
“Ranking the States by Fiscal Conditions, 2016 Edition” ranked the state’s fiscal performance for the 2014 fiscal year 21st in the nation. That was a jump of six places from its ranking of 27th in the 2013 fiscal year.
According to the center: “A new study for the Mercatus Center at George Mason University ranks each U.S. state’s financial health based on short- and long-term debt and other key fiscal obligations, such as unfunded pensions and healthcare benefits.”
According to Mercatus, the Old North State was a “big mover” in two key areas:
Two states—Maine and North Carolina—experienced a significant shift in their long-run solvency ranking. Maine fell by eight spots and North Carolina improved by seven spots.
There was little movement in the service-solvency ranking [how much “fiscal slack” a state has raise spending if needed], except in the case of North Carolina, which improved its position by six places.
Note that the improvements happened from the 2013 to 2014 fiscal years, after key conservative reforms were imposed by the legislature and governor on the state’s fiscal governance.
But don’t break out the champagne just yet. Mercatus notes that almost all the states, including NC, still face severe fiscal stress. A lot more needs to be done in North Carolina. But the new study shows North Carolina has been making important strides forward.
To find out more about the study, click here.
To learn more about the long-term story of the state’s budget, check out our new policy guide.