The State of Indiana Ranks pretty well in new findings from an intense study of state finances. In their fourth year of this study, researchers at George Mason University went through each state’s finances and ranked them. Most detailed government study of government annual records.

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. 

This ranking of the 50 states, reproduced from page 29 of the study, is based on their fiscal solvency in five separate categories:

• Cash solvency.  Does a state have enough cash on hand to cover its short-term bills?
• Budget solvency. Can a state cover its fiscal year spending with current revenues, or does it have a budget shortfall?
• Long-run solvency. Can a state meet its long-term spending commitments? Will there be enough money to cushion it from economic shocks or other long-term fiscal risks?
• Service-level solvency. How much “fiscal slack” does a state have to increase spending if citizens demand more services?
• Trust fund solvency. How large are each state’s unfunded pension and healthcare liabilities?