If a state went out of business today, would it be able to pay all of its debts and have money left over? Or would it have to levy an assessment on its residents to meet its financial obligations? To help understand these questions, this issue includes the most recent State Solvency Index.
August 2011, Volume 29, Issue 15-16
State Solvency Slippage
A Silver Lining?
A new federal budget law sets spending targets to achieve federal budget deficit reduction and creates a special committee to dig even deeper for additional cuts or new revenues. Should that committee fail in its mission, the law would impose across-the-board cuts on many federal spending programs, but would spare the preponderance of funding that flows to states.