Gov. Rick Scott’s Florida Ranked First In The Nation For Fiscal Health

GOP Governor Rick Scott’s pro-growth policies are paying off for the people of Florida. A new study by George Mason University’s Mercatus Center ranked Florida as the top state for fiscal strength in the country, with high levels of cash in reserve and low unfunded pension liabilities. Under Governor Scott, the Sunshine State continues to set the standard for responsible budget management while dramatically expanding economic opportunity.

The Tampa Bay Business Journal reports:

“It’s a good time to be in the Sunshine State, according to a study released Tuesday by George Mason University’s Mercatus Center.

The group ranked Florida as the state with the strongest fiscal condition based on data collected from each state’s most recent audited comprehensive annual financial report. This year’s study, the center’s fourth, looked at reports from fiscal year 2015.

Florida’s No. 1 ranking ends Alaska’s three-year reign atop the leaderboard.

For the ranking, each state was evaluated on the amount of cash it had on hand as well as its budget solvency, long-run solvency, service-level solvency and trust-fund solvency.

Florida ranked No. 1 in fiscal solvency because of the high levels of cash it kept in reserve — between eight and 10 times the cash needed to cover the state’s short-term obligations. Florida also benefited from revenue that exceed expenses by 7 percent and from having a low liability-to-asset ratio compared to other states.

Florida’s liabilities were 34 percent of total assets, much lower than the state average of 61 percent, the study said. Additionally, the study noted that Florida has relatively low unfunded pension obligations – 22 percent of state personal income – and a total debt of $24.5 billion, which represents just 3 percent of state personal income.