Missouri’s fiscal health ranks above the average for U.S. states, putting it squarely in the top quartile, according to a new report from the Mercatus Center at George Mason University.
The state has the eleventh-best fiscal health in the country, calculated using factors including cash on hand, long-term commitments and unfunded pension and health care liabilities. Missouri ranked No. 22 in last year’s report.
In the area of budget solvency, Missouri was among the states considered to have “improved their budget position significantly,” according to the report. But mostly it was the state’s improvement in tax revenues that saw it rise in the rankings.
One of the factors keeping Missouri from the top of the list, according to the report, is its negative net asset ratio. This means the state does not have enough money stored for long-term investments. Missouri makes up for this by having over four times the necessary short-term assets compared to short-term liabilities, the report said.