Connecticut is ranked 47th in the country for credit quality, according to Hartford-based investment manager Conning.
Nationwide, states’ outlooks have deteriorated from “stable” to “declining,” Conning said in its 2016 State of the States report, with tax revenue headed downward, reserves falling, and expenditures growing.
Some of the factors contributing to states’ struggles include political gridlock, falling revenues, uneven job growth and pension liabilities, the report said.
States that have fared better in Conning’s view, including North Carolina, Colorado and New Hampshire, manifest strong economic performance, but those ranking at the bottom, including Connecticut, New Mexico, Kentucky and West Virginia, share large legacy costs with slower-growing economies that have hindered credit improvement. A key challenge for many lagging states is to attract companies in high-paying and -growing sectors, the report said.
One of the drags on Connecticut’s economy is its economic debt per capita, which is the third highest in the country at $19,987, outranked by Alaska at $22,225 and New Jersey at $22,196. This particular ranking reflects states at most risk of rising pension contributions, the report states.
In contrast to states that are struggling, Colorado shows strong growth in personal income and employment with low debt levels and a favorable business climate, while New Hampshire has strong employment, personal income, and GDP growth with low unemployment rate.
