The 10 Best States For Fiscal Stability

Fiscal responsibility is an important attribute for a state.
Fiscal responsibility is an important attribute for a state.

The Bill of Rights enumerates the rights of Americans. To provide the rights, the State government should ensure fiscal stability. Such stability is vital in ensuring that government projects and programs are successfully implemented. Stability-oriented policies lead to prudent expenditure and enable economic crisis mitigation. The fiscal sustainability concept can either be short or long term. Short-term focuses on liquidity management and budget control whereas long-term fiscal stability parameters are a liability on public pension and creditworthiness. Below are the best States for Fiscal Stability.

Top States for Fiscal Stability


Utah State is ranked the best in fiscal stability. The booming economy, stable business environment, and favorable tax policy keep the State on the top. Utah’s strong economic foundation has led to pro-energy and pro-infrastructure development. In the latest US News survey, Utah scored highly in terms of job creation, graduate rates in education, high credit rating, and internet accessibility. The state is rated 2nd in short-term fiscal stability. In long-term strength, Utah is position 13 out of the 50 states.

North Dakota

As the second best state in fiscal stability, North Dakota is the best state in short-term fiscal stability. The high rating is contributed by the state’s ability to have a balanced budget and availability of sufficient capital to cover short-term liabilities. North Dakota State has been able to sufficiently fund current obligations and also secures a stable economic future. The long-term obligations of well-funded pension scheme have been maintained making the state rank 19th in long-term fiscal stability.


Florida State is ranked 3rd and 15th in of short term and long term fiscal stability respectively. The state scored highly in infrastructural development, job and business opportunities, education standards, and budgetary control. The ratings have led to high quality of life and low crime rates. The state has put emphasis on budget reserve prudence to prevent the cycle of spend and tax people than tax and spend.

South Dakota

South Dakota is ranked 5th and 6th in short and long-term fiscal stability respectively. The ranking is an indicator of a balanced fiscal state with an emphasis on the present and future economic focus. South Dakota State has proposed constitutional amendments in fiscal policies to assist improve on short and long-term stability. The amendments focus on population growth, inflation, the growth of personal income and GDP growth. South Dakota has a policy on how to utilize any excess revenue divided into four buckets. The buckets are creating a budget reserve fund for emergencies, property tax relief, Building State Fund, and Revenue Replacement Fund.


Tennessee is ranked 1st in long-term fiscal stability and 9th in short-term fiscal stability. The long-term strength incorporates the ability to plan adequately for pension obligations as well as issue bonds at a favorable cost. Proper implementation of the two leads to high credit rating. Despite low ratings in the health sector, the fiscal health of the state is high in economic performance, infrastructural development, and opportunities.

The Commission on Fiscal Stability and Economic Growth

The US established a commission with the mandate of spearheading economic growth and ensures fiscal stability with financial competitiveness. A major focus is on tax policy, infrastructural funding and workforce training. The commission shall make recommendations in reference to the State’s income and expenditure, debt management, and tax structures. The aim is to attain balanced and time-bound budgets and materially make a state attractive to present and future investors and residents.

The 10 Best States for Fiscal Stability

RankStateShort-Term Fiscal StabilityLong-Term Fiscal Stability
1 Utah213
2 North Dakota119
3 Florida315
4 South Dakota56
5 Tennessee91
6 North Carolina83
7 Idaho718
8 Indiana172
9 Wyoming436
10 Missouri1017

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