(NASHVILLE, TN), February 15, 2013 – Tennessee is ranked among the top three states in the nation according to a leading financial publication. Barron’s, The Dow Jones Business and Financial Weekly, has released their “Best and Worst Run States,” showing the nation’s healthiest balance sheets belong to South Dakota, Iowa and Tennessee.
“We have worked very hard over the past several years to keep our state on sound financial footing, even if it meant painful budgetary decisions,” said Senate Finance Committee Chairman Randy McNally. “Like with family budgets, debt is one of the worst pitfalls in financial planning, particularly in lean economic times like we have experienced over the past several years.”
The ranking was based on analysis from Eaton Vance, a leading manager of municipal funds. The analysis measures a ratio of each state’s combined debt and unfunded pension liabilites, relative to their GDP. Tennessee had a debt plus pension liability to GDP of 1.5% as compared to Connecticut, which was ranked the most vulnerable state in the nation with a 17.1% ratio. Illinois and Hawaii also ranked among the lowest three states.
“We have taken a very fiscally prudent path in our state finances,” added Chairman McNally. “I appreciate the acknowledgement by this publication that shows our efforts to keep Tennessee’s finances as sound as possible.”