Industry News

Recently, Fitch Ratings released its U.S. States Sector Monitor – 2024 State Liability Report. The annual survey report covers U.S. states’ direct debt and pension liabilities. In fiscal 2023, although the improvement in post-pandemic revenue began to slow, state fiscal conditions continued to improve with reserve balances at historically high levels.

State long-term liabilities (LTL) increased as of fiscal 2023 audits. The report states, “Despite variability in the LTL metric, stronger state contribution practices are supporting the sustainability of pensions and could lower net pension liabilities (NPLs) over time.”

According to Fitch Ratings, “Consistent with their strong fiscal positions in the aftermath of the pandemic, U.S. states continued to improve their pension contribution practices in fiscal 2023, with 40 states making at least full actuarially determined contributions (ADCs), up from 37 states in fiscal 2022 and 25 states in fiscal 2016. Ten states contributed almost $12 billion beyond their ADCs in fiscal 2023, accelerating funding progress and reducing the future budgetary burden of contributions.”

The report also includes an appendix with the individual state direct debt and adjusted NPLs for all 50 states as of fiscal 2023.

The report is available here.